IRS announces tax on drug makers
WASHINGTON — The Internal Revenue Service has released its guidance on the healthcare-reform law’s tax on drug makers, according to documents posted on the agency’s website.
The tax applies to branded drug companies with total sales of at least $5 million to government health programs, including Medicare, Medicaid, Tricare and programs administered by the defense and veterans affairs departments.
The tax is expected to raise more than $2 billion per year, according to published reports. Drug companies have until Jan. 20 to obtain a fee calculation from the IRS, and until June 2 to offer comments.