- 7 -
carried on by that individual, less the deductions attributable
to that trade or business. Sec. 1402(a). Section 1402(c)(4) and
the final sentence of section 1402(c), however, provide that the
term "trade or business" does not include "the performance of
service by a duly ordained, commissioned, or licensed minister of
a church in the exercise of his ministry" if an exemption under
section 1402(e) is in effect.
Section 1402(e) provides specific requirements for a
minister to obtain an exemption from self-employment tax. A
minister seeking the exemption must file an application stating
that he is opposed, because of religious principles or
conscientious beliefs, to the acceptance of certain types of
public insurance, such as that provided by the Social Security
Act, attributable to his or her services as a minister. Sec.
1402(e)(1). The application must be filed on or before the due
date of the return for the second taxable year in which the
taxpayer has $400 or more of self-employment income from the
performance of exempted services. Sec. 1402(e)(3). The
application deadline is strictly enforced. See Kelly v.
Commissioner, T.C. Memo. 1980-37; Engstrom v. Commissioner, T.C.
Memo. 1980-41.
Petitioner filed a Form 4361, Application for Exemption from
Self Employment Tax, which was received by the Internal Revenue
Service on April 17, 1989. Box 3 and line 4 of the Form 4361
identify petitioner as having been ordained by the Assemblies of
Page: Previous 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 Next
Last modified: May 25, 2011