Rev. Rul. 56-56

The Internal Revenue Service has been requested to determine the status, for purposes of the Federal Insurance Contributions Act (chapter 21, subtitle C, Internal Revenue Code of 1954), of services performed by a doctor as a resident-in-training for a hospital.

The doctor is a citizen of a foreign country and is a graduate of one of the medical schools of that country. Prior to assuming his duties as a resident-in-training at hospital A , he completed his internship at hospital B . Both such hospitals are located in this country. Hospital A considered the doctor's status to be that of a student during his one-year's residence at that institution and presented him with a diploma at the end of such period.

Under section 3121(b)(13) of the Act, services performed by an individual as an intern (as distinguished from a resident doctor) in the employ of a hospital are excepted from `employment,' as that term is defined by the Act, if the medical training of the individual meets certain specified requirements.

Inasmuch as the doctor had completed his internship prior to assuming his duties at hospital A , it is concluded that his services as resident-in-training for such hospital are not excepted from `employment' under section 3121(b)(13) of the Act. Accordingly, the remuneration paid to the doctor by hospital A constitutes `wages' subject to the taxes under the Act.

The fact that the doctor served his internship in a hospital different from the one in which he serves as a resident-in-training is immaterial. The conclusion for Federal employment tax purposes is the same where the internship and the services as resident-in-training occur at the same hospital.