Two groups of former medical residents and fellows have been permitted to sue the New York and Presbyterian Hospital for breach of fiduciary duty when the hospital waived its right to file for withholding tax refunds on their behalf as part of a settlement of hospital issues with the IRS. The issue involves the payment of FICA withholding taxes for Social Security and Medicare on behalf of residents and fellows at Cornell Medical School and Columbia Medical School during the late 1990s through 2005. Although the FICA statute has an exception for employment of students, the IRS claimed that residents and fellows were not exempt and demanded withholding. While the issue was being litigated in...