H.R. 227 - Clergy Act: Social Security Exemption Revocation

H.L.C.

Union Calendar No. H. R. 227

119 CONGRESS TH 1 ST ESSION

[Report No. 119-]

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

7, 2025 ANUARY Mr. F(for himself, Mr. Tof California, and Mr. K of SONGDHOMPSON JELLY Pennsylvania) introduced the following bill; which was referred to the Committee on Ways and Means --, 2025 ECEMBER 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 January 7, 2025]

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H.L.C.

A BILL

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

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H.L.C.

Be it enacted by the Senate and House of Representa-1 tives of the United States of America in Congress assembled, 2

SECTION 1. SHORT TITLE. 3

This Act may be cited as the ''Clergy Act''. 4

SEC. 2. REVOCATION BY MEMBERS OF THE CLERGY OF EX-5 EMPTION FROM SOCIAL SECURITY COV-6 ERAGE. 7

.--Notwithstanding section 1402(e)(4) 8(a) IGNENERAL of the Internal Revenue Code of 1986, any exemption which 9 has been received under section 1402(e)(1) of such Code by 10 a duly ordained, commissioned, or licensed minister of a 11 church, a member of a religious order, or a Christian 12 Science practitioner, and which is effective for the taxable 13 year in which this Act is enacted, may be revoked by filing 14 an application therefor (in such form and manner, and 15 with such official, as may be prescribed by the Commis-16 sioner of Internal Revenue), if such application is filed no 17 later than the due date of the Federal income tax return 18 (including any extension thereof) for the applicant's second 19 taxable year beginning after December 31, 2028. Any such 20 revocation shall be effective (for purposes of chapter 2 of 21 the Internal Revenue Code of 1986 and title II of the Social 22 Security Act (42 U.S.C. 401 et seq.)), as specified in the 23 application, either with respect to the applicant's first tax-24 able year beginning after December 31, 2028, or with re-25

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H.L.C.

spect to the applicant's second taxable year beginning after 1 such date, and for all succeeding taxable years; and the ap-2 plicant for any such revocation may not thereafter again 3 file an application for an exemption under such section 4 1402(e)(1). If the application is filed after the due date of 5 the applicant's Federal income tax return for a taxable year 6 and is effective with respect to that taxable year, it shall 7 include or be accompanied by payment in full of an amount 8 equal to the total of the taxes that would have been imposed 9 by section 1401 of the Internal Revenue Code of 1986 with 10 respect to all of the applicant's income derived in that tax-11 able year which would have constituted net earnings from 12 self-employment for purposes of chapter 2 of such Code (not-13 withstanding paragraphs (4) and (5) of section 1402(c)) ex-14 cept for the exemption under section 1402(e)(1) of such 15 Code. 16 (b) E .--Subsection (a) shall apply 17 D FFECTIVE ATE with respect to service performed (to the extent specified in 18 such subsection) in taxable years beginning after December 19 31, 2028, and with respect to monthly insurance benefits 20 payable under title II of the Social Security Act on the basis 21 of the wages and self-employment income of any individual 22 for months in or after the calendar year in which such indi-23 vidual's application for revocation (as described in such 24 subsection) is effective (and lump-sum death payments pay-25

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H.L.C.

able under such title on the basis of such wages and self- 1 employment income in the case of deaths occurring in or 2 after such calendar year). 3

SEC. 3. REPORT TO CONGRESS. 4

Not later than 90 days after the date of enactment of 5 this Act, the Commissioner of Internal Revenue, in con-6 sultation with the Commissioner of Social Security, shall 7 develop and submit to the Committee on Ways and Means 8 of the House of Representatives and the Committee on Fi-9 nance of the Senate a plan to inform duly ordained, com-10 missioned, or licensed ministers of a church, members of 11 a religious order, and Christian Science practitioners of 12 their eligibility to revoke any prior election of exemption 13 from Social Security participation. 14

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