Supreme Court to Decide Payroll Tax Issue
The U.S. Supreme Court agreed to hear a lawsuit challenging a federal regulation that disqualifies medical residents from claiming a student exemption from payroll taxes.
Modern Physician magazine says the lawsuit involves a 2005 Internal Revenue Service (IRS) regulation that prohibits medical residents, and the institutions that pay their stipends, from claiming the student exemption under the Federal Insurance Contributions Act. The regulation says anyone working at least 40 hours a week cannot qualify as a student, even if his or her work is related to a course of study.
The University of Minnesota and the Mayo Foundation filed the lawsuit. They contend the IRS ignored the definition of a "student" in the statute to narrow the exemption. The IRS lost in U.S. District Court in Minneapolis, which ruled in favor of the plaintiffs, but the 8th U.S. Circuit Court of Appeals sided with the IRS, prompting the appeal to the Supreme Court.
Modern Physician says the IRS took the same position before 2005 and was sued by several academic medical centers. In March, the IRS agreed to return payroll taxes to institutions and students who filed claims for refunds before April 2008, the end of a three-year window following the 2005 rule change, Modern Physician reported.
New Program Helps Medical Students Get Involved
Texas medical students will find the tools and resources they need to become leaders for health in their community through the new TMAF Medical Student Community Leadership Grants Program.
TMA Medical Student chapters can apply for a matching grant of up to $3,000 for a health improvement program linked to TMA's adoption of the AMA Healthier Life Steps (HLS) program. HLS provides information and tools to help patients change four key health behaviors: diet, physical activity, alcohol consumption and tobacco use. Studies indicate that at least 50 percent of health care spending is lifestyle-related and could be prevented.
Grants will primarily support short-term educational, community service, and other outreach programs. Program examples include:
A Grant application can be downloaded here . July 30 is the deadline to apply.
For more information about this program, e-mail Sean Dunham or call him at (800) 880-1300, ext. 1664, or (512) 370-1664.
TMA Offers Educational Loans
Do you know TMA offers educational loans to students attending Texas medical schools? These small, private loans are often included in students' financial aid packages. Depending on which medical school you attend, you may be eligible for a $3,000 or $4,000 loan with a 4.4-percent fixed interest rate.
Each school handles the funds a little bit differently, so if you are interested in this program, see the TMA Web site , or call (800) 880-2828.
TMA on Facebook and Twitter
For more inside news about TMA events and issues, become a fan of the Medical Student Section on Facebook .
You also can stay up-to-date about Texas medicine by subscribing via RSS to Blogged Arteries , which provides breaking news you need to know, and by following TMA @texmed on Twitter .
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