Update on Henry Ford Health System (and Horizon) Resident FICA Refund
After years of protracted litigation in various courts across the US, the IRS has made the determination that medical residents are exempt from FICA taxes for the tax periods ending before April 1, 2005. Accordingly, HFHS is in the process of pursuing these FICA tax refunds from the IRS and is working on obtaining refunds on its behalf as well as on the behalf of the Medical Residents.
Within the next few days, all affected medical residents at HFHS and Horizon will be receiving a letter and consent form. If you want to like to participate in HFHS FICA Refund initiative, you MUST complete the consent form, sign it and return it to the specified address by August 16, 2010. We have engaged Deloitte Tax LLP to assist in this initiative. Inquiries and any related matters can be addressed to Deloitte Tax LLP directly.
More information will be provided through this site as the process progresses.A contact number and email will be provided in the consent package through which you can ask any questions you may have that are not adequately addressed below.
The Official IRS Announcement is as follows:
The IRS will, within 90 days, begin contacting hospitals, universities and medical residents who filed FICA (Social Security and Medicare tax) refund claims for these periods with more information and procedures.
Employers and individuals with pending claims do not need to take any action at this time.
The Internal Revenue Service has made an administrative determination to accept the position that medical residents are excepted from FICA taxes based on the student exception for tax periods ending before April 1, 2005, when new IRS regulations went into effect.
