We are pleased to announce that refunds will be distributed during the first two weeks of November. Former Residents of Barnes Hospital, The Jewish Hospital of St. Louis, and Barnes-Jewish Hospital eligible to receive a FICA tax refund will be sent a check via "Return Service Requested" mail to the mailing address currently on file in our records. Prior to 12/31/12 refund recipients will also be mailed a Form W-2c, "Corrected Wage and Tax Statement" for each year covered by the refund. Form W-2c reflects changes in Social Security and Medicare earnings resulting from the FICA tax refund. By early 2013 refund recipients will also be mailed 2012 Form 1099-INT, "Interest Income," reporting the interest income component of the refund. While the refund of FICA taxes is not subject to federal income taxes, the accumulated interest portion of the refund is taxable for federal income tax purposes for the 2012 tax year. The interest amount reported on Form 1099-INT will also be stated on the check remittance.
It is extremely important that we have your current mailing address on file. If you moved since the last time you provided us with a mailing address, or if you simply want to verify your address with us, please email your name, mailing address and last four digits of your Social Security number to
Barnes-Jewish Hospital began filing FICA refund claims on behalf of the hospital and our former Residents of Barnes Hospital, The Jewish Hospital of St. Louis, and Barnes-Jewish Hospital over thirteen years ago. Our claims covered the period of January 1995 through March 2005 and were fully approved by the IRS without disallowances, ensuring that our former Residents receive the maximum refund to which they are entitled. We are pleased the process has reached such a favorable conclusion.
In May 2012 we were informed by the IRS that our refund claims had been fully approved (see 5/9/12 update below) and refunds would be received within twelve weeks. Some of the funds have been received, but the remaining amounts have yet to be delivered, and the IRS is unable to provide a time frame for receipt of the delayed amounts. As soon as all funds have been received, individual refund checks will be mailed promptly. This website will be updated as more information related to the timing of the refund checks becomes available.
It is extremely important that we have your current mailing address on file. If you moved since the last time you provided us with a mailing address, or if you simply want to verify your address with us, please email your name, mailing address and last four digits of your Social Security number to
FICARefund@bjc.org.
FICA Refund: Status Update for Former Residents - May 9, 2012
On May 7, 2012 Barnes-Jewish Hospital received notice from the Internal Revenue Service that our FICA refund claims covering the period January 1995 through March 2005 had been approved for payment. The claims were approved with only very minor adjustments. Specifically, there were changes in the claimed refund amount for: (1) individuals who claimed and received refunds on their own behalf; and (2) individuals or estates with other liabilities to the Internal Revenue Service where the FICA refund was applied to offset such amounts.
By late summer 2012 the IRS will issue refund payments to BJH for each of the calendar quarters covered by our claims. Each payment will include statutory interest the IRS is required to pay on tax refunds. The interest is calculated from the date of the original claim through the date of actual payment. Upon receipt of the IRS refund payments we will review the interest calculations, aggregate the amounts by individual, and issue a single all-inclusive check to each eligible former Medical Resident who previously provided written consent to participate in the refund process. Once we receive all payments from the IRS, this website will be updated to provide you with a more specific time frame for when to expect your refund check.
Following the mailing of your refund check, Barnes-Jewish Hospital will file Form W-2C, Corrected Wage and Tax Statement, with the Social Security Administration (SSA) on your behalf for each calendar year in which you receive a refund. You will receive a copy of each W-2C filed. Any adjustments will be reflected on your SSA lifelong earnings record. In addition, you may also receive a Form 1099-INT, Interest Income. Barnes-Jewish Hospital is required to file Form 1099-INT with the IRS and provide a copy to you if the interest on your refund exceeds $600 in a calendar year.
Your refund will include your share of the FICA taxes paid plus interest. The refunded FICA taxes are not taxable; however, the interest portion of the refund is taxable to you. The interest is taxable whether or not you receive a Form 1099-INT, and must be reported on your individual income tax return. Please consult your personal tax advisor if you have questions regarding the reporting of your FICA tax refund.
