With Tax Day in the US just behind us, we wanted to spotlight our in-house tax expert, Arpeeneh Adamian. A tax role is crucial in any organization, particularly in a fintech company distributing clinical trial reimbursements and stipends. Arpeeneh simplifies the taxing world of taxation for sponsors, CROs, and sites by clarifying their roles and responsibilities, such as: “Who is responsible for filing Form 1099s for clinical trial participants?” Here’s a brief overview of Arpeeneh’s background and expertise. Could you tell us more about yourself? I am a licensed CPA with 13 years of experience in the field. I hold both a Bachelor’s and Master’s Degree in Accountancy from the University of Denver. My professional background encompasses tax compliance and tax accounting, consulting, and business advisory services. Prior to joining Greenphire, most of my career was in public accounting and providing tax services for several companies from the tech sector. These experiences allowed me to develop a deep understanding of corporate taxation and the Internal Revenue Code, as well as learn best practices, which I put to good use at Greenphire. I also worked in-house for a publicly traded government contractor, where I managed global taxes and equity based compensation. At Greenphire, I am in the unique position to align the best interests of each of our stakeholders in the current tax compliance environment, as well as apply this experience in advocating for change where it is much needed to remove the tax burden on participants and increase diversity in trials. I am passionate about the role I play in achieving the ultimate goal of bringing life-saving treatments to market faster. What sets your role at Greenphire apart? My tax team helps ensure Greenphire and our solutions remain compliant with federal and international laws and regulations while assisting sponsors, CROs, and sites with their compliance needs. This critical role at Greenphire allows me to engage directly with clinical trial sites, sponsors and CROs, understand their concerns, and provide guidance. This fosters strong relationships with our clients and ensures we deliver the best possible service. Moreover, it enables us to swiftly address potential issues, streamlining the research process. What aspects of tax compliance in clinical trials are clients overlooking? While individuals in clinical trials may be familiar with other regulations, they may not be familiar with tax regulations, and the intricacies of taxation can be daunting. Clinical trial staff may require guidance on issues such as taxability and reporting requirements. It is vital for clinical trial personnel to have access to the necessary information and resources to stay current with their tax obligations.
One often-overlooked aspect is determining who should issue a Form 1099 to participants. Clinical trial sites and sponsors frequently grapple with understanding who is responsible for reporting compensation to clinical trial participants. If the total payments made during a tax year exceed $600, an IRS Form 1099 is required as a record for patients to include with their tax return preparation. Compliance errors may arise when it is unclear whether the site or sponsor should report this information. Since clinical trial sponsors must be blinded to the identify of participants in their trials, the tax reporting should be defined with each vendor or site making payments. This problem can worsen if neither party has established proper procedures for tracking and filing these forms. To ensure all requirements are met, it is crucial for both the site and the sponsor to have well-defined policies and procedures outlining who will manage this responsibility.
How Does Greenphire Help with These Challenges? At Greenphire, we offer comprehensive tax compliance solutions to sponsors and sites, featuring tools that optimize their financial workflows, including patient reimbursements and stipends. Our services help them validate TINs (Taxpayer Identification Numbers), automatically withhold a portion of payments when the TIN is unavailable or invalid, determine taxability, report Form 1099s, and more. By harnessing our cutting-edge technology, sponsors and sites can confidently rely on the accuracy and efficiency of their crucial tax processes. Greenphire is more than a technology company; we stand as the trusted expert in the complex realm of taxes. With years of experience and expertise, our team understands the subtleties and complexities associated with taxes. Our seasoned professionals are available to help you navigate compliance issues and establish efficient tax management processes. Next Steps If you are interested in joining a focus group dedicated to improving both current and future practices on trial taxation, please email taxservices@greenphire.com. If you are an individual participant and have questions regarding tax forms you received, please contact 1099@greenphire.com. This article does not constitute tax advice. If you have specific questions regarding your program, please contact a tax advisor.
