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testified that he gave much of his income to the poor “for God’s
work”.
Petitioner presented two arguments as to why he should not
be required to pay Federal income tax on his Pension Plan
payments and Social Security benefits. He first argued that his
Pension Plan payments and Social Security benefits qualified as
exempt income because he serves as an evangelist and associate
pastor in the World’s Prayers Answered Church of God. In the
alternative, petitioner considered himself an agent of his
religious order, the church, and viewed his income as
remuneration directly to the principal, the church, to be used
for its charitable purposes.
To support his assertion that his Pension Plan payments and
Social Security benefits were exempt from Federal income tax,
petitioner cited section 31.3401(a)(9)-1, Employment Tax Regs.
He interpreted this section to mean that any wages, regardless of
source, that a minister earns while serving in a church are
exempt from Federal income tax. The Court rejects that argument.
Section 31.3401(a)(9)-1, Employment Tax Regs., expressly states
that the definition of “wages” does not include moneys paid for
services performed by a member of a religious order that are
required by that order.
Petitioner was not paid any salary, wages, or other
compensation by the church for his services to the church. His
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