Tax

[NicelyMKV]

I thought I would share the latest important news regarding our country's new Federal Medical Device Excise Tax (2.3% of the finished crown, denture, etc.) that will take into effect starting January 1, 2013.
I just received this from the NADL, IN THE EVENT YOU DID NOT KNOW - - - >
The National Association of Dental Laboratories has been active on the issue of the pending medical device excise tax at the federal level. The Florida Dental Laboratory Association believes the following information will be of interest to you as you prepare your laboratory budget for 2013.
In May 2012, NADL participated with the American Dental Association and nearly a dozen other allied dental organization in submitting formal comment to the Internal Revenue Service requesting that dental devices not be included in the administrative rule related to the medical device excise tax. This excise tax was included as a provision in the health care reform law passed in 2010.
The IRS held a public hearing in Washington D.C. in May 2012 and the formal submission on exempting dental devices was denied. This was the second time this had taken place, as NADL and ADA had submitted another request using different policy arguments in the spring of 2011 which was also denied.
In June 2012, the U.S. House of Representatives approved House Resolution H.R. 436, which would repeal the medical device excise tax, by a vote of 270-146. The U.S. Senate has not taken up the bill and all indications are that there are not enough votes for the U.S. Senate to hear the bill due to the political party composition of the Senate.
Even if the Senate were to pass and repeal this excise tax, President Obama has indicated he would VETO repeal of the medical device excise tax.
For dental laboratories this means come January 1, 2013, you will be required to remit a 2.3% excise tax on sales of finished devices.
For example, if the cost of your finished device such as a crown, to the dentist is $150.00, you would owe $3.45 for that crown. A laboratory that does $150,000.00 in gross sales of finished devices would owe $3,450.00 annually to the IRS.
NADL has researched the requirements of this new tax as it relates to administrative filing.
Dental laboratories will have to file excise taxes using Form 720 which is available at www.irs.gov<http://www.irs.gov> to report and pay the tax. This form has to be filed quarterly and then a final Form 720 is submitted at the end of each year.
Dental laboratories must use electronic funds transfer to make excise tax deposits. This can be done using the Electronic Federal Tax Payment System or same day wire transfers can be made from banking institutions.
The filing period for quarterly taxes is by the 14th day following the close of the previous quarter. The dates for filing taxes are April 30th, July 31st, October 31st and January 31st.
Excise taxes filed and deposited must be at least 95% of the net tax liability for the quarter. Form 720 includes sections which will assist a dental laboratory's accountant or bookkeeper figure the tax liability for each quarter.


Just received this


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[ParkwayDental]

Time to raise our prices to compensate for the taxes

 

[NicelyMKV]

Then you will just pay more! Lol Aaaaaahhhh


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[RileyS]

definitely voting for Obama! hoo-ra!*
There goes my raise


*This should be read with heavy sarcasm.

 

[corona]

this just erks me to no end . the government enacts another program that cannot be paid for so lets just tax tax tax . out of touch idiots making the law and dont pay for it with THEIR money . Thats the problem, milton friedmann was correct about people spending their own money vs. people spending others money. The rule is ...just raise my prices . and inevitably that cost will just get past on to the end consumer . vendors dont want to take a hit so they raise prices , lab buying their supplies dont want to take a hit so they raise prices , doctors dont want to take a hit so they raise their fees , and the consumer in need of the product takes in wallet ... again .

Its like the government is saying : please business owners and future owners ... just open your business in another country. they are pushing companies to make decisions to stay alive to just close factories and businesses here in the u. s. a. and just move to another country where tax liabitlities are worth the trip , and who suffers , the consumer (who now is out of a job) ....again. Too much regulation, too much intrusivness , why cant they just let the free market do what it does best ? make a quality product at a great price to the consumer . this tax is nothing more than a demotion in pay . thanks obama , thanks alot .

 

[Al.]

I won't absorb that, it will be a separate line on the bill to the Dr.

2.3 % Obamacare Tax

The Dr is going to have to decide if he is going to eat the tax or pass it on to the patient.

 

[Al.]

Of course this should all change after we kick Obamas ass out of the Whitehouse.

 

[Al.]

I will be sending a letter to all my Drs telling them that we will be adding the 2.3 % Obama Care tax on to their statements for each case starting Jan 1.

 

[corona]

I won't absorb that, it will be a separate line on the bill to the Dr.

2.3 % Obamacare Tax

The Dr is going to have to decide if he is going to eat the tax or pass it on to the patient.

i feel you al , but unfortunately obama says that you HAVE to hide that on your invoice , you cannot show the tax as a line item . pretty sneeky huh?

 

[corona]

the real kicker is that if you just raise your prices ... you will have to pay more on the tax . from my understanding the tax is a tax on your GROSS sales , not on net , which is ridiculous.

Does anyone else have any more info on this ??? AJEL where are you man ?

 

[v2thmaster]

Can some one clarify please what else except finished crowns have to be taxed? What about implant parts,attachments, duplicated models, night guards, diagnostic waxups, etc? If for example it is a screw retained implant crown, should I break the price to: Crown, metal, implant, analog, soft tissue model and pay tax on crown part only? Or I'm wrong?

