Former Mount Sinai Residents May Be Eligible for FICA Tax Refunds

Individuals who wish to receive their FICA refund through Mount Sinai must complete and return an Employee Consent Form.

New York
 – August 24, 2010 /Press Release/  –– 

(New York, NY – August 24, 2010) Former medical residents of The Mount Sinai Hospital/School of Medicine who paid Federal Insurance Contributions Act (FICA) taxes during the period January 1, 1995 to March 31, 2005 may be eligible for refunds.

The Internal Revenue Code states that services performed by students are exempt from "employment" for this purpose and, therefore, amounts paid to them are not subject to the FICA tax. FICA includes both Social Security and Medicare taxes.

On March 2, 2010, after years of litigation, the IRS announced that it would honor refund claims that were timely filed for periods prior to April 1, 2005, on behalf of medical residents based on the "student exception." (Later periods are not yet being refunded because the IRS issued regulations effective April 1, 2005, that specifically stated that medical residents are not "students." Those regulations are still being contested.)

Mount Sinai timely filed refund claims on behalf of its residents for periods prior to April 2005 and has established a process to obtain refunds plus statutory interest from the IRS. Individuals who wish to receive their FICA refund through Mount Sinai must complete and return an Employee Consent Form.

Mount Sinai has engaged the accounting firm Ernst & Young to assist in the refund process. Packages providing additional information were mailed at the end of August to medical residents who worked at Mount Sinai and who paid taxes for the covered periods. Additional information can also be obtained by visiting Ernst & Young's website at, emailing, or calling 877-800-3830, Monday through Friday, 9:00 AM to 6:00 PM EST. Eligible individuals can also contact Kevin Farrell of Mt. Sinai at or 212-731-3050 for more information.

The Mount Sinai Hospital - Employee Consent Form

About The Mount Sinai Medical Center

The Mount Sinai Medical Center encompasses both The Mount Sinai Hospital and Mount Sinai School of Medicine. Established in 1968, Mount Sinai School of Medicine is one of few medical schools embedded in a hospital in the United States. It has more than 3,400 faculty in 32 departments and 15 institutes, and ranks among the top 20 medical schools both in National Institute of Health funding and by U.S. News & World Report. The school received the 2009 Spencer Foreman Award for Outstanding Community Service from the Association of American Medical Colleges.

The Mount Sinai Hospital, founded in 1852, is a 1,171-bed tertiary- and quaternary-care teaching facility and one of the nation’s oldest, largest and most-respected voluntary hospitals. In 2009, U.S. News & World Report ranked The Mount Sinai Hospital among the nation’s top 20 hospitals based on reputation, patient safety, and other patient-care factors. Nearly 60,000 people were treated at Mount Sinai as inpatients last year, and approximately 530,000 outpatient visits took place.

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