Cincinnati partner Ted Martin was quoted in the July 23, 2010, Business Courier of Cincinnati article, "Feds to pay University Hospital $20M."
According to the article, University Hospital (Cincinnati) and medical residents who have trained there will receive about $20 million from the federal government to resolve a tax dispute. The controversy had centered on whether medical residents should be classified as students or employees for Social Security tax purposes. The Internal Revenue Service announced earlier this year that it would honor the "student exception" for periods prior to 2005.
About 1,000 former University Hospital residents will get refunds, and the $20 million figure includes interest, said Martin, who worked with University Hospital on the matter. "The issue of whether residents are students is very close to the heart and mission of these institutions," Martin said.
Martin believes the refunds, to be split between University and medical residents, will arrive in early 2011. The hospital must provide extensive documentation to the IRS, including consent forms to be signed by medical residents dating back to the mid-1990s.