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IG Audit Finds Widespread Problems with Enforcing Medical Device Tax

Washington, D.C.– A report issued by the Treasury Inspector General for Tax Administration (TIGTA) found that the Internal Revenue Serivce (IRS) is having significant issues collecting the medical device tax as required by the new health care law. The tax, which was expected to raise $1.2 billion through the first six months of 2013, came up nearly $300 million short of projections. In addition, the IRS erroneously imposed 217 penalties on businesses during one quarter of the implementation. Congressman Erik Paulsen (MN-03) has authored legislation, the Protect Medical Innovation Act, that would repeal the burdensome medical device excise tax. The bill, H.R. 523, has 275 cosponsors, including 45democrats. A previous report from the Advanced Medical Technology Association found that the medical device tax cost 33,000 jobs last year.

“The medical device tax has been a bad idea since day one and the recent report just provides more reason why it needs to be scrapped,” said Paulsen. “I’m committed to including a medical device tax repeal in legislation Congress must pass this year.”

Paulsen, a champion of small business and advocate of free enterprise, entrepreneurship, and innovation, serves on the House Ways and Means Committee, the bicameral Joint Economic Committee, and is co-chair of the Congressional Medical Technology Caucus.

For more information on Congressman Paulsen’s work in Congress visit paulsen.house.gov

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