1 Unless otherwise indicated, all section references are

to the Internal Revenue Code in effect for the taxable year in

issue. All Rule references are to the Tax Court Rules of

Practice and Procedure.

T.C. Memo. 1999-105

UNITED STATES TAX COURT

WILLIAM CLOVIS WILLIAMS, Petitioner v.

COMMISSIONER OF INTERNAL REVENUE, Respondent

Docket No. 17320-97. Filed April 1, 1999.

William Clovis Williams, pro se.

Martha J. Weber, for respondent. 

MEMORANDUM OPINION

DINAN, Special Trial Judge: This case was heard pursuant to

the provisions of section 7443A(b)(3) and Rules 180, 181, and

182.1
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2 In paragraph 3 of his Answer, respondent alleges that

while the cover page of the notice of deficiency states a

deficiency in the amount of $2,113, the correct deficiency

determined in the notice is $744.

 

3 Petitioner and his wife, Wendy A. Williams, filed a

joint 1994 Federal income tax return. The notice of deficiency

in this case was issued jointly to petitioner and Mrs. Williams,

but Mrs. Williams has not filed a petition in this matter and is

not a party to this proceeding.

Respondent determined a deficiency in petitioner's Federal

income tax for 1994 in the amount of $744.2

The issue for decision is whether petitioner's earnings from

his Schedule C business activity are subject to self-employment

tax under section 1401.

Some of the facts have been stipulated and are so found. 

The stipulations of fact and attached exhibits are incorporated

herein by this reference. Petitioner resided in Ragley,

Louisiana, on the date the petition was filed in this case.

Petitioner was a minister during 1994. He also operated a

business which he referred to as Neighborhood Handyman (the

handyman business). On a Schedule C attached to his 1994

return,3 petitioner reported a net profit from his handyman

business in the amount of $5,263.85. He did not report any

liability for self-employment taxes with respect to this net

profit. In the statutory notice of deficiency, respondent

determined that petitioner's earnings from his handyman business

are subject to self-employment tax.
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In Williams v. Commissioner, T.C. Summary Opinion 1997-145,

this Court addressed petitioner's various arguments. We decided

the same issue which is before us in this case in favor of

respondent with respect to petitioner's 1993 taxable year. We

there held:

Although the income petitioner derived from his

handyman business may have enabled him to sustain his

ministry at Moss Bluff Church of Christ and to fulfill

the obligation of supporting his family, those reasons

or motives do not cause the handyman business to be

integral to the conduct of his ministry. Petitioner

failed to show that his self-employment income from the

handyman business was earned "with respect to services

performed by him as * * * [a] minister", as required

by section 1402(e).

* * * * * * *

Petitioner failed to present evidence to show that the

tenets or teachings of the Moss Bluff Church of Christ

are opposed to private or public insurance programs. 

Petitioner further failed to show that he is a member

of any other recognized religious sect, or division

thereof, whose tenets or teachings oppose the

acceptance of private or public insurance benefits. 

Moreover, petitioner failed to produce any evidence

that he completed and filed a Form 4029 with the IRS,

as required by the regulations, to qualify for an

exemption from self-employment tax under section

1402(g).

We find that this case is factually indistinguishable from

Williams v. Commissioner, supra. There has been no change in the

applicable law, and petitioner has not presented any additional

arguments. Accordingly, under the doctrine of collateral

estoppel, we hold that petitioner's earnings from his handyman

business are subject to self-employment tax under section 1401. 
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See Commissioner v. Sunnen, 333 U.S. 591, 597 (1948); Shaheen v.

Commissioner, 62 T.C. 359, 363 (1974).

To reflect the foregoing,

Decision will be entered

for respondent.