Clergy Act

What this does

This bill reopens a window for clergy to undo an earlier choice to opt out of Social Security. Members of the clergy can exempt themselves from Social Security coverage on their ministerial earnings under section 1402(e) of the tax code. This bill lets those who already hold that exemption revoke it and pay back into the system. Eligibility is limited to ordained, commissioned, or licensed ministers, members of a religious order, and Christian Science practitioners whose exemption is in effect for the tax year the bill is enacted. To revoke, they file an application with the IRS no later than the return due date for their second taxable year beginning after December 31, 2028. The revocation takes effect for the first or second taxable year beginning after that date and cannot be reversed. Anyone who files late for a year already underway must pay the full self-employment taxes they would have owed for that year. Within 90 days of enactment, the IRS Commissioner, working with the Social Security Commissioner, must give Congress a plan to notify eligible clergy that they can revoke.