The Greatest Impact Of Tax In Clinical Research

By Arpeeneh Adamian, Senior Director, Tax

The clinical research industry is heavily regulated for obvious reasons, but taxation is often overlooked when considering regulatory compliance. Participants in clinical trials are frequently unaware of the potential tax implications of receiving payments during the study.

Unfortunately, payments received for participation are considered taxable income. When these payments exceed $600 in a tax year for an individual participant, a Form 1099-MISC must be issued and reported to the IRS.

While managing tax obligations in clinical research can be challenging for sponsors, Clinical Research Organizations (CROs), and sites, it's the participants who bear the greatest impact. They volunteer their time and effort, often sacrificing work, family, and other commitments to advance scientific knowledge. Taxation adds an additional burden and can disproportionately affect already financially disadvantaged populations.

In a recent Site Survey, Greenphire collected site perspectives on taxation in clinical trials and its impact on participants. Several real-life examples were shared by sites and can be accessed by reading the full article below.