Obamacare’s controversial medical device tax isn’t bringing in nearly as much cash as expected, according to a federal report issued Tuesday.
The Treasury inspector general for tax administration found that the number of filings for the medical device excise tax, instituted as part of the Affordable Care Act, is already lower than expected — and so is the resulting revenue. The was supposed to bring in $1.2 billion for the first two quarters of 2013, but the federal government only collected $913 million.
The Internal Revenue Service still doesn’t have the ability to identify the medical device manufacturers that are actually required to submit the proper forms and pay the excise tax.
Even for the companies that have paid the tax so far, the IRS doesn’t have the proper processing systems to make sure the amount of tax paid is correct. The IG report found discrepancies in the amount of excise tax paid in 276 out of 5,107 medical device tax forms it examined — resulting in a $117.8 million discrepancy between the amount of tax collected and the amount auditors expected.