Church and Clergy Tax Developments in 2007: Part 1- Clergy and Lay Church Employees

Article summary. Congress enacted two more tax laws in 2007 that include provisions of direct relevance to churches and church employees. Tax laws enacted in prior years also contain provisions that took effect in 2007 or 2008. In addition, a number of court decisions and IRS rulings provided clarification on a number of important tax issues. Several of the most important changes and clarifications are summarized in this feature article.

Part 1- Clergy and Lay Church Employees

A.Miscellaneous Tax Law Changes

1. Revoking an exemption from Social Security. Will Congress give ministers another opportunity to revoke an exemption from Social Security? It does not seem likely, at least for now. In 2005 Congressman David Camp (R-MI) introduced a bill (H.R. 451) that would have allowed ministers a limited time to revoke an exemption from Social Security. The same opportunity has been granted three times by Congress over the past 30 years. The current attempt gained no cosponsors and is now dead. No similar legislation was introduced in 2006 or 2007.

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