The bill would let certain clergy and religious practitioners revoke an existing exemption from Social Security coverage. They could choose for the change to start in their first or second tax year beginning after December 31, 2027. The change would continue in later years, and they could not later apply for the exemption again. The bill also directs the Internal Revenue Service to prepare a plan to inform eligible people about this option.
If you are an eligible clergy member or religious practitioner, you could apply to end your exemption by the tax return deadline for your second tax year beginning after December 31, 2027, including extensions. You would choose whether the change starts in your first or second tax year beginning after that date. If your application applies to a tax year after its return deadline, you must pay the full Social Security taxes due for that year with the application.
The bill does not specify administrative costs. People who revoke an exemption would owe applicable Social Security self-employment taxes. An application that takes effect for a tax year after the return deadline must include full payment of the taxes due for that year.
No publicly available information.
No publicly available information.