Pre-Judgment Interest Under the Back Pay Act for Refunds of Federal Insurance Contributions Act Overpayments: Memorandum for Stephen W. Preston, Acting General Counsel, Department of Defense [May 31, 1994]   [open pdf - 43KB]

"This memorandum responds to your Office's request for our opinion whether civilian employees of the Department of Defense ('DoD') who receive from the Internal Revenue Service ('IRS') a refund of taxes that were deducted from their pay pursuant to 26 U.S.C. § 3121(a) of the Federal Insurance Contributions Act, 26 U.S.C. §§ 3101-3128 ('FICA'), as amended, are entitled to receive prejudgment interest on the refund from DoD pursuant to the Back Pay Act, 5 U.S.C. § 5596, as amended. We conclude that these DoD employees are not entitled to receive additional interest from DoD."