On January 11, 2011, the U.S. Supreme Court upheld the validity of the IRS's 2005 regulation which states that medical residents who work over 40 hours per week must pay FICA because they do not qualify for the FICA student exemption. Mayo Clinic claimed the regulation was invalid and that residents should not have to pay FICA because they are students. The Court's decision almost certainly means the IRS will deny all FICA refund claims filed for the time-period April 1, 2005 going forward, including claims filed by UAB on behalf of itself and its residents for the time-period 2006-2009. 

Although UAB will monitor the IRS's response to this decision, at this time, UAB does not intend to file any additional refund claims on behalf of medical residents or to contest the IRS' expected denial of the refund claims previously filed.  If UAB's position changes, we will let you know via this website.  As a reminder, UAB did not file protective refund claims for its residents or itself for the time-periods prior to the effective date of the April 1, 2005 regulation.