Clergy Act

Bill: 118-hr-6068
Sponsor: full_name: Rep. McCarthy, Kevin [R-CA-20]
Introduced: 2023-10-26
Policy area: Social Welfare
Subjects: Congressional oversight

Income tax exclusion

Religion

Social security and elderly assistance

Tax administration and collection, taxpayers
Latest action: action_date: 2023-12-01
text: Placed on the Union Calendar, Calendar No. 232.

Summaries:
action_date: 2023-10-26
action_desc: Introduced in House
text: <p><b>Clergy Act</b></p> <p>This bill establishes a two-year window for certain members of the clergy and Christian Science practitioners to revoke their exemption from Social Security and Medicare taxes on ministerial earnings. Under current law, such individuals who object to participation in public insurance programs on religious or conscientious grounds may apply to the Internal Revenue Service for an irrevocable exemption and will not receive Social Security or Medicare benefits in retirement unless they have qualifying credits from other employment.</p> <p>The Internal Revenue Service must develop a plan to inform members of the clergy and Christian Science practitioners of their eligibility to revoke prior exemptions, pursuant to the bill's changes.</p>

action_date: 2023-12-01
action_desc: Reported to House
text: <p><b>Clergy Act</b></p> <p>This bill establishes a two-year window for certain members of the clergy and Christian Science practitioners to revoke their exemption from Social Security and Medicare taxes on ministerial earnings. Under current law, such individuals who object to participation in public insurance programs on religious or conscientious grounds may apply to the Internal Revenue Service for an irrevocable exemption and will not receive Social Security or Medicare benefits in retirement unless they have qualifying credits from other employment.</p> <p>The Internal Revenue Service must develop a plan to inform members of the clergy and Christian Science practitioners of their eligibility to revoke prior exemptions, pursuant to the bill's changes.</p>

tv_txt: IB Union Calendar No. 232 118th CONGRESS 1st Session H. R. 6068 [Report No. 118–288] IN THE HOUSE OF REPRESENTATIVES October 26, 2023 Mr. McCarthy (for himself, Mr. Thompson of California , Mr. Ciscomani , Mr. Arrington , Mr. Bilirakis , Ms. DelBene , Mr. Estes , Mr. Mike Garcia of California , Mr. Kelly of Pennsylvania , Mr. LaHood , Mr. Smith of Nebraska , Mr. Smucker , Mrs. Steel , and Mr. Wenstrup ) introduced the following bill; which was referred to the Committee on Ways and Means December 1, 2023 Reported with an amendment, committed to the Committee of the Whole House on the State of the Union, and ordered to be printed Strike out all after the enacting clause and insert the part printed in italic For text of introduced bill, see copy of bill as introduced on October 26, 2023 A BILL To allow a period in which members of the clergy may revoke their exemption from Social Security coverage, and for other purposes.

1. Short title This Act may be cited as the Clergy Act . 2. Revocation by members of the clergy of exemption from social security coverage (a) In general Notwithstanding section 1402(e)(4) of the Internal Revenue Code of 1986, any exemption which has been received under section 1402(e)(1) of such Code by a duly ordained, commissioned, or licensed minister of a church, a member of a religious order, or a Christian Science practitioner, and which is effective for the taxable year in which this Act is enacted, may be revoked by filing an application therefor (in such form and manner, and with such official, as may be prescribed by the Commissioner of Internal Revenue), if such application is filed no later than the due date of the Federal income tax return (including any extension thereof) for the applicant’s second taxable year beginning after December 31, 2025. Any such revocation shall be effective (for purposes of chapter 2 of the Internal Revenue Code of 1986 and title II of the Social Security Act ( 42 U.S.C. 401 et seq. )), as specified in the application, either with respect to the applicant’s first taxable year beginning after December 31, 2025, or with respect to the applicant’s second taxable year beginning after such date, and for all succeeding taxable years; and the applicant for any such revocation may not thereafter again file an application for an exemption under such section 1402(e)(1). If the application is filed after the due date of the applicant’s Federal income tax return for a taxable year and is effective with respect to that taxable year, it shall include or be accompanied by payment in full of an amount equal to the total of the taxes that would have been imposed by section 1401 of the Internal Revenue Code of 1986 with respect to all of the applicant’s income derived in that taxable year which would have constituted net earnings from self-employment for purposes of chapter 2 of such Code (notwithstanding paragraphs (4) and (5) of section 1402(c)) except for the exemption under section 1402(e)(1) of such Code. (b) Effective date Subsection (a) shall apply with respect to service performed (to the extent specified in such subsection) in taxable years beginning after December 31, 2025, and with respect to monthly insurance benefits payable under title II of the Social Security Act on the basis of the wages and self-employment income of any individual for months in or after the calendar year in which such individual’s application for revocation (as described in such subsection) is effective (and lump-sum death payments payable under such title on the basis of such wages and self-employment income in the case of deaths occurring in or after such calendar year). 3. Report to Congress Not later than 90 days after the date of enactment of this Act, the Commissioner of Internal Revenue, in consultation with the Commissioner of Social Security, shall develop and submit to the Committee on Ways and Means of the House of Representatives and the Committee on Finance of the Senate a plan to inform duly ordained, commissioned, or licensed ministers of a church, members of a religious order, and Christian Science practitioners of their eligibility to revoke any prior election of exemption from Social Security participation.

