Important Information for Medical Residents of Jersey Shore University Medical Center from 2000 - 2005.
Medical Resident FICA Tax Refund ClaimsPlease be advised that Meridian Hospitals Corporation filed claims for refund of social security and Medicare taxes paid on wages earned for services performed by medical residents for tax periods beginning January 1, 2000 and ending March 31, 2005. These taxes are Federal Insurance Contributions Act (FICA) taxes and the claims are referred to as Medical Resident FICA Refund Claims (or MR claims). Please note that WithumSmith+Brown, PC (WS+B) has been retained by Meridian Hospitals Corporation to coordinate the filing of these FICA MR claims.
On March 2, 2010, the IRS announced it would honor the MR claims and thereafter this summer provided information relating to the perfection and filing of these MR claims. After we perfect the Meridian Hospitals Corporation MR claim(s), the IRS will verify the amount of your MR claim(s) and begin issuing refunds plus statutory interest. Please be advised that we cannot receive a refund for you of your individual FICA taxes that were withheld and paid on your behalf unless we have your written consent. If you do not consent to having Meridian Hospitals Corporation obtain your refund, you may be precluded from receiving any refund of the FICA taxes withheld and paid on your behalf because the time period for filing an individual claim for refund with the IRS may have expired.
If you consent, Meridian Hospitals Corporation will pay you your FICA tax refund, plus statutory interest, after Meridian Hospitals Corporation receives the refund from the IRS. The FICA tax refund is not taxable; however, the interest on the refund is taxable to you whether or not you receive a Form 1099-INT, Interest Income. Meridian Hospitals Corporation is required to file Form 1099-INT with the IRS and furnish a copy to you if you receive interest on your MR claim of $600 or more in a calendar year.
In addition, Meridian Hospitals Corporation will file Form W-2c, Corrected Wage and Tax Statement, with Social Security Administration (SSA), and furnish a copy to you for each tax year for which you receive a refund of FICA taxes. In most cases, Form W-2c will show a reduction in your earnings for social security coverage purposes in an amount equal to all the wages you were paid for services performed as a medical resident. Social security benefits are based on your earnings over your working lifetime. Accordingly, based on your personal circumstances, a refund could have a detrimental effect upon disability, survivors, or retirement benefits that you, or your family, are receiving or may seek to receive in the future. If you want information about the effect on your social security benefits, you should contact SSA directly at 1-800-772-1213 (toll free). If you call or visit a Social Security office, please have this letter with you. It will help SSA answer your questions. You might want to review your social security record before and after your refund has been processed. You can use your current Social Security Statement or you can request a copy of your Social Security Statement at the following link: http://www.ssa.gov/mystatement.
To consent to participate in Meridian Hospitals Corporation's FICA MR claim and filing with the IRS and thereafter to receive your share of the refund from Meridian Hospitals Corporation, you must complete this Employee Consent Form and return it to our firm at the address shown at the bottom of the consent form. Your consent form must be postmarked no later than March 18, 2011.
If you have already claimed and received a refund or credit for FICA taxes that were withheld from medical resident wages, or if you filed an individual refund claim for such FICA taxes and that claim is still pending with the IRS, then we will not be able to file your MR claim for the year(s) that you received a refund or credit or have a pending refund claim. This restriction does not apply if you filed a refund claim Page 2 and it was rejected by the IRS. If we can file your MR claims for some years, but not others, check "Yes" for the years you are eligible or "No" for the years you are not eligible on the enclosed consent form.
If you consent to be part of Meridian Hospitals Corporation MR claim and the IRS determines that you are ineligible for a refund because you already received a refund based on an individual claim you filed, the IRS will not refund your share to us and this information may be disclosed to us.
If you have any questions about this letter, please do not hesitate to contact any of the following WS+B tax professionals:
Allison Kimowitz 973-898-9494, Ext. 4468
John Smith 973-898-9494, Ext. 4462
Anthony Panico 973-898-9494, Ext. 4430
Scott Mariani 973-898-9494, Ext. 4420