Beginning January 1, 2009 a new IRS regulation requires pharmacies to have implemented an IIAS (inventory information approval system) compliant point of sale system. To comply with these new regulations, every pharmacy in the United States must implement a POS system that complies with these new requirements or discontinue the acceptance of FSA (flexible spending account) credit and debit cards.
In addition to the new IRS requirements, the government has also recently signed into law the Economic Stimulus Plan (ESP). The most significant stimulus for pharmacies is the bonus depreciation that the plan offers for capital purchases. This allows a business to expense a capital purchase 100% in the first year (up to $250,000.00) if it is put into service during the 2008 calendar year. This benefit returns to normal depreciation starting in 2009 (5 year depreciation schedule). Both laws implemented by the IRS will force pharmacies to purchase/upgrade POS systems in the 2008 year if they want to remain compliant with the new IRS regulations.
1. IIAS - Inventory Information Approval System. Beginning in 2009, the IRS is requiring all pharmacies to have implemented an IIAS compliant POS system if they want to continue accepting FSA (Flexible Spending Account) debit/credit cards. These credit cards are issued to employees of companies who have elected to withhold a portion of their pay in a non-taxable Flexible Spending Account or Health Savings Account (HSA).
a. To date, most pharmacies and retailers accept these credit cards without acknowledgement as they are branded as normal VISA or MasterCard credit cards. The IRS is now implementing a qualifying requirement, similar to the Food Stamp program, which designates eligible items that can be purchased with the FSA card. Non-eligible items will have to be paid for with a different form of payment. A IIAS compliant POS system must be able to maintain this eligibility list, have the functionality to separate the items and perform a split tender for eligible versus non-eligible items. The system will also be required to produce audit reports that adhere to IRS specifications and maintain five years of audit history.
b. If a retailer or pharmacy does not have an IIAS compliant POS system on January 1, 2009, they will no longer be able to accept FSA debit/credit cards.
c. Pharmacies will risk losing existing customers and sales to pharmacies who have implemented an IIAS system beginning January 1, 2009.
d. Visa has an established marketing campaign targeted towards every FSA/HRA cardholder. This marketing program educates cardholders on IIAS requirements and compliant merchants.
2. Economic Stimulus Plan (ESP) of 2008 - The President signed into law the ESP on February 13, 2008. This act returns the 50% Bonus Depreciation for the 2008 year and also increases the Section 179 expense purchases maximum allowance to $250,000.00. This will allow a pharmacy to expense a point of sale system purchase in the 2008 year and reduce their tax liability.
Related Articles
A Handheld Pos Scanner Buying Guide
By: Michael Singer | 28/03/2007 | Business
Each day, billions of products are scanned at retail store checkouts. These retail establishments include grocery stores, department stores, clothing stores, jewelry stores, dollar stores, and much more. If you own one of these establishments, there is a good chance that thousands, if not millions, of items could be scanned...
POS Services That Should Come Standard With Your POS Purchases
By: Frank Yaconis | 27/07/2007 | Management
Are you a retailer who is looking outfit your supermarkets or department stores with POS equipment or are you simply looking to update your POS equipment? If you are, you will want to find a POS supplier to make your purchases from. When doing so, there is a good chance...
Inventory Collection Devices: The Perfect Addition To Your Current POS Products
By: Megan Stansfield | 23/06/2007 | Computers
Are you a retailer? If you are in the business of operating a profitable retail store, such as a supermarket or a department store, no matter how large or small your establishment is, you are. When it comes to running a retail store or even a chain of them, many...
Important Features in Epos Software
By: Andrew Turner | 19/11/2007 | Small Business
Businesses are always looking for new ways to streamline their operations, keep them secure and analyze data to maximize returns.
How Choosing The Right Pos Supplier Can Give You A Larger Return On Your Investment
By: Maria Sanchez | 23/06/2007 | Business
Has your retail business achieved success? Many new retailers are often originally unsure as to the success of their business; therefore, many try and limit expenses when first getting their business off of the ground. If you were one of those retailers, but you can now see a long, profitable...
Pos Equipment: Certified Pre Owned Or Brand New, Which Should You Buy?
