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Exemption from Social Security

The time limitation on applying for exemption is not renewed when a minister has a change in beliefs.

Key point: An application for exemption from self-employment taxes (Form 4361) that is filed after the deadline is ineffective even if the IRS erroneously recognizes the exemption.

• The Tax Court ruled that a minister who filed an application for exemption from self-employment taxes after the deadline had expired could not rely on an IRS letter that erroneously informed him that he was exempt. A minister was ordained in 1971, and received at least $400 or net self-employment income from performing ministerial services in 1971 and 1972. In 1976, the minister filed an application for exemption from self-employment taxes (Form 4361) with the IRS. The IRS denied this application because it had not been timely filed. Although he had net earnings from self-employment from ministerial services during the 1975 tax year, the minister did not report any self-employment tax attributable ...

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Posted:
  • January 3, 1994

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