2012 - 3rd Quarter

Medical Resident FICA Refunds

By Brian Sanders, Director of Payroll

The University of Missouri received notification on June 29, 2012, that the IRS will honor claims for refunds for qualifying medical residents, and refund checks will be issued to the University of Missouri in about twelve weeks.   In December 2010, the University of Missouri applied for refunds of FICA taxes on behalf of medical residents for tax periods from January 1, 1995 through March 31, 2005.  The University of Missouri filed the claims for refund in response to the March 2, 2010, announcement from the IRS that it had 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.

The University of Missouri will notify the medical residents in a separate correspondence who returned a consent statement permitting the University of Missouri to file the refund claims on their behalf.  The IRS will add statutory interest, so the amount of refund to each medical resident will be determined after all of the refund checks to be issued by the IRS in about twelve weeks have been received.  If the amount of statutory interest amounts to $600 or more to a medical resident, the University of Missouri will issue a 2012 Form 1099-INT to the medical resident.  Medical Residents will receive a Form W-2C for each calendar year in which their FICA wages are reduced.  In most cases, the Form W-2C will not require the medical resident to file an amended income tax return, but the University of Missouri cannot provide individual tax advice.  Consult with a qualified tax specialist for more information.

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