Clergy Act

Clergy can revoke Social Security exemption

If enacted, you would be able to apply to revoke a prior Social Security exemption if you are a duly ordained, commissioned, or licensed minister, a member of a religious order, or a Christian Science practitioner and your exemption was effective for the taxable year in which this Act is enacted. You would need to file an application in the form and manner the IRS prescribes no later than the due date (including extensions) of your second taxable year beginning after December 31, 2028. You could choose the revocation to take effect for either your first or your second taxable year beginning after December 31, 2028, and for all later years. If you file the application after the tax return due date and make it effective for that taxable year, you would have to pay in full the self-employment taxes that would have applied to your net earnings for that year. If you revoke, you could not later apply again for the exemption. The revocation would apply to service performed in taxable years beginning after December 31, 2028, and, if effective, Social Security monthly insurance benefits and lump-sum death payments could be payable for months or deaths in or after the calendar year the revocation takes effect. The IRS, in consultation with the Social Security Administration, would also have to submit a plan within 90 days after enactment to inform eligible clergy about this revocation option.