IRS Finalizes Excise Tax Rules for Medicare Drug Price Talks (1)

The IRS released final rules Wednesday on procedures for the excise tax imposed on sales by manufacturers, producers, or importers of designated drugs if they refuse to comply with the Biden administration’s drug price negotiation program.

The Internal Revenue Service published rules ([TD 10003, RIN: 1545-BQ93) pertaining to the Medicare Drug Price Negotiation Program and its procedural requirements for how taxpayers must report liability for such tax. The final regulations except the tax from semimonthly deposit requirements, according to the rules.

The negotiation program, created under President Joe Biden’s signature Inflation Reduction Act, allows the Centers for Medicare ...