Clergy Act

Bill: 119-s-639
Sponsor: full_name: Sen. Britt, Katie Boyd [R-AL]
Introduced: 2025-02-19
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: 2025-02-19
text: Read twice and referred to the Committee on Finance.

Summaries:
action_date: 2025-02-19
action_desc: Introduced in Senate
text: <p><strong>Clergy Act</strong></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: II 119th CONGRESS 1st Session S. 639 IN THE SENATE OF THE UNITED STATES February 19, 2025 Mrs. Britt (for herself and Ms. Hassan ) introduced the following bill; which was read twice and referred to the Committee on Finance 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 (1) Revocation of exemption 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), provided that 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, 2027. (2) Effect of revocation (A) In general 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. ), any revocation described in paragraph (1) shall be effective— (i) as specified in the application, with respect to— (I) the applicant’s first taxable year beginning after December 31, 2027, or (II) the applicant’s second taxable year beginning after such date, and (ii) for all succeeding taxable years. (B) Prohibition on subsequent request for exemption In the case of any individual who, pursuant to paragraph (1), has revoked an exemption received under section 1402(e)(1) of the Internal Revenue Code of 1986, such individual may not subsequently file another application for an exemption under such section. (3) Inclusion of taxes owed If an application described in paragraph (1) 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, as determined without respect to— (A) paragraphs (4) and (5) of section 1402(c) of such Code, and (B) any exemption received under section 1402(e)(1) of such Code. (b) Effective date Subsection (a) shall apply with respect to— (1) services performed (to the extent specified in such subsection) in taxable years beginning after December 31, 2027, (2) 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 (3) 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.