Bill ending shutdown also suspends medical device excise tax, health insurance industry fee

Tax Hot Topics newsletterPresident Donald Trump has signed a temporary extension of government funding (H.R. 195) that will suspend the medical device excise tax and health insurance industry fee, while further postponing the 40% excise “Cadillac” tax on high-cost health plans. The legislation does not include extensions of many other popular temporary tax provisions known as “extenders.”

Time is running out for the extender provisions, many of which expired at the end of 2016. The filing season is set to open Jan. 29, so the best chance to extend these provisions retroactively for 2017 in a way that is administrable is through the next extension of government funding. H.R. 195 only extended government funding for an additional three weeks. Another spending bill will be needed by Feb. 8.

For more information, see this Tax Legislative Update.

Contact Dustin Stamper
Director, Washington National Tax Office
T +1 202 861 4144

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