N659Remark Code (RARC)Active
N659 Remark Code - Exempt from Sales Tax
The N659 remark code indicates that the item in question is exempt from sales tax. It serves to clarify that the adjustment related to the sales tax was made because the billed item does not incur this additional charge.
How It Relates to the Denial
The N659 remark code typically accompanies adjustments related to claim payment amounts that include sales tax. This combination signals that the payer has applied an exemption, thus not applying sales tax to the item billed.
Common Scenarios
1A medical supply company billed for surgical gloves and received an adjustment indicating a reduced payment due to sales tax. The remittance included the N659 remark code.
→ The N659 remark clarifies that the surgical gloves are exempt from sales tax, which justifies the adjustment and indicates that no sales tax should have been charged.
2A provider billed for a non-taxable service, such as a preventive health screening, and received a remittance that shows a payment adjustment with the N659 remark code.
→ In this case, the N659 remark indicates to the provider that the service billed is exempt from sales tax and explains why the total payment reflects this adjustment.
3A pharmacy submitted a claim for a specific medication and the remittance indicated a lower payment amount along with the N659 remark code.
→ The N659 remark suggests that the payment reduction is due to the medication being exempt from sales tax, clarifying the reason for the adjustment.
What to Do
- Review the claim adjustment reason code to understand the context of the payment change.
- Confirm that the item billed is indeed exempt from sales tax as stated in the N659 remark code.
- Ensure that future claims for similar items reflect the exemption to avoid unnecessary adjustments.
What to Check
- The claim adjustment reason code that accompanies the N659 remark for context on the payment reduction.
- The sales tax exemption documentation relevant to the items billed.
- State or local tax regulations to verify the exemption status of the billed items.