Marc Gerson comments on the final regulations (T.D. 9604) issued on the excise tax imposed on the sale of medical devices. Gerson said that an important change in the final regs is the expansion of what type of business constitutes a retail establishment for purposes of the retail exemption. Based on comments it received, the IRS said retail sales may include those made over the Internet or telephone, whether or not the business is associated with a brick-and-mortar store. Gerson said the expanded list of identified retail establishments is helpful and consistent with the statute's legislative history. He added that the interim guidance (Notice 2012-77) addressed several significant issues, including the determination of constructive sales price, the tax treatment of medical convenience kits, and penalties for failing to make timely deposits of taxes.