May 1, 2007

COMPTROLLER WEITZMAN, SENATOR SCHUMER RECOVER
$438,000 IN I.R.S. REFUNDS FOR COUNTY AND EMPLOYEES

Nassau County Comptroller Howard S. Weitzman announced today that, with help from Senator Charles E. Schumer, he has recovered $437,794 owed by the Internal Revenue Service for a decade to the county and to some of its employees and retirees.  The funds represent reimbursements of FICA taxes collected in 1996 and 1997 from the county and employees on disability leave.  Comptroller Weitzman said his office has begun issuing the first in a series of refund checks totaling more than $125,000 to affected employees and retirees. 

“It’s about time the IRS came through with this money, which has been owed to the county and some of its employees and retirees for a decade,” Comptroller Weitzman said.  “Thanks to the efforts of my staff and some timely assistance from Senator Schumer, I’m happy to say that we have finally gotten the IRS to honor its obligations.”

Senator Schumer said, “At long last, the IRS has done the right thing and returned the money owed to Nassau taxpayers. I’m thrilled that the IRS has finally agreed to pay back hundreds of thousands of dollars to these workers and the county. Comptroller Weitzman was a real pit bull for Nassau taxpayers and deserves special thanks for staying on the case.”

Although the Comptroller’s Office had been submitting paperwork to secure the refunds since 1998, the IRS refused to release the money due to a dispute over a small portion of the refund amount. In November 2006, at Comptroller Weitzman’s request, Senator Schumer wrote to IRS Commissioner Mark Everson requesting his assistance in resolving the matter.

The overpayments occurred in 1996 and 1997 when employee sick leave, which is subject to the FICA tax, was retroactively converted to worker’s compensation, which is not subject to FICA tax, resulting in a claim for reimbursement of FICA taxes. The federal government normally refunds the FICA tax paid under such circumstances.