U Of Texas Hospital System Loses $11M FICA Tax Fight

Law360, New York (February 4, 2013, 4:36 PM EST) -- The University of Texas System on Friday lost its bid to recover $11 million in Federal Insurance Contributions Act taxes it claims were mistakenly levied against its hospitals and medical residents, after a Texas federal judge ruled its residents were not exempt from the tax.

According to U.S. District Judge Sam Sparks, who granted a motion for partial summary judgment by the federal government and denied a similar motion by UT, because the UT hospitals’ residents — graduate doctors operating under supervision from more senior staff —...
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