FICA Tax Refunds
The IRS has stated that it will begin reaching out to teaching hospitals on or before June 2, 2010 to provide additional information and procedures. If you are eligible for a refund, we will contact you in writing at your last known address and tell you about the next steps in the refund process. At this time, we do not know how long the refund process will take.
If you were a resident or fellow at MHMH prior to 1999, MHMH did not file a refund claim on your behalf. Please consult your personal financial or legal advisor to see if you may be eligible for a refund based upon an individual claim.
If you were a resident or fellow at MHMH after the first quarter of 2005, the IRS' March 2, 2010 announcement does not apply to any medical resident FICA refund claims that may have been filed on your behalf for tax periods ending after April 1, 2005. On April 1, 2005, new federal regulations went into effect stating that medical residents are not exempt from paying FICA taxes. While the validity of these new regulations has been subject to debate and litigation, the IRS has not agreed to refund FICA taxes paid after the first quarter of 2005. However, MHMH has filed refund claims for FICA taxes paid in the last three quarters of 2005 and all of 2006, and it plans to file additional such claims for FICA taxes paid in 2007, 2008, and 2009. Although residents or fellows are free to file their own individual refund claims, all of MHMH's refund claims apply to both MHMH and MHMH's residents and fellows during the relevant time periods.
MHMH has retained The Garden City Group, Inc. ("GCG") as a third party representative to administer the refund process. GCG began mailing notification letters and consent forms to residents eligible for FICA tax refunds in mid-October. Please follow the instructions in the letter and return your completed consent forms to The Garden City Group, Inc., PO Box 91204, Seattle, WA 98111-9304. If you would like to update your mailing address, believe that you are eligible for a refund but have not received a letter from GCG, or have any additional questions, please send an e-mail to scalland@cov.com.
