FICA Refund Information
The 2010 IRS announcement states that medical residents are exempt from FICA taxes based on the student exemption for certain tax periods.
Children’s engaged tax and legal experts to better understand the complex issues relevant specifically to FICA refunds for Children’s residents. We offer the following information provided by our experts to best inform you about the process followed by Children's in 2010, and your options regarding refunds.
Please note that registered letters have been sent out to all former Children’s Medical Center residents who were residents during the time period 1995-2005. These letters were sent to the mailing list provided by the UT Southwestern resident alumni department, unless residents have provided Children’s with other specific contact information recently via telephone message, email or the Children’s website. These letters were sent with a return receipt requested.
Children’s residents during 1995-1999:
When the IRS announcement was made in 2010, Children’s filed a claim requesting a refund of FICA contributions made by Children’s on behalf of their residents for the IRS-designated 1995-1999 residency timeframe. At that time, while not legally obligated to do so, Children’s made every reasonable effort to contact each resident who had been employed at Children’s from 1995-1999.
Letters were sent with information on how to file for a FICA tax refund on your own behalf, or how to grant Children’s permission to file on your behalf. Nearly half of those contacted provided the required signed consent to Children’s authorizing us to file on their behalf.
At that time, in addition to filing on behalf of those residents who granted permission, Children’s also filed on its own behalf to request refunds of the matching FICA contribution made by Children’s for each resident. Of those residents who did not respond or whom Children’s could not locate, some may have chosen to file a claim for refund on their own. Residents who chose not to file for a FICA tax refund through Children’s or on their own have those FICA contributions remaining in their federal retirement contribution accounts.
Per the expert advice given to Children’s, for those residents who did not respond to the 2010 correspondence from Children’s about filing a consent through Children’s or did not file on your own, the IRS is taking the position that it is too late for you to individually file a Claim for Refund. However, Children’s will assist residents who desire to challenge this IRS position, and offers for download the required IRS Form 843, the Claim for Refund and Request for Abatement and the instructions to properly fill out Form 843, to help you begin that process. Our experts do emphasize that while you do have the right to file for a possible refund of FICA payments, there is absolutely no guarantee that the IRS will agree and grant the refund.
Children’s residents during 2000-2005:
The 2010 IRS announcement also covered a second timeframe, impacting individuals employed as residents during 2000-2005. For this time period, Children’s elected not to file for an institutional refund on FICA taxes paid on resident wages. Children’s was not obligated to notify residents from this time period of their opportunity to file for refund. However, residents during that time period were able to have filed a claim for refund on their own. The choice of Children’s not to file for a refund in no way impacted any resident’s choice to request a refund during the specified application period.
Per the expert advice given to Children’s, as no claim for refund was filed by Children's for this period of time, unless you individually filed a claim for refund, the IRS takes the position that the statute of limitations has run out on any claim you might file.
However, as with the residents during the 1995-1999 time period Children’s will assist 2000-2005 residents who desire to challenge this IRS position, and offers for download the required IRS Form 843, the Claim for Refund and Request for Abatement and the instructions to properly fill out Form 843, to help you begin that process. Our experts do emphasize that while you do have the right to file for a possible refund of FICA payments, there is absolutely no guarantee that the IRS will agree and grant the refund.
Instructions for completing Form 843
Instructions for completing Form 843
Claim for Refund and Request for Abatement
The IRS Form 843, Claim for Refund and Request for Abatement, is available here for download. If you would like to attempt to obtain a refund of the FICA taxes deducted from your wages during your residency employment at Children’s Medical Center Dallas, you will need to complete and submit a Form 843 to the IRS. Please note the following specific instructions for proper completion of the form (the IRS-generated instructions for completing this form are also available here for download).
Instructions for Medical Residents Filing a Form 843 for FICA Refunds:
A separate Form 843 must be filed for each tax period for which refund is sought.
The resident also must include with the Form 843 a statement setting forth whether the resident has taken the amount of the over collection into account in claiming a credit against, or refund of, his income tax, and the amount, if any, so claimed. Reg. 31.6402(a)-2(b)(2)(ii).
Along with the Form 843, the IRS requires you provide a statement indicating information listed below. The IRS indicates that it would be best if this statement were prepared and provided by the employer. Children’s stands ready to generate the required statements for each Resident who requests they do so (follow this link to request your statement). The required information that the IRS requires, and that Children’s stands ready to provide, includes:
The amount, if any, the employer has repaid or reimbursed you for excess taxes withheld.
The amount, if any, of credit or refund claimed by the employer or authorized by you to be claimed by the employer.
A declaration that this statement is made in support of a claim against the United States to be filed by the resident for the refund of employee tax paid by Children’s to the IRS.
Children’s tax identification number
The name and account number of Children’s
The resident must provide a statement which indicates (a) the period covered by the return or schedule for which refund is sought, (b) the amount of remuneration that was actually reported as wages for such resident and (c) the amount of wages which should have been reported for such resident. The regulation does not require any specific form for submitting this statement.
The resident should mail the Form 843 and accompanying statements to the following address:
Department of the Treasury
Internal Revenue Service
Ogden, UT 84201-0005
Obtaining statements to complete filing:
Obtaining Children’s Written Statements to Complete Resident Filing of Form 843:
To obtain the required written statements from Children’s Medical Center, please select the following link: “Request Form 843 Statement from Children’s” and provide the requested information required to generate your specific statement.
Children’s will issue to you this statement within 10 days of receiving your request. If you require further information, please send an email with your detailed information and your question to firstname.lastname@example.org.
Please note that even if you have not or do not receive a refund for FICA taxes paid during your residency years, those funds remain in your Social Security account for distribution to you at the time of your retirement. In the case of 2000-2005 residents who have not or do not receive a refund for FICA taxes paid, your Social Security account will also include the matching Children’s FICA contribution funds.