Mayo Foundation for Medical Education and Research v. United States

Mayo Foundation for Medical Education and Research v. United States was a Supreme Court case concerning the tax status of teaching hospitals. The Court ruled that certain stipends provided to medical residents were taxable income rather than scholarships because the residents were primarily seen as employees contributing to patient care, not students receiving education. This decision clarified the definition of "student" versus "employee" for tax purposes, impacting how medical training programs manage stipends and tax compliance. Ultimately, it emphasized the importance of the relationship between work and education in determining tax obligations.