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self-employment income consists of the net earnings derived by an
individual (other than a nonresident alien) from a trade or
business carried on by such individual. See sec. 1402(a) and
(b); sec. 1.1401-1(c), Income Tax Regs.
Section 1402(e), in pertinent part, provides an exemption
from the self-employment tax, for certain ministers, on self-
employment income derived from the performance of services as a
minister. Section 1402(e)(1) provides this exemption to
ministers who file for the exemption pursuant to section
1402(e)(3). Since petitioner was not a minister, this provision
is not applicable to petitioner.
Section 1402(g) provides generally for an exemption from the
payment of self-employment tax by taxpayers who are
conscientiously opposed, on religious grounds, to accepting the
benefits of any private or public insurance. In order to qualify
for the exemption, the taxpayer seeking such exemption must be a
member of a recognized religious sect or division thereof and
must adhere to the sect's or division's established tenets or
teachings that promote opposition to acceptance of the benefits
of private or public insurance. Additionally, taxpayers seeking
the exemption must file, with the Internal Revenue Service, a
Form 4029, Application for Exemption From Social Security and
Medicare Taxes and Waiver of Benefits. See sec. 1.1402(h)-1(b),
Income Tax Regs. The mere filing of a return showing no self-
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Last modified: May 25, 2011