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2A(a)(1), Income Tax Regs., provides: “Such a request shall be
made by filing an application for exemption on Form 4361”.
The parties agree that petitioner is a minister who
qualifies for exemption under section 1402(e). The parties
further agree that, if Form 4361 was filed, the filing was
timely. The issue is whether petitioner filed a Form 4361 in
1977.
We found petitioner’s evidence that he had filed for an
exemption to be particularly credible. His testimony concerning
the filing of the Form 4361 was straightforward and plausible.
Further, his testimony was buttressed by the written statement of
a witness who observed petitioner complete and sign the Form 4361
in 1977.2
With regards to whether the application was approved by
respondent, as required by the regulations, see section
1.1402(e)-2A(c), Income Tax Regs., we believe that such approval
must have been given.3 Petitioner consistently has not paid
self-employment taxes on his ministerial earnings since 1977.
While we reject any argument concerning estoppel against
respondent, it seems highly peculiar that, if the approval had
2 Technically, the statement is hearsay. See Fed. R. Evid.
802. However, respondent has not raised an objection, and the
statement definitely has probative value. See Rule 177.
3 While petitioner could not produce a copy of the
application, we note that neither sec. 1402(e), sec. 6001
(pertaining to required records), nor the applicable regulations
require petitioner to retain such a copy.
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Last modified: May 25, 2011