North Shore-LIJ Medical Resident FICA Refund Claim Status Update – October 18, 2013

We are pleased to announce that refunds have been processed for all those employees who submitted timely consent forms, with the exception of Staten Island University Hospital, which still has pending refunds from the Internal Revenue Service (IRS). Please review the chart for information on covered years and payments made.

Keep in mind that the interest the IRS is paying on these refunded taxes is taxable in the year in which it is received, regardless of whether you receive a 1099-INT from the system. If the interest you received totals $600 or more, North Shore-LIJ will file a Form 1099-INT, Interest Income, with the IRS and provide a copy to you in January 2014 for the 2013 tax year.

Please be advised that although you were informed previously that the health system may seek refunds for FICA taxes paid for services performed by Medical Residents after April 2005, the IRS has denied our claim (see the Supreme Court decision in Mayo Foundation for Medical Education and Research v. United States). Accordingly, consistent with the Supreme Court’s ruling, the health system will not seek any further refunds on behalf of Medical Residents, and no additional payments will be paid based on the Medical Residents FICA issue.

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