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Recent Developments in Tax Court Regarding Income Taxes for Clergy

The United States Tax Court ruled that a Methodist minister was an employee for federal income tax reporting purposes.

Federal
State:
Radde v. Commissioner, T.C. Memo. 1997—490 (1997)
Key point. Some ministers are employees for federal income tax reporting purposes.

The United States Tax Court ruled that a Methodist minister was an employee for federal income tax reporting purposes. An ordained minister of the United Methodist Church reported his income taxes as a self—employed worker rather than as an employee. The IRS audited him and reclassified him as an employee. The minister appealed to the Tax Court, which relied on a 1994 case finding that a Methodist minister was an employee. Weber v. Commissioner, 103 T.C. 378 (1994), affirmed 60 F.3d 1104 (4th Cir. 1995). The Court concluded that the minister had failed to distinguish his case from the Weber case. The Tax Court made the following additional observations:

(1) Some ministers are self—employed. The Court conceded that "for federal income tax ...

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Posted:
  • March 2, 1998

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