- 6 -
years in issue were performed as an employee of the Church. See
Weber v. Commissioner, 103 T.C. 378 (1994), affd. 60 F.3d 1104
(4th Cir. 1995). They disagree, however, over whether the tax on
self-employment income is applicable to the income that
petitioner earned as a minister during those years.
In addition to other taxes, an individual's self-employment
income is subject to a tax imposed pursuant to section 1401.
Subject to irrelevant exceptions, self-employment income is
defined as the "net earnings from self-employment derived by an
individual * * * during any taxable year." Sec. 1402(b). "Net
earnings from self-employment" include the gross income earned by
an individual from any trade or business, less deductions
attributable to that trade or business. See sec. 1402(a). The
phrase "trade or business" as used for purposes of the tax on
self-employment income has the same meaning as under section 162,
which allows a taxpayer to deduct ordinary and necessary expenses
paid or incurred in carrying on any trade or business. See sec.
1402(c).
Although an individual can be in the trade or business of
being an employee, see O'Malley v. Commissioner, 91 T.C. 352,
363-364 (1988), and Primuth v. Commissioner, 54 T.C. 374, 377
(1970), generally the income earned by an individual who performs
services as an employee is not considered to be income earned in
a trade or business for purposes of the tax on self-employment
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