The Internal Revenue Service has issued advice from its Office of Chief Counsel providing guidance to employers who request refunds of Federal Insurance Contributions Act payroll withholding taxes for medical residents.

Legal cases involving the question of the taxation of medical residents have gone all the way to the Supreme Court (see Supreme Court Rules for IRS, Against Medical Residents). The Supreme Court ruled unanimously in 2011 in favor of the IRS, saying that medical residents are full-time employees who are subject to payroll taxes and don’t qualify for the student exemption.

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