Official Summaries

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

The Internal Revenue Service 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.

Current Full Text

[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[S. 639 Introduced in Senate (IS)]

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119th CONGRESS
  1st Session
                                 S. 639

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


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                           February 19, 2025

Mrs. Britt (for herself and Ms. Hassan) introduced the following bill; 
     which was read twice and referred to the Committee on Finance

_______________________________________________________________________

                                 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.--
            (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, 2027.
            (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, 2027, 
                                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, 2027,
            (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.

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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