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Former KUMC medical students receive $17M refunds

Published on -8/5/2013, 2:53 PM

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TOPEKA, Kan. (AP) -- More than 1,100 former medical students at the University of Kansas Medical Center have received a total of $17.7 million in reimbursements for taxes they shouldn't have paid.

State officials said Monday the refunds from the Internal Revenue Service are for Social Security and Medicare taxes withheld from medical residents' paychecks from 1993 to 2005. The average refund will be about $15,570.

The state is expected to receive $25 million, representing the employer's share of FICA withholding.

The IRS agreed to issue refunds after medical schools across the country sued, saying medical residents were students and therefore exempt from FICA taxes under regulations in place during those years.

In response, the IRS clarified in April 2005 that medical residents were full-time employees and not eligible for the student exemption.

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