 

[Al.]

i feel you al , but unfortunately obama says that you HAVE to hide that on your invoice , you cannot show the tax as a line item . pretty sneeky huh?

I WILL NOT HIDE iT !!!

I Will send out notices and name it ObamaCare Tax.
it's going to be a line item on the bill.
Otherwise it will be a tax on me.

They can't force us to hide their tax. And I won't do just like I don't fill out the US Census.
I got the long form this time asking all kinds of personal questions. I threw it away, they came to my house I told them 2 adults and 2 children and no more.
They called and told me I must fill it out or else be penalized. LOL i know our rights legally we don't have to it's hot are they are blowing.

I WILL LINE ITEM IT !!! And I may highlight it in Red.

 

[ed 3]

I wonder, how many of us,dental tech's support Obamagog anyway:questionmark: Did't vote for him,never will.

 

[doug]

Spent time today in the FDLA board meeting. The tax is going to exist. You will charge a tax on any device that is placed in the mouth that the patient leaves the dental office with. That will include implant abutments. You do not have to "Hide" the tax, it is a federal tax and you have to be accountable for what you are taxing. Mounting models is an example of something that would not be taxed.

 

[sidesh0wb0b]

I WILL NOT HIDE iT !!!

I Will send out notices and name it ObamaCare Tax.
it's going to be a line item on the bill.
Otherwise it will be a tax on me.

They can't force us to hide their tax. And I won't do just like I don't fill out the US Census.
I got the long form this time asking all kinds of personal questions. I threw it away, they came to my house I told them 2 adults and 2 children and no more.
They called and told me I must fill it out or else be penalized. LOL i know our rights legally we don't have to it's hot are they are blowing.

I WILL LINE ITEM IT !!! And I may highlight it in Red.

we do not have to hide it, and i am right there with you. i WILL add it as a line item on each invoice AND on the total monthly statement, AND i will make it highlighted and as flashy as possible. it will be labelled as ObamaCare Tax as well.
cheers to that Al

 

[Al.]

Anybody that dosent line item it on the bill is going to take a big hit.

You know who will take the biggest hit is large labs that do a big volume and have low profit margins.

A lab that does 100,000 a month and has only 10% profit margin. Aren't they going to be loosing 25% of their profits if they just absorb the tax??????

 

[Al.]

Wouldn't a lab doing 1000 $100 Bruxirs a month have to pay a extra $2500 a month ?? Or $7500 a quarter or $30000 a year they have to pull out of thin air?

So they MUST charge 100 + 2.50 for ObamaCare for a grand total of 102.50.

This is one of the biggest tax increases I've seen in my life time.

If caught off guard this is the kind of tax increase that could close a lab down.

 

[Al.]

And talking about double taxation what about the milling center? Do they have to charge us 2.5 % for a frame that goes out their door, and then we have to charge again when the completed crown goes out the door?

Yep Obama is on a mission to "Down Size" America and a fine job he is doing.

 

[AJEL]

NicelyMKV Said it very well.
Doug from the ILDA meeting I came out with the information that all new appliances would be subject to the tax as well as anything that applied to the new appliance. That we will need to hold repaired items separately as they will not be taxed or the processes part of their invoice. In other words an articulation for a new appliance taxed the plaster work on a repair or rework not taxed.

Parkway You know i feel the same as you, the 2.3% excise is not 2.3% net, you will have to figure out with your accountant what 2.3% means to your net. 2.3% to my net is like adding 12% to my income tax.
Corona I have been waiting for more definitive information, I have had several PM with some on this forum trying to come up with the best information, & ideas. The IRS agents I have been calling know me by first name now (I'm not sure if that is a good thing),but they understand my concern.

Al If you have the 2.3% excise on a line item it will increase the tax you pay quarterly. If your software has this option to have an information line, not added to the final of the invoice have it inform what the dollar amount of this invoice is going to the portable healthcare excise tax. So last year your crown was $150. this year your crown is $153.45 of which $3.45 is portable healthcare tax. at the quarter you will send in form 740 with the $3.45 if you add this as a line item then you would calculate you sales & then send in $3.53. as the $3.45 would be a sale item. By using an information line you get your passion, across but not have to pay for it in a raw way, I kinda of feel the public aid get way to much of my hard earned taxes and don't want to add to their partying.
The DDS are not happy about this and as they never tell the patient that the $1200. crown has a $150. lab fee they will not tell them that the portable healthcare tax of $3.45 is killing them. I mean they might have trouble making their Jaguar payment because of the tax, not. If they have 8 or more in their office staff I would not want to be one without their own healthcare insurance, the others will probably have to work a little more when you are gone. The general public will have other more expensive realities with 15 taxes hidden in this monster.
Al you are correct this must be passed on but we must work with our accountants like big business so we don't give them a penny more than we have to. I would think of the milled thing as tripple tax, there is a 2.3% on the puck (material),then a 2.3% on the milled item (subcontracted finished product),then a 2.3% to the DDS for the finished product

 

[NicelyMKV]

Off the subject, but I'm going to watch one of my favorite movies today....... It's called " Falling Down".....F this nonsense. How much more are we going to have to take.....


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