Financial Services

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FICA Information for Former Medical Residents

July 17, 2013

OUHSC has received notification of payment for the Medical Resident ("MR") FICA Refund Claims from the IRS. Once we receive the breakdown of exactly which MR Claims were approved by the IRS we will notify former residents with a letter (a copy of the letter can be found below). MR Claims approved by the IRS will receive a refund of FICA taxes plus statutory interest. The FICA refund is not taxable but the interest portion of the payments is taxable. In order to process payments OUHSC will need a completed W-9 substitute form (see below for link to form). This completed and signed form can be returned to OUHSC via e-mail, fax, or postal mail.

OUHSC cannot process an MR Claim refund until the form is received with all required information.

Once the MR Claims have been processed, OUHSC will send a copy of form 1099-INT for the interest portion of each claim paid to the IRS. Each resident paid interest of $600 or greater will receive a copy as well. Additionally, OUHSC will file Form W-2c, Corrected Wage and Tax Statement, with the Social Security Administration (SSA), and send a copy to each resident for each tax year for which a refund was received. Typically, this does not require that an amended tax return be filed for the years effected, but it is recommended that each resident check with their tax advisor regarding their specific information.

Due to the volume of the refunds being processed, OUHSC staff will not be available to answer questions regarding the amount of individual refunds or when those refunds will be processed. All refunds will be processed on a first come first served basis of when OUHSC receives the fully completed W-9 substitute form.

August 1, 2012

The Internal Revenue Service (IRS) has begun notifying medical schools/teaching hospitals that it has completed its review of their medical resident FICA refund claims for tax periods ending before April 1, 2005. Thus far OUHSC has not received notification from the IRS regarding the claims submitted.

The Internal Revenue Service (IRS) announced on March 2, 2010 it will accept the position that medical residents prior to April 1, 2005 are exempt from FICA taxes based on the "student FICA exception". This decision does not effect medical residents enrolled from April 1, 2005 forward.

In order to be eligible for the refund, a valid refund claim for those time periods had to be filed with the IRS in a timely manner requesting FICA tax-exempt status for medical residents, the so-called "Student Exception" to FICA. The University has worked diligently to file refund claims with the IRS for the period January 1, 1994 through March 31, 2005 and is thus eligible to receive refunds on behalf of the individuals participating in medical residency training programs with The University during that timeframe. 

The University submitted the detailed information requested by the IRS on November 19, 2010, regarding our refund claims. This information included all signed consents provided by eligible medical residents submitted to The University before November 19, 2010.   With an eligible medical resident's written consent, The University of Oklahoma Health Sciences Center can obtain a refund of the FICA taxes that were withheld and paid on the resident's behalf. With this written consent, The University will pay the eligible resident the FICA tax refund plus interest at rates determined by law once the IRS processes the refund requests. The IRS has not released a firm timetable as to when refunds will be issued. Once the refund payments are received from the IRS, The University will send refund payments plus interest to qualified former residents as quickly as possible. Please refer to this webpage for future updates on status of the refund.

Email questions to: ResidentFICAProject@ouhsc.edu

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