SECTION 1. PURPOSE

.01 This revenue procedure sets forth generally applicable standards for determining whether services in the employ of certain public or private nonprofit schools, colleges, or universities, or affiliated organizations described in § 509(a)(3) of the Internal Revenue Code (the Code) performed by a student qualify for the exception from Federal Insurance Contributions Act (FICA) tax provided under § 3121(b)(10) of the Code (Student FICA exception). These standards are intended to provide objective and administrable guidelines for determining employment tax liability.

.02 This revenue procedure modifies the safe harbor standards provided in Rev. Proc. 98–16, 1998–1 C.B. 403, in several respects in order to align them with the recently issued final regulations under § 31.3121(b)(10)–2 of the Employment Tax Regulations (T.D. 9167, 2005–2 I.R.B. 261 [69 F.R. 76404]).