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Medical Resident FICA Forum
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IRS Reponds to My FICA Refund Request

Some background: I was a medical resident in Los Angeles in 2005, 2006, and 2007, and have been deligently and methodically asking the IRS to refund me the deducted FICA taxes since 2008. It took about a year for the IRS to consider my request complete and valid -- they kept asking for various pieces of documentation, then at one point claimed that that had lost some paperwork and so I would need to resubmit from scratch -- but then finally, in 2009, everything was apparently in order and the IRS began considering/researching my request. Every couple of months I would receive a letter indicating as such, and every three months I would write them a letter to ensure my claim was kept alive. Then, earlier this year, I was informed that my request was transferred from the IRS's Fresno, California office to their Philadelphia office. Shortly thereafter, I received a letter from the IRS denying my request (because I was employee, not a student) and closing the case.

My question: how do I now keep my claim alive while this issue continues to work its way through the courts? Must I go through the huge hassle of starting all over? Or can I somehow respond to the IRS' latest communication in a way that will "keep my file open," so to speak. I don't want to do nothing, and let time to go by, and then if the courts eventually rule against the IRS, I find that the statue of limitations has expired and I have no recourse.

Thank you for any advice/guidance here!

Zip Code: 90210

Re: IRS Reponds to My FICA Refund Request

Great question.

Please check out my article at: http://www.mdtaxes.com/news0410.html#2, where the IRS addresses that they will be procssing claims for pre-4/1/2005 FICA taxes only.

I do think that filing refund claims each year is the only way that you might get back money down the road if the IRS keeps losing court cases and needs to refund these FICA taxes at a later date. Once the Statute of Limitation passes, then you most likely won't be able to file a refund claim, even if the rules subsequently change. That's why the IRS waited until 2010 to announce that they will begin processing the pre-2005 refund claims, since it became too late for new claims to be filed. Very tricky of them.

Zip Code: 01801

Re: IRS Reponds to My FICA Refund Request

I did my residency during 1999-2004. I guess I don't have a chance to file a claim individually now if my emprolyer did not file the refund claim timely. But thanks for the effort.

Ben Liu

Zip Code: 14534