Beginning January one, 2009 a brand new IRS regulation entails pharmacies to have applied an IIAS (stock knowledge approval program) compliant situation of sale program. To adjust to these new rules, every pharmacy in the USA have to hold out a POS program that complies with these new calls for or discontinue the acceptance of FSA (versatile paying account) credit score historical past and debit taking part in playing cards.
Along with the brand new IRS calls for, the federal authorities has additionally a short time in the past signed into regulation the Monetary Stimulus Program (ESP). An important stimulus for pharmacies is the reward depreciation that the put together provides for capital purchases. This lets a enterprise enterprise to price a capital acquire 100% within the 1st yr (as much as $250,000.00) whether it is set into help by means of the 2008 calendar yr. This acquire returns to straightforward depreciation beginning in 2009 (5 yr depreciation agenda). Each of these rules applied by the IRS will drive pharmacies to acquire/improve POS techniques within the 2008 yr in the event that they wish to proceed to be compliant with the brand new IRS rules.
one. IIAS – Inventory Info Acceptance Program. Beginning in 2009, the IRS is demanding all pharmacies to have applied an IIAS compliant POS program in the event that they wish to proceed accepting FSA (Versatile Spending Account) debit/credit score historical past taking part in playing cards. These credit score historical past taking part in playing cards are issued to personnel of corporations who’ve elected to withhold part of their shell out in a non-taxable Versatile Spending Account or Wellbeing Private financial savings Account (HSA).
a. To day, most pharmacies and retailers take these credit score historical past taking part in playing cards with out the necessity of acknowledgement as they’re branded as normal VISA or MasterCard credit score historical past taking part in playing cards. The IRS is now making use of a qualifying prerequisite, much like the Meals Stamp system, which designates appropriate merchandise that may be procured with the FSA card. Non-suitable merchandise must be compensated for with a varied form of fee. A IIAS compliant POS program must be able to maintain this eligibility itemizing, have the options to unbiased the merchandise and perform a break up tender for appropriate versus non-suitable merchandise. This system may even be wanted to develop audit opinions that adhere to IRS technical specs and preserve 5 years of audit heritage.
b. If a retailer or pharmacy doesn’t have an IIAS compliant POS program on January one, 2009, they are going to no extra time be able to take FSA debit/credit score historical past taking part in playing cards.
c. Pharmacies will menace dropping current consumers and gross sales to pharmacies who’ve applied an IIAS program beginning January one, 2009.
d. Visa has an acknowledged advertising and promoting advertising marketing campaign centered in direction of every FSA/HRA cardholder. This advertising and promoting system educates cardholders on IIAS calls for and compliant retailers.
2. Monetary Stimulus Program (ESP) of 2008 – The President signed into regulation the ESP on February 13, 2008. This act returns the 50% Reward Depreciation for the 2008 yr and likewise boosts the Space 179 price purchases most allowance to $250,000.00. This can permit a pharmacy to price a situation of sale program acquire within the 2008 yr and decrease their tax obligation.