IRS Moves to Amend Excise Tax Rules on Medicare Drug Price Talks

The IRS is seeking to update its regulations involving an excise tax imposed on sales by manufacturers, producers, or importers of certain drugs if they refuse to comply with the Medicare Drug Price Negotiation Program.

The Internal Revenue Service published Tuesday a proposed rule (RIN 1545-BQ92) that would lay out rules governing the imposition and calculation of the excise tax. It also would provide definitions of terms such as “manufacturer,” “sale,” and “price.”

The negotiation program, created under President Joe Biden’s signature Inflation Reduction Act, allows the Centers for Medicare & Medicaid Services for the first time to ...