Medical Resident FICA Refund FAQs
I have not returned my consent form to BMC. Can I still return it and participate in BMC’s FICA tax refund claims?As described below in more detail, you should return your consent form as soon as possible, as the IRS recently informed BMC that it may allow BMC to submit late-received consent forms.
In accordance with IRS instructions, BMC processed all of the timely consents that it received in order to prepare and file final refund claims with the IRS.
However, we have been informed by the IRS that at some point after it begins processing the claims that BMC has already filed and before those claims are finally processed, the IRS may permit BMC to add FICA tax refund claims on behalf of individuals who have submitted late consents. At the point in time that the IRS begins to process BMC’s claims, BMC will request permission from the IRS to submit a final refund claim (the “Final FICA Claims Submission Allowable by the IRS”) in order to add late consenters. To the extent that the IRS exercises its discretion, and permits late consenters to be added to the claims, we will include those late consenters who have returned a signed Consent Form prior to the filing of the Final FICA Claims Submission Allowable by the IRS.
Time is of the essence, as we will not be able to include any additional consent forms received after the Final FICA Claims Submission Allowable by the IRS has been completed. At this time, BMC does not know when the IRS will begin to process the claims or when the Final FICA Claims Submission Allowable by the IRS may be filed.
For instructions on obtaining a copy of your Consent Form and submitting late consents, please see the section titled “Submitting Late Consents to Participate in the Claims” on our Medical Resident FICA Refund Claims page.
I am participating in BMC’s refund claims. When will I receive my refund?
The IRS is responsible for processing the refund claims that BMC has filed. As part of this process, the IRS is expected to review the claims, verify each resident’s eligibility to receive a refund, and, once it has approved the claims, the IRS will issue refunds to BMC for distribution to individual residents. It is unknown how long the IRS will take to complete this process. After the IRS approves and issues the refunds, BMC will distribute individual refund checks to eligible residents who participated in the refund claims. When BMC receives claim status updates from the IRS, BMC will update this website www.bmc.org/fica. If you are participating in BMC’s Medical Resident FICA Tax Refund Claims, it is your responsibility to ensure that the contact information that you provided to BMC remains up to date.
How can I obtain status updates from BMC about the refund claims?
Visit BMC’s website at www.bmc.org/fica for any updates and FAQs.
I am participating in BMC’s refund claims. How much will my FICA tax refund be?
The amount of your refund will depend on your individual circumstances and will be based on the amount of FICA taxes that were withheld from your wages as a resident. You will also receive interest on the taxes refunded.
I am participating in BMC’s refund claims. How much interest will I receive on the refund?
The amount of interest varies depending on when the FICA payments were made. The IRS will calculate the interest on the refund according to IRS regulations, and you will be paid the interest attributable to your FICA payments.
I am participating in BMC’s refund claims. Will my refund be taxable income to me?
The refunded FICA taxes will not be taxable income. However, interest on the refunded taxes will be taxable income to you in the year that the interest payment is received. Residents should consult their personal tax advisor if they have questions concerning their individual tax liability.
I am participating in BMC’s refund claims. What will be the effect of this refund on my social security wages?
Your resident wages will no longer be counted as social security wages for the affected years and BMC will file an IRS Form W-2c with the Social Security Administration to report this change. As a result, your social security earnings record will be adjusted to reflect zero wages as a resident for tax years for which you receive a refund.
Where can I get more information about the FICA refund issues?
You may wish to refer to the following resources for possible additional information:
- Visit the IRS website at www.irs.gov/charities and click on Medical Resident FICA Refund Claims or call the IRS at 1-800-919-1703.
- Consult your personal tax advisor.
Who should I contact if I have additional questions about BMC’s handling of the FICA refund issue?
You may submit a question by email, or call BMC’s Office of the General Counsel:
[email protected]; (617) 638-8095.
Please bookmark this page and return to this site to check for updates.