Citations:

Social Security Act — Section 211(c)

Regulation No. 4 — Secs. 404.1070 - 404.1071

A. POLICY PRINCIPLE — CURRENT RULES

For taxable years after 1967, the term “trade or business” includes the performance of service:

• as a duly ordained, commissioned, or licensed minister of a church in the exercise of his ministry,

• by a member of a religious order in the exercise of duties required by the order,

• by an individual in the exercise of his profession as a Christian Science practitioner.

The above services are compulsorily covered, and the income is NESE.

Exception — The above rules do not apply if an exception from taxation under section 1402(e) of the IRC has been granted (see RS 01802.063 ff.)

B. POLICY PRINCIPLE — PREVIOUS RULES

Prior to the 1954 Amendments, the services were excluded from coverage as either employment or self-employment. Under the 1954 Amendments, the above services constituted a trade or business only if the individual so elected. The election was made by filing Form 2031 with the IRS, generally within two years of the beginning of the individual's ministry.