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, 2025. (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, 2025, 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, 2025,(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.