IRS Determines Medical Residents are Excepted from FICA

March 2, 2010 ( - The Internal Revenue Service has made an administrative determination to accept the position that medical residents are excepted from FICA taxes based on the student exception for tax periods ending before April 1, 2005, when new IRS regulations went into effect.

The IRS said that within 90 days, it will begin contacting hospitals, universities, and medical residents who filed FICA (Social Security and Medicare tax) refund claims for these periods with more information and procedures. Employers and individuals with pending claims do not need to take any action at this time.

More information is here, or can be obtained by calling 1-800-919-1703 or visiting and clicking on Medical Resident FICA Refund Claims.  

Taxpayers with currently pending suits should contact the Department of Justice attorney assigned to the case.

Information on the student exception to FICA tax is here

The 2005 IRS regulations are here.