§3127 — Title 26 Internal Revenue Code | U.S. Code

Summary

Allows an employer and an employee to be excused from paying the employer and employee Social Security taxes (the taxes under sections 3111 and 3101) when both belong to the same religious group that is already recognized under section 1402(g)(1) and whose beliefs oppose taking part in Social Security programs. Both the employer (or each partner if it’s a partnership) and the employee must file matching applications and have them approved. Approval only happens if the application includes the proof and waiver required by section 1402(g)(1), the Commissioner of Social Security makes the findings listed in that same subsection, and no Social Security benefit was payable (or would have been payable but for section 203 of the Social Security Act) to the applicant at or before filing. If approved, the exemption starts on the first day of the first calendar quarter after filing and lasts until the quarter before either the person no longer meets the rules or the religious group loses its required status.

Title 26, §3127

Internal Revenue Code — Source: USLM XML via OLRC

(a)Notwithstanding any other provision of this chapter (and under regulations prescribed to carry out this section), in any case where—

(1)an employer (or, if the employer is a partnership, each partner therein) is a member of a recognized religious sect or division thereof described in section 1402(g)(1) and an adherent of established tenets or teachings of such sect or division as described in such section, and has filed and had approved under subsection (b) an application (in such form and manner, and with such official, as may be prescribed by such regulations) for an exemption from the taxes imposed by section 3111, and

(2)an employee of such employer who is also a member of such a religious sect or division and an adherent of its established tenets or teachings has filed and had approved under subsection (b) an identical application for exemption from the taxes imposed by section 3101,

(b)An application for exemption filed by an employer (or a partner) under subsection (a)(1) or by an employee under subsection (a)(2) shall be approved only if—

(1)such application contains or is accompanied by the evidence described in section 1402(g)(1)(A) and a waiver described in section 1402(g)(1)(B),

(2)the Commissioner of Social Security makes the findings (with respect to such sect or division) described in section 1402(g)(1)(C), (D), and (E), and

(3)no benefit or other payment referred to in section 1402(g)(1)(B) became payable (or, but for section 203 of the Social Security Act, would have become payable) to the individual filing the application at or before the time of such filing.

(c)An exemption granted under this section to any employer with respect to wages paid to any of the employees thereof, or granted to any such employee, shall apply with respect to wages paid by such employer during the period—

(1)commencing with the first day of the first calendar quarter, after the quarter in which such application is filed, throughout which such employer (or, if the employer is a partnership, each partner therein) or employee meets the applicable requirements specified in subsections (a) and (b), and

(2)ending with the last day of the calendar quarter preceding the first calendar quarter thereafter in which (A) such employer (or, if the employer is a partnership, any partner therein) or the employee involved does not meet the applicable requirements of subsection (a), or (B) the sect or division thereof of which such employer (or, if the employer is a partnership, any partner therein) or employee is a member is found by the Commissioner of Social Security to have ceased to meet the requirements of subsection (b)(2).

Notes & Related Subsidiaries

Editorial Notes

References in Text

section 203 of the Social Security Act, referred to in subsec. (b)(3), is classified to section 403 of Title 42, The Public Health and Welfare.

Prior Provisions

A prior section 3127 was renumbered section 3128 of this title.

Amendments

2018—Subsec. (b)(3). Pub. L. 115–141 struck out “or 222(b)” after “section 203”. 1994—Subsecs. (b)(2), (c)(2). Pub. L. 103–296 substituted “Commissioner of Social Security” for “Secretary of Health and Human Services”. 1989—Subsec. (a). Pub. L. 101–239, § 10204(b)(1)(B), substituted “the employees thereof” for “his employees” in concluding provisions. Subsec. (a)(1). Pub. L. 101–239, § 10204(b)(1)(A), inserted “(or, if the employer is a partnership, each partner therein)” after “an employer”. Subsec. (b). Pub. L. 101–239, § 10204(b)(1)(C), inserted “(or a partner)” after “an employer” in introductory provisions. Subsec. (c). Pub. L. 101–239, § 10204(b)(1)(D), substituted “the employees thereof” for “his employees” in introductory provisions. Subsec. (c)(1). Pub. L. 101–239, § 10204(b)(1)(E), inserted “(or, if the employer is a partnership, each partner therein)”. Subsec. (c)(2). Pub. L. 101–239, § 10204(b)(1)(F), substituted “such employer (or, if the employer is a partnership, any partner therein) or the employee involved does not meet” for “such employer or the employee involved ceases to meet” in cl. (A) and inserted “(or, if the employer is a partnership, any partner therein)” after “such employer” in cl. (B).

Statutory Notes and Related Subsidiaries

Effective Date

of 1994 AmendmentAmendment by Pub. L. 103–296 effective Mar. 31, 1995, see section 110(a) of Pub. L. 103–296, set out as a note under section 401 of Title 42, The Public Health and Welfare.

Effective Date

of 1989 Amendment Pub. L. 101–239, title X, § 10204(b)(2), Dec. 19, 1989, 103 Stat. 2474, provided that: “The

Amendments

made by this subsection [amending this section] shall be effective as if they were included in the

Amendments

made by section 8007(a)(1) of the Technical and Miscellaneous Revenue Act of 1988 (102 Stat. 3781) [Pub. L. 100–647].”

Effective Date

Section applicable to wages paid after Dec. 31, 1988, see section 8007(d) of Pub. L. 100–647, set out as an

Effective Date

of 1988 Amendment note under section 1402 of this title.

Savings Provision

For provisions that nothing in amendment by Pub. L. 115–141 be construed to affect treatment of certain transactions occurring, property acquired, or items of income, loss, deduction, or credit taken into account prior to Mar. 23, 2018, for purposes of determining liability for tax for periods ending after Mar. 23, 2018, see section 401(e) of Pub. L. 115–141, set out as a note under section 23 of this title.

§3127 Exemption for employers and their employees where both are members of religious faiths opposed to participation in Social Security Act programs

Summary

Title 26, §3127

Notes & Related Subsidiaries

Editorial Notes

References in Text

Prior Provisions

Amendments

Statutory Notes and Related Subsidiaries

Effective Date

Effective Date

Amendments

Amendments

Effective Date

Effective Date

Savings Provision

Citations & Metadata