Academic journal article Journal of Accountancy

Medical Center's FICA Refund Claim Dismissed as Untimely

Academic journal article Journal of Accountancy

Medical Center's FICA Refund Claim Dismissed as Untimely

Article excerpt

The First Circuit Court of Appeals dismissed a suit for refund of FICA taxes Maine Medical Center mistakenly paid for its medical residents in the 2001 tax year, upholding a lower court determination that Maine Medical's discovery requests were not warranted and that the information it sought from the IRS would not have proved that Maine Medical's refund claim, which the IRS claimed it never received, was timely.

Maine Medical said it mailed its refund claim on April 15, 2005, and presented testimony about preparing the claim but did not present evidence to prove that the claim was actually mailed on that date. Timely filing of a refund claim is a prerequisite to a tax refund suit.

In rejecting the request for discovery, the court noted that Maine Medical had not been diligent in preserving its rights because it had not attempted to obtain a duplicate receipt for certified mail (which could have been obtained from the post office within two years of mailing) or investigated why the IRS had not responded to its refund claim until just before it filed suit.

The common law mailbox rule would not prove Maine Medical's request was timely because the rule does not apply unless a document has been mailed in sufficient time to be received by the due date in the ordinary course of post office business. …

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