Dean W. and Tammy R. May - Page 6

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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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