The Justice Department sued Detroit Medical Center, seeking repayment of $15.8 million, plus interest, in what it contends were erroneously refunded payroll taxes. At deadline, DMC officials could not be reached for comment. The complaint, filed in U.S. District Court in Detroit, is part of an Internal Revenue Service effort to get back Federal Insurance Contributions Act refunds from academic medical centers. DMC, a 10-hospital system, was refunded the 2003 FICA withholdings for medical residents in 2004, after contending that residents should have qualified for a student exemption from FICA. The Justice Department said the residents did not qualify. Earlier this year, a federal judge in Miami, creating a precedent for the Justice Department, ruled that Mount Sinai Medical Center in Miami Beach, Fla., must repay the IRS a $2.3 million FICA refund. -- by Mark Taylor
Justice Department sues DMC for refunded FICA taxes
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