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SLU, feds take tax case out of court

University says it overpaid for medical residents' FICA

A university and the federal government have agreed to resolve a lawsuit over taxing medical residents.

Saint Louis University sued the U.S. government last fall alleging it overpaid $24.6 million in Social Security and Medicare taxes from 1995 through March 2005.

Several other teaching medical programs have made similar claims, including Barnes-Jewish Hospital, which sued seeking a nearly $25 million refund.