-6-
If a minister timely files and if respondent approves a Form
4361,2 the approved ministerial exemption will be retroactively
effective for the first 2 years for which the minister received
ministerial net income from self-employment of $400 or more and
will remain effective for all subsequent taxable years. Sec.
1402(e)(4). An approved ministerial exemption is irrevocable.3
Id.
Respondent may accept from a minister, in lieu of a Form
4361, a letter if the letter is timely filed and if the letter
includes the required certification statements. 2 Audit,
Internal Revenue Manual (CCH), sec. 4.19.6.3.1(3), at 10,779-749-
11.
Petitioner bears the burden of proof to establish that a
Form 4361 or letter was timely filed.4 Rule 142(a); Treadway v.
Commissioner, T.C. Memo. 1984-153.
2 A timely filed Form 4361 must be formally approved by
respondent through a verification process. Sec. 1402(e)(2); sec.
1.1402(e)-5A(c)(1), Income Tax Regs.
3 An approved ministerial exemption is irrevocable unless a
minister after Dec. 31, 1999, elects to revoke a previously
approved ministerial exemption. Ticket to Work and Work
Incentives Improvement Act of 1999, Pub. L. 106-170, sec. 403,
113 Stat. 1910.
4 Petitioners make no argument that petitioners qualify
under sec. 7491 for a shift in the burden of proof.
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Last modified: March 27, 2008