Clergy Act

Clergy Act

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 (IRS) for an irrevocable exemption and will not receive Social Security or Medicare benefits in retirement unless they have qualifying credits from other employment.

The IRS 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.

[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[H.R. 227 Introduced in House (IH)]

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119th CONGRESS
  1st Session
                                H. R. 227

   To allow a period in which members of the clergy may revoke their 
    exemption from Social Security coverage, and for other purposes.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                            January 7, 2025

  Mr. Fong (for himself, Mr. Thompson of California, and Mr. Kelly of 
Pennsylvania) 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.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Clergy Act''.

SEC. 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, 2027. 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, 2027, 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, 2027, 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).

SEC. 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.
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