Electromed (NSDQ:ELMD) said yesterday that the Internal Revenue Service will refund approximately $406,000 the company paid related to the federal medical device excise taxes associated with the sale of its SmartVest airway clearance system.
The New Prague, Minn.-based company said the refund comes from sales of the device during tax periods ended June 30, 2014 through December 31, 2015.
Electromed said that the refund will be recognized on its financial statements during its first fiscal quarter, ending June 30, and is the result of an examination the company concluded with the IRS this month which determined that the SmartVest was eligible for the retail exemption from the tax.
The company added that it will be exempt from the medical device tax after the conclusion of the current two-year medical device tax moratorium, scheduled to end on December 31 next year, according to a press release.
Last June, Electromed said it settled a beef with the Centers for Medicare & Medicaid Services for roughly $1 million.