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Petitioners bear the burden of proving that because Mr.
Vigil was eligible for the exemption and his Form 4361 was timely
filed, respondent’s determination is erroneous. See Rule 142(a);
Welch v. Helvering, supra.
In response to petitioners’ assertion of exemption from
self-employment tax with respect to their 2001 tax return,
respondent’s Ministerial Exemption Unit conducted a search to
determine whether Mr. Vigil had previously filed a Form 4361 and
whether it had been approved. Upon searching the IRS files, a
supervisor of this unit found Mr. Vigil’s 1996 letter asserting
that he filed Form 4361 in 1987, requesting another copy of the
approved Form 4361, and enclosing a copy of the signed but
unapproved Form 4361. The supervisor also found the case history
sheet that was completed in 1996 when the IRS received Mr.
Vigil’s letter. The case history sheet documented the search at
both the IRS and the SSA for any Form 4361 filed by Mr. Vigil and
reflects that the IRS notified petitioners in June 1996 that
neither the IRS nor the SSA found any record of a Form 4361 for
Mr. Vigil, either approved or denied.1 The supervisor queried
1 The supervisor described the procedure for processing
ministerial exemption applications. Upon receipt, Form 4361 is
evaluated to determine whether the applicant meets the
eligibility requirements. If so, the IRS sends the taxpayer a
declaration statement to sign and return. Finally, the Form
4361, originally filed in triplicate, is approved or denied. The
IRS retains copy A for its files, sends copy B to the SSA for
retention, and returns copy C, marked approved or denied, to the
(continued...)
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