- 2 - decision is whether petitioner James M. McGaffin, a minister, is exempt from self-employment tax because he properly filed an application for exemption under section 1402(e).2 Some of the facts have been stipulated and are so found. The stipulation of facts and attached exhibits are incorporated herein by reference. At the time the petition was filed in this case, petitioners resided in Omaha, Nebraska. All references to petitioner are to James M. McGaffin. Background Petitioner began practicing as a licensed minister in 1984 and was subsequently ordained in 1988. Petitioners filed a joint individual income tax return for the year 1984 indicating their respective occupations to be "pastor" and housewife. The return reported self-employment income in excess of $400 some of which was earned by petitioner through the performance of services as a minister. There was no Form 4361, Application For Exemption From Self-Employment Tax, for use by ministers, attached to the return for the year 1984. Petitioners did attach to their 1984 return a Schedule SE, Computation of Social Security Self-Employment Tax. On the schedule they did not check the box following line 2, Part I, Schedule SE, to indicate earnings as a minister that were exempt from self-employment tax. 2The parties have stipulated to the amount to which the self-employment tax applies if petitioner is not exempt.Page: Previous 1 2 3 4 5 6 Next
Last modified: May 25, 2011