On March 2, 2010, as this issue was going to press, the IRS issued a news release, IR-2010-025, stating that it had “made an administrative determination to accept the position that medical residents are excepted from FICA taxes based on the student exception for tax periods ending before April 1, 2005, when new IRS regulations went into effect.” The IRS had lost a number of cases dealing with that issue for periods ending before the effective date of the regulations, but nevertheless its concession came as a welcome surprise.