IRS Refunds of Medical Resident FICA Claims

CMS announced in May that it is starting to pay hospitals who filed FICA tax refund claims on behalf of the hospitals and residents for years prior to 2005. UAB did not file refund claims for years prior to 2005 and is not receiving any refunds for itself or its residents.

Although UAB filed refund claims for 2006-2009, we expect these to be denied because the Supreme Court upheld the IRS’s 2005 regulation stating that residents must pay FICA tax.  We will continue to monitor this issue and report any changes on the website.

Read more on the Supreme Court decision