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| Issue 5 • October/November 2007 |
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| IRS Section 179 Income Tax Deduction for Year 2007: Up to $125,000 Write-off |
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Did you know that the IRS has extended the Section 179 Federal Income Tax Deduction for 2007? Section 179 allows a company (sole proprietor, partnership or corporation) to expense (deduct from taxable income) a maximum of $125,000 for certain qualifying property.
This means that a qualifying practice can take advantage of the tax savings when purchasing software (including practice management and electronic medical records software) and IT equipment before the end of the year.
IT equipment, such as servers, computers, printers, routers, and fax machines qualify for the Section 179 deduction, along with other types of machinery, furniture, and some storage facilities. Certain leases and finance agreements may also qualify for this deduction.
Before you make any software or equipment purchases, consult your accountant or tax professional for advice and deductibility of Section 179.
For more information about Section 179, visit the IRS website at http://www.irs.gov/publications/p946/ch02.html. |
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| Are You Preparing for the New Tamper- Resistant Prescription Pad Law? |
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On September 29, 2007, President Bush signed the "Extenders Law," delaying the October 1, 2007 implementation date for all paper Medicaid outpatient prescriptions (including over-the-counter drugs) to be written on tamper-resistant prescription pads.
Under the new law, as of April 1, 2008, all written Medicaid prescriptions must be on tamper-resistant prescription pads or paper. This rule does not apply if you call or fax the prescription to the pharmacy, or you use an electronic transmission
(e-prescribing).
According to the Centers for Medicare and Medicaid Services (CMS) and State Medicaid Director, “Tamper-resistant prescription pads will reduce the number of unauthorized, improperly altered, and counterfeit prescriptions.” The new tamper-resistant law impacts all physicians, practitioners and other providers and will be implemented in the following two phases.
Phase One: By April 1, 2008, a prescription must contain at least one of the three tamper-resistant characteristics (see below) in order to be considered “tamper resistant.”
Phase Two: By October 1, 2008, prescriptions must contain all three characteristics. |
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| Tamper-Resistant Characteristics: |
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- One or more industry-recognized features designed to prevent unauthorized copying of a completed or blank prescription form;
- One or more industry-recognized features designed to prevent the erasure or modification of information written on the prescription by the prescriber;
- One or more industry-recognized features designed to prevent the use of counterfeit prescription forms.
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| Tamper-Resistant Prescription Pads and Laser Paper Sources: |
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| If your practice uses electronic medical records software, “tamper-resistant laser paper” is available from many printing vendors in various sizes, such as 8.5 x 11 or 4.5 x 5.5. This paper will allow you to print your EMR prescription on compliant laser paper. |
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| Here are a few online printing sources (make sure your printing vendor meets all Federal requirements): |
> www.formsandchecks.com/SecurityPaper.htm
> www.rxsecurity.com
> www.documentsecurity.com
> www.rxpads.com
> www.nationalrxsecurity.com
> www.prescriptionpaper.com |
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| CMS Sources and Quick Links: |
> www.cms.hhs.gov/pharmacy/downloads/update100507.pdf
> www.cms.hhs.gov/center/intergovernmental.asp
> http://www.cms.hhs.gov/DeficitReductionAct/Downloads/Tamper.pdf
> http://www.cms.hhs.gov/MLNMattersArticles/downloads/SE0736.pdf |
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| Contact the First Insight/First Connections Editor: Donnal@first-insight.com |
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www.first-insight.com