- 12 - minister are not exempt from the tax on self-employment income imposed by section 1401 is sustained for each year in issue. In closing, we respond briefly to a question raised by petitioners at trial and repeated in their brief. They question how an individual could be treated as an employee (and therefore not self-employed) for purposes of deductions allowable under section 162, yet be treated as "self-employed" for purposes of section 1401. Perhaps the question results from the common practice of referring to the tax imposed by section 1401 as the "self-employment" tax. That designation is somewhat misleading because it suggests that the tax is imposed only upon individuals who are self-employed. Technically, as noted above, that tax is imposed upon an individual's "self-employment income", which by definition, includes income earned as an employee under various circumstances, including those present in this case. To reflect the foregoing, Decision will be entered for respondent.Page: Previous 1 2 3 4 5 6 7 8 9 10 11 12
Last modified: May 25, 2011