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Senate Majority Leader Reid announces that the Senate will conduct a key procedural vote on Saturday to determine if senators can move on to consider Democrats' version of the health care overhaul bill (substitute amendment for H.R. 3590). The 8 p.m. vote will be the first test of whether Democrats can garner the 60 votes needed to avoid a Republican filibuster. If successful, the Senate is likely to formally move on to the bill after the week-long Thanksgiving break, clearing the way for deeper debate and amendments to be offered in the coming weeks.

This article was originally printed in today's BNA Daily Tax Report.

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The Internal Revenue Service (IRS) recently won a long fought victory over the student medical resident exception from employment taxes under the Federal Insurance Contribution Act (FICA). In response to a number of federal court decisions holding that the services of a medical resident fell within the student exception from FICA taxes, the IRS adopted revised regulations which provide that “[t]he services of a full-time employee are not incident to and for the purpose of pursuing a course of study.” The Eighth Circuit reversed two district court decisions that found the revised regulations to be an invalid exercise of IRS regulatory authority. According to the court in Mayo Foundation for Medical Education and Research v. U.S., No. 073242 (8th Cir. 6/12/09), IRS regulations limiting the student FICA exception to students who are not full-time employees is a permissible interpretation of the statute.

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