I need some tax (calculation) help, please.

I have been informed by the IRS that in my years as a resident from 1994-1997 I should have been considered a student and not an employee. As such I am entitled to a refund of any FICA paid by me during those years. They have informed me of the amount due back plus state I am entitled to interest accrued. Is there an easy way to calculate how much I am owed back in interest. I know the IRS uses the treasury rate plus 3% on over payments and it's compounded daily. I have seen some tables that list the rates over the years. Is there an easy way to calculate this (such as an online calculator)?

Am I better off paying my accountant to calculate this so that I know the exact amount?

I doubt you need to calculate it, the SSA should do the calculation for you.

Quote: DrJohn

I have been informed by the IRS that in my years as a resident from 1994-1997 I should have been considered a student and not an employee. As such I am entitled to a refund of any FICA paid by me during those years. They have informed me of the amount due back plus state I am entitled to interest accrued. Is there an easy way to calculate how much I am owed back in interest. I know the IRS uses the treasury rate plus 3% on over payments and it's compounded daily. I have seen some tables that list the rates over the years. Is there an easy way to calculate this (such as an online calculator)?

Am I better off paying my accountant to calculate this so that I know the exact amount?

I find this very hard to believe. I was a resident from 1986-1990, but just as you did, received a paycheck. Just as you did, I had FICA taken out. How did the IRS inform you of this decision. I am asking because it seems very unusual that they would look at something from over 15 years ago. Is this going to affect the millions of doctors in the US, or is it something unique about your training program?
I could use a refund of my FICA taxes from that time to help me pay HB when she wins the challenge....

This was something that my residency looked into and got approved by the IRS. Thank you Pitt County Memorial Hospital.

If the hospital got the ruling from the IRS, they should have some procedure to apply for the refund as well (i.e. amended returns, etc.). I recommend following that procedure and letting the IRS do the calculation of interest and then checking it based on simple interest rates compounded annually.

If the IRS calculation is close to what you calculated, call it a day. If you believe they are off by a lot, request a copy of the interest calculation. It is usually done based on a daily rate for the number of days the amount was due.

Edited: not relevant

below is a calcuator I have used. For your purposes, switch to the standard calculator side. Hopefully you know what interest rate they will pay.

http://www.thecalculatorsite.com/finance/calculators/compoundinterestcalculator.php

Thank you, that is exactly what I was looking for!!