Accounting and Tax Services
Aug 06

FICA Student Exception Applies to Medical Residents; Court Orders Refund of $2.5 Million

A U.S. district court has ordered the government to refund $2.5 million in FICA taxes paid by a medical facility on its residents’ stipends, finding that the residents are excepted from FICA taxation under section 3121(b)(10) because the facility qualified as a school, college, or university and the residents were students.

Citations: United States v. Mount Sinai Medical Center of Florida Inc.; No. 1:02-cv-22715

About Reed Tinsley, CPA

As a top advisor to physicians, I help increase practice profits by delivering hands-on, expert medical accounting/tax support, practice counsel, and revenue-building strategies. Read more →