December 1, 2023 Reported with an amendment, committed to the Committee of the Whole House on the State of the Union, and ordered to be printed

tv_txt: I 118th CONGRESS 1st Session H. R. 6068 IN THE HOUSE OF REPRESENTATIVES October 26, 2023 Mr. McCarthy (for himself, Mr. Thompson of California , Mr. Ciscomani , Mr. Arrington , Mr. Bilirakis , Ms. DelBene , Mr. Estes , Mr. Mike Garcia of California , Mr. Kelly of Pennsylvania , Mr. LaHood , Mr. Smith of Nebraska , Mr. Smucker , Mrs. Steel , and Mr. Wenstrup ) introduced the following bill; which was referred to the Committee on Ways and Means A BILL To allow a period in which members of the clergy may revoke their exemption from Social Security coverage, and for other purposes.

1. Short title This Act may be cited as the Clergy Act . 2. Revocation by members of the clergy of exemption from social security coverage (a) In general Notwithstanding section 1402(e)(4) of the Internal Revenue Code of 1986, any exemption which has been received under section 1402(e)(1) of such Code by a duly ordained, commissioned, or licensed minister of a church, a member of a religious order, or a Christian Science practitioner, and which is effective for the taxable year in which this Act is enacted, may be revoked by filing an application therefor (in such form and manner, and with such official, as may be prescribed by the Commissioner of Internal Revenue), if such application is filed no later than the due date of the Federal income tax return (including any extension thereof) for the applicant’s second taxable year beginning after December 31, 2025. Any such revocation shall be effective (for purposes of chapter 2 of the Internal Revenue Code of 1986 and title II of the Social Security Act ( 42 U.S.C. 401 et seq. )), as specified in the application, either with respect to the applicant’s first taxable year beginning after December 31, 2025, or with respect to the applicant’s second taxable year beginning after such date, and for all succeeding taxable years; and the applicant for any such revocation may not thereafter again file an application for an exemption under such section 1402(e)(1). If the application is filed after the due date of the applicant’s Federal income tax return for a taxable year and is effective with respect to that taxable year, it shall include or be accompanied by payment in full of an amount equal to the total of the taxes that would have been imposed by section 1401 of the Internal Revenue Code of 1986 with respect to all of the applicant’s income derived in that taxable year which would have constituted net earnings from self-employment for purposes of chapter 2 of such Code (notwithstanding paragraphs (4) and (5) of section 1402(c)) except for the exemption under section 1402(e)(1) of such Code. (b) Effective date Subsection (a) shall apply with respect to service performed (to the extent specified in such subsection) in taxable years beginning after December 31, 2025, and with respect to monthly insurance benefits payable under title II of the Social Security Act on the basis of the wages and self-employment income of any individual for months in or after the calendar year in which such individual’s application for revocation (as described in such subsection) is effective (and lump-sum death payments payable under such title on the basis of such wages and self-employment income in the case of deaths occurring in or after such calendar year). 3. Report to Congress Not later than 90 days after the date of enactment of this Act, the Commissioner of Internal Revenue, in consultation with the Commissioner of Social Security, shall develop and submit to Congress a plan to inform duly ordained, commissioned, or licensed ministers of a church, members of a religious order, and Christian Science practitioners of their eligibility to revoke any prior election of exemption from Social Security participation.