Residency

Supreme Court denies FICA tax refund petition

Residency Program Insider, May 1, 2015

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The U.S. Supreme Court denied a petition from the University of Texas seeking a refund of $11 million of Federal Insurance Contribution Act (FICA) taxes assessed against its medical residents.

This leaves the U.S. Court of Appeals for the Fifth Circuit’s decision to deny the refund standing, which stated that medical residents did not meet the definition of “students” and were not exempt from FICA taxes. The university had initially sued the government in 2009 over the $11 million in FICA taxes it believed were mistakenly levied on stipends paid to residents at five of its hospitals.   

Source: Law 360

 



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