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IRS Issues Rules on New Taxes Imposed by the Affordable Care Act | Aon

IRS Issues Rules on New Taxes Imposed by the Affordable Care Act


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The Internal Revenue Service (IRS) released guidance implementing three new federal taxes under the Patient Protection and Affordable Care Act (Affordable Care Act) beginning January 1, 2013:

  • A proposed rule imposing an 0.9% additional Medicare tax on high-income earners;
  • A proposed rule implementing a 3.8% net investment tax on certain investment income for high-income earners; and
  • Final rules implementing a 2.3% excise tax on medical devices.

Although the rules on the additional Medicare tax and the net investment income tax are in proposed form, the IRS stated that taxpayers may rely on the proposed rules beginning January 1, 2013. Any changes made in the final rules will only apply after publication of the final rules. The Aon Hewitt bulletin below describes the rules for each of the new taxes.

IRS Issues Rules on New Taxes Imposed by the Affordable Care Act