IRS Medical Resident FICA Refund Initiative

Consent forms are now being accepted until April 1, 2011

The Internal Revenue Service (IRS) announced on March 2, 2010, that medical resident stipends are exempt from FICA taxes for tax periods before April 1, 2005 based on the "student FICA exception." A copy of the IRS announcement regarding the refund procedure can be accessed at http://www.irs.gov/pub/irs-tege/nr-2010_25.pdf; and a copy of the IRS Q&A can be accessed at http://www.irs.gov/charities/article/0,,id=219547,00.html.

Lehigh Valley Health Network ("LVHN"), through its tax advisors at Deloitte Tax LLP, has started mailing medical resident consent packages relating to the FICA refund procedure.

A consent package containing a cover letter, an IRS consent document, and a list of "frequently asked questions" was sent via regular US mail to:

• Lehigh Valley Hospital medical residents who were paid stipends between January 1, 1996 to December 31, 2001, and
• Lehigh Valley Hospital: Muhlenberg medical residents who were paid stipends between January 1, 1999 to December 31, 2001.

All recipients are being asked to review the packet and determine with the assistance of their tax advisor whether they wish to participate in the refund process or not. If recipients elect to participate in the refund process, they will be required to complete and sign the consent form, and return it to Deloitte Tax, LLP in the enclosed self-addressed envelope (or via fax to 866-914-0224) no later than April 1, 2011.

Copies of the cover letter, the FAQ(s) and the consent form can be accessed by clicking the link provided below.

The consent packages were sent via regular US Mail, so please allow a week to ten days to receive your consent. Deloitte Tax LLP has attempted to research current addresses for all former medical residents impacted. If you do not receive your consent package within a week to ten days, please provide us with an email containing your current address (located at: lvhnfica@deloitte.com) and a new package will be mailed to you. Alternatively, please open and print the documents from the below .pdf link (the .pdf consists of the cover letter, FAQ(s) and consent document). After you print out and read those documents, if you elect to participate, please complete the consent and return it as noted in the accompanying instructions. Questions may also be directed to Deloitte Tax LLP as noted in the instructions.

FICA Consent Packet.pdf

Thank you.