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self-employment" means gross income derived by an individual from
any trade or business carried on by such individual, less allowed
deductions attributable to such trade or business. Sec. 1402(a).
Petitioner agrees that but for his religious convictions, the
income earned in connection with his piano service and sales
business would be subject to self-employment tax. Petitioner
argues, however, that he is exempt from self-employment tax based
upon his religious beliefs.
Section 1402(g) provides an exemption from payment of the
self-employment tax to taxpayers conscientiously opposed to
accepting the benefits of any private or public insurance on
religious grounds if certain requirements are met.3 Among these
3Sec. 1402(g) provides:
(1) Exemption.--Any individual may file an application
* * * for an exemption from the tax imposed by this
chapter if he is a member of a recognized religious
sect or division thereof and is an adherent of
established tenets or teachings of such sect or
division by reason of which he is conscientiously
opposed to acceptance of the benefits of any private or
public insurance which makes payments in the event of
death, disability, old-age, or retirement or makes
payments toward the cost of, or provides services for,
medical care (including the benefits of any insurance
system established by the Social Security Act). Such
exemption may be granted only if the application
contains or is accompanied by--
(A) such evidence of such individual's
membership in, and adherence to the tenets or
teachings of, the sect or division thereof as
the Secretary may require for purposes of
determining such individual's compliance with
the preceding sentence, and
(continued...)
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Last modified: May 25, 2011