FICA Refund Claims and Consents: A Brief History

In the late 1990s, the University became aware of the opportunity to file FICA tax refund claims on behalf of its medical residents. The deadline for 1995 claims was April 15, 1999 – this was the first set of claims the University was able to file. The University was not legally permitted to file claims for prior years.

In early 1999, the University sent a consent form with an explanatory cover letter to each of the addresses it had for those who had been in residency during any part of 1995. These forms sought the permission of the medical residents to obtain the refund of FICA taxes on wages paid while a resident. The University followed the same procedure for the succeeding years until 2006, when it filed claims for 2002 in April and then filed a lawsuit to recover the claimed refunds in July. The University then filed claims for 2003, 2004, and 2005 in November 2006, after again having sent consent forms and cover letters to the addresses it had for all those in residency during any part of those years. The claims for those years were then added to the lawsuit.

In late 2007, the University sent notice of the lawsuit to the addresses it had for all those who had been in residency for any part of 1995 through 2005. When any of these notices were returned as undeliverable, the University tried to find more current addresses and mailed the notices to the addresses it was able to find.

In late 2008, pursuant to a special procedure created by the court in the lawsuit, the University sent an "opt-in" consent form with an explanatory cover letter to the updated addresses it had for all those who had been in residency for any part of 1995 through 2005. This form provided another opportunity to consent for those who had not consented to the University pursuing their claims for any or all of the years they had been in residency. When any of this correspondence was returned as undeliverable, the University tried to find more current addresses and mailed the "opt-in" form and cover letter to the addresses it was able to find. The University made multiple attempts to mail this correspondence to then current addresses.

In 2009, the University established this web page with copies of the "opt-in" consent form and the cover letter and other information about the refund claims. This web page also requested that Medical Residents provide their updated addresses.

With the permission of the Department of Justice, the deadline for medical residents to submit "opt-in" consent forms was extended through March 31, 2011.

In 2012, as a result of a settlement with the Department of Justice, the University processed payments to former medical residents who consented to the filing of FICA tax refund claims for periods from January 1, 1995 through March 31, 2005.

The IRS has transferred to the University the consenting* medical residents' share of FICA taxes withheld in connection with wages paid from 1995 through the 1st quarter of 2005, and interest on those amounts.

The University sent consenting* medical residents payments for their share of those FICA tax refunds with interest. Again, the period covered by these refunds is January 1, 1995 through March 31, 2005. The University prepared and filed Form 1099-INT for the interest portion of the payment. In January 2013, the University mailed this form to medical residents who received payments.

The University will also file corrected payroll tax returns for each year with the Social Security Administration adjusting Social Security and Medicare wages and taxes. This filing will not result in medical residents having to file amended tax returns.

*Consenting residents are those from whom the University received written consents on or before March 31, 2011. If you did not consent on or before that date, you will not receive a refund.

The University has followed the instructions of the court and the Federal Government in seeking, obtaining, and paying refunds for consenting medical residents. The University has no authority or ability to seek additional refunds for those who did not consent for any or all periods of their residency from January 1, 1995 through March 31, 2005. Former medical residents with questions or concerns are encouraged to contact the IRS for more information.