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Hello and thank you for using Just Answer,Requesting the exemption and when the 4361 should be filed depends on the individual's reason. If they are a member of the clergy and have had the Self Employment earnings more than $400 in the past 2 years then they should have filed the 4361 by the due date of the return.
They can submit the 4361 and request the exemption but they will still need to pay the SE Tax for the prior 2 years (if any is owed)
so, they will automatically be denied the exemption for the prior two years?
Not a certainty.
If they are denied they would owe no tax on the prior years for SE
They are clergy correct?
I just wanted to make sure
Religious sects and clergy have different rules
it's a young married couple where the husband is a minister.
If he wants to be exempt then tell him to file the form
The iRS may allow and send him the approved 4361
Then he would not have to worry about it
he does and basically what has happened is this:
in 2011, he informed his employer (the church) that he was opting out of social security.
From that point on, no FICA has been withheld from his pay or paid by the church.
HOWEVER, he has not filed the 4361.
One sec, let me see something in my older files
The best I can find is Section 1402(e)(3) that contains the requirements for timely filing an application
There was a case where the court ruled a minister was allowed but that minister had left the service for 5 years
Yeah - I think that I saw that as well...
Probably the best option is to file the form and hope for the best..?
As he is still so close to teh 2 years they may accept it
I know that is no gaurantee but
I unfortunately would not be able to issue that
yeah...that is what I am thinking too....
I know that you cannot guarantee, I was just looking for another opinion...
I just hate to not have a certain direction for you
I think that he has at least a chance of acceptance
Based on the current time frame
Section 1402(e)(3) of the Code provides, generally, that any application for exemption from self employment taxes must be filed by the later of the due date (including extensions) of the taxpayer’s income tax return for the second taxable year for which the minister has net earnings from self-employment of $400 or more
I wonder if he prepares his own taxes?
If he had filed an extension, he would be within the time frame.
Yes, he does prepare his own tax returns..
He may want, and fast, to get professional assistamce in filing the 4361
ok - you think that would help as opposed to him completing the paperwork himself?
It will not hurt. The form needs to be completed accurately so as not to delay the process.
At this point if he thinks he can handle it fine but he has already made assumptions that were not correct
I hear you.
I sincerely XXXXX XXXXX receives a positive responce
Thank you for your assistance...
You are most welcome
Your positive rating is always thanks enough.