H.R. 227 — Clergy Act

This section authorizes a one-time revocation of an existing exemption from self-employment taxes under IRC §1402(e)(1)—which allows duly ordained, commissioned, or licensed ministers of a church, members of a religious order, or Christian Science practitioners to opt out of Social Security coverage on ministerial earnings (forgoing related benefits)—notwithstanding the prior permanent bar on revocation under IRC §1402(e)(4). (As background, the exemption applies only if approved before 1968 or in limited later cases and affects both taxes under IRC chapter 2 and benefits under SSA title II.) The application must be filed by the due date (including extensions) of the individual's federal income tax return for their second taxable year beginning after December 31, 2028, with revocation effective (as elected) for their first or second taxable year beginning after that date and all succeeding years; late applications effective for a given year require full payment of back self-employment taxes on applicable earnings for that year, and no further exemption may be requested.

This section directs the Commissioner of Internal Revenue, in consultation with the Commissioner of Social Security, to develop and submit to the House Committee on Ways and Means and the Senate Committee on Finance, not later than 90 days after enactment, 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 coverage. (Thus, these individuals, who may opt out of Social Security self-employment taxes, could resume coverage and restