Federal Judge Orders IRS to Refund Social Security Taxes on Medical Students in Minnesota

A federal judge in Minneapolis has ordered the Internal Revenue Service to refund the University of Minnesota $1.1-million in Social Security and Medicare taxes that he said the government had improperly levied on medical residents enrolled in the second quarter of 2005.

In an order issued on Monday, Judge Richard H. Kyle of the U.S. District Court for Minnesota ruled that the medical residents qualified for a student exemption from the payroll taxes, which are known as FICA