By: Frank Yaconis | 25/07/2007 | Management
Are you an established retailer who is looking to update and replace your current POS equipment, such as your POS cash registers? If you are looking to do so, you should know that you have a number of different options. Two of your most common options include certified pre owned...
Increasing Sales With a Point of Sale System
By: chester ritchie | 12/05/2008 | Information Technology
New features found in next generation pos systems help retailers increase sales.
Do You Need To Replace Your Current Pos Equipment?
By: Pat Madilla | 25/07/2007 | Management
Are you currently the owner and operator of a successful retail establishment? If you are, you may be afraid to make any changes. For many business owners, especially those who are relatively new to business management, change is something that they are unsure about, as it may have an impact...
Got a Question? Ask.
Ask the community a question about this article:
Frequently Asked Questions
Can you convert/rollover from 403b to 401a internally?
By: Lynsey | 20-06-2008
Can you internally convert or rollover a portion of your existing UofA 403b into your exisiting UofA 401a?
Can I exclude the Dependent FSA dollars from my ...
By: AmitB | 07-04-2008
Can I exclude the Dependent FSA dollars from my taxable income if my spouse is not working?
Finding someone in the Country
By: ManlyMan13 | 06-04-2008
I'm trying to find someone who is 13 years old who could be anywhere in the U.S.. I also don't want to pay for it. The only information I know about her is her name. I also haven't seen her since 4th grade...how do I find her???
Real estate
By: cheryl888 | 03-04-2008
What is a quick close sale in real estate
What's yours fav. sex position??
By: Chantelle | 11-02-2008
What's yours fav. sex position??
Shaved or un-shaved?guys only.
By: madiiroxx | 07-02-2008
ok, so guys, do u prefer if girls shave their pubic area's, or dont, which is better for u all in sex???
Q&A Powered by:
Latest Software Articles
Personalize Your Desktop With Wallpapers
By: Rober Ron | 19/07/2008
It is a common sight that office computers bear the company’s logo as their wallpapers. On the other hand, computers at home use the pre-installed wallpapers like the image of nature. But an exciting person like you does not want to stick to the traditional images of wallpapers.
More Desktop Wallpaper Selections
By: Rober Ron | 19/07/2008
Using desktop wallpapers would not help make your computer achieve a more optimized performance. Though it does not do any significance on how your computer works, many are still hooked to the free desktop wallpapers offered in the internet today.
Free Desktop Wallpapers
By: Rober Ron | 19/07/2008
Computers all look alike. And because you want to set your very own computer apart from the others, you search for ways on how you can improve it. Then one day, you learned the latest trend among computer owners today—the use of desktop wallpapers.
Finding the Perfect Wallpaper the Easy Way
By: Rober Ron | 19/07/2008
Looking for new desktop wallpapers is no longer a tedious job. You don’t have to move mountains just to use the wallpaper of your choice. Instead, with just a few clicks you can now find and avail of the free desktop wallpapers. And presto! You now have a more customized desktop.
Desktop Wallpapers
By: Rober Ron | 19/07/2008
Once you open your desktop, it is the blank and uninteresting look of the monitor that first catches your eyes. And during the long hours of work, the blank screen provides no soothing effect to your eyes and spirit.
Desktop Customization Through Free Wallpapers
By: Rober Ron | 19/07/2008
You are trying to beat the 8 o’clock rush hour because you don’t want to be late at work. This could not be the situation if you did not burn the midnight oil trying to finish your office report. Before you went to sleep, you set the alarm hoping that it would be your shining armor in waking you up but to no avail, your alarm doesn’t went off. So here you are, running with all your might just to make it on time before your boss gives you another nasty look.
Beautify Your Desktop Computer
By: Rober Ron | 19/07/2008
Though computers are one of the most important technological breakthroughs today, there still remains a fact that this machine is dull and boring. They just sit in the corners of the room and are only noticed once you are about to use them.
Be One With the Stars With Bollywood Wallpapers
By: Rober Ron | 19/07/2008
Movie stars invade every aspect of the world. You not only see them in movies, commercials, posters, internet, and tabloid. But wait, you can also be with these famous superstars at any time of the day as desktop wallpapers also feature the familiar faces of movie stars. Wallpapers not only feature Hollywood superstars but you can also find Bollywood wallpapers today.
Computers 
