As of Feb 25 2004 the IRS has a proposed regulations change on this issue. You can find it at irs.gov. Search for proposed regulations and then click on the Feb, 2004 list. It should come up under Student FICA and FUTA exceptions. It's a fairly lengthy document with lots of IRS language and legal rulings. It looks like after Feb 25, 2004 residents are not considered students and are definitely employess, meaning you are responsible for FICA tax. It does not answer the question about residents before Feb 25, 2004. When speaking with an IRS rep, she told me this would not and could not be a retroactive ruling. This document sites many things which could favor against any return of our money. After speaking with my contact at the IRS the chance for a refund is still very good. The most recent update I have heard from the IRS is that it will be at least another 3 months for any decision. Please let me know if you have any other information.

Thanks, Aaron

Zip Code: asgoldfarb@earthlink.net