ALEXANDRIA, Va. — In a statement submitted to the House of Representatives Small Business Committee, the National Association of Chain Drug Stores further emphasized its support of legislation to repeal the 1099 business tax form reporting requirements. NACDS indicated that such requirements would force pharmacies to spend inordinate amounts of time and human resources on additional paperwork, leading to less time alloted to helping patients with their healthcare needs.
"While NACDS shares the concerns of the broader business community about the additional administrative burdens and costs associated with the 1099 reporting requirement, chain pharmacies, as healthcare providers, are also deeply concerned the mandate could hinder the delivery of patient care," NACDS said in its statement. "The 1099 mandate is a prime example of an administrative mandate that will interfere with pharmacies' ability to furnish convenient and cost-effective health care."
The 1099 business tax form reporting requirements were enacted as part of the Patient Protection and Affordable Care Act. In addition to submitting the statement, NACDS applauded the panel for convening a hearing to address the problematic issue for businesses, including pharmacy.
The provision would require businesses to report to the Internal Revenue Service on a 1099 form total payments in excess of $600 in one year to an individual vendor. According to NACDS, this dramatically would increase data collection and reporting requirements, putting a tremendous and costly administrative burden on accounting departments in every organization in America, including neighborhood pharmacies.
"Pharmacies are the face of neighborhood health care and are a highly trusted source of healthcare information, products and services," the letter continued. "The 1099 reporting requirements will force pharmacies, whether large national companies or small local drug store chains, to spend inordinate amounts of time and human resources on additional paperwork. This will take away from the time that pharmacies and pharmacists have to help patients address their medication and other healthcare needs."
Last week, the NACDS endorsed an amendment introduced by Sen. Debbie Stabenow, D-Mich., which would lift burdensome reporting requirements affiliated with the 1099 business tax form, which could have limited pharmacist-patient interaction and patient care. The amendment passed in the Senate.