PSW Benefit Resources Insurance Services

IRS Delays Implementation of Inventory Information Approval System (IIAS)

Great News!! Today, the IRS released Notice 2008-104, which delays the need for all pharmacies and drug stores to implement an Inventory Information Approval System (IIAS) or certify that 90% of their gross receipts were derived from the purchase of eligible medical expenses in order for payment cards to be used at their locations.

The notice delays the impact of this from January 1, 2009 to July 1, 2009. Therefore, participants can continue to use their payment cards at all pharmacies and drug stores up until July 1. Substantiation continues to be required for all transactions that are completed at merchants without an IIAS in place. Attached is a copy of this notice.

IRS Notice 2008-104