NYC Wins IRS Refund For City Workers

Law360, New York (November 9, 2006, 12:00 AM EST) -- The New York City Law Department said Wednesday that it had settled an ongoing lawsuit with the Internal Revenue Service, resulting in a $280 million refund, half of which will go to 73,000 city employees.

In their suit, which was filed in July 2003, New York City lawyers claimed city employees and their employers were forced to illegally pay Social Security tax to the IRS.

The illegal tax was imposed on the city’s correction, fire, police and sanitation employees who were injured in the line of...
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