It is extremely important that we have your current mailing address on file. If you moved since the last time you provided us with a mailing address, or if you simply want to verify your address with us, please email your name, mailing address and last four digits of your Social Security number to
FICARefund@bjc.org.
Barnes-Jewish Hospital began filing FICA refund claims on your behalf over thirteen years ago. We are pleased the process has reached a favorable conclusion.
Status Update - March 9, 2012
- We have been informed by the IRS that our refund claims have progressed to the final review phase, but an estimated completion date could not be given.
- Even after the claims are fully reviewed and approved, we still anticipate waiting another 8-12 weeks before refund payments will be received from the IRS.
- If you submitted a written consent form and your mailing address has since changed, please make sure we have your current mailing address. Email your address information and any questions to FICARefund@bjc.org.
Status Update - November 1, 2011
- The IRS has initiated a review of our FICA refund claims. We were contacted with requests for additional information, to which we promptly responded. This review is the normal process for these claims. It remains uncertain how much time the IRS will require to fully complete their review and process refunds.
- Several former Medical Residents submitted written consent forms after our published deadline of 2/28/11. The IRS has informed us that they will accept late claims that are now on file with BJH, but no further claims will be accepted. We submitted the late claims to the IRS through an amended claim, and will inform the late filers if their claim has been accepted.
- If you filed an individual refund claim with the IRS, that claim will be processed separately and you will be notified by the IRS as to your refund amount, if any. Refunds you receive from BJH will reflect adjustments made by the IRS to recognize refunds paid on individual claims.
Overview
Many inquiries have been received from former residents and fellows on how to receive a refund of FICA taxes paid during residency. If you were a resident or fellow on the Barnes Hospital, Jewish Hospital, or Barnes-Jewish Hospital payroll between January 1, 1995 and March 31, 2005, you may be eligible for a refund of FICA taxes withheld from your stipends during those periods.
On March 2, 2010 the IRS made an administrative determination to accept the position that residents are not subject to FICA taxes based on the "student exception" for tax periods ending before April 1, 2005, when new regulations went into effect. The IRS will honor timely filed refund claims for FICA taxes paid by residents during tax periods prior to April 1, 2005. For many years, Barnes-Jewish Hospital has been timely filing "protective" refund claims for the taxable periods from January 1, 1995 through March 31, 2005. In order to "perfect" those claims, we attempted to contact each qualified resident to obtain individual consents to participate in the refund process.
Status
Consent letters, instructions and forms were mailed to all qualified residents in November 2010. The response rate was excellent, but it is possible that some individuals might not have received or been forwarded the information. In an effort to contact as many eligible residents as possible, all individuals not responding to the initial November mailing were sent a second letter in January 2011, this time using a different source for the addresses. The deadline for responding to the second mailing was 2/28/11. All consents received prior to the 2/28/11 deadline were included in our final claim totals. On 3/18/11 we submitted our perfected FICA refund claim to the IRS. The IRS will now review the claim, but we expect that to be a lengthy process. This site will be updated when we have additional information as to when the claims may be processed.
Consent forms received after our 2/28 published deadline can not be included in the FICA refund claim, as we have already finalized our claim forms to meet the IRS imposed filing deadline. We will, however, retain all late submissions and will use our best efforts to work with the IRS to include the late consents as we move through the refund process established by the IRS. Ultimately, it is an IRS decision as to whether or not to allow us to amend our filing at a later date.
Since the refund process might take many months, please continue to provide us with any changes in your mailing address. You may email this information to
FicaRefund@bjc.org.
Recent Supreme Court Ruling
On January 11, 2011 the U.S. Supreme Court, in a unanimous opinion, upheld a 2005 Treasury Department regulation that said medical residents are primarily full-time employees, not students. The decision upheld an Internal Revenue Service regulation requiring residents to pay Social Security taxes. The recent Supreme Court decision does not affect the refund claims by Barnes-Jewish Hospital for tax periods 1995 through the first quarter of 2005. We are actively pursuing these refunds and expect to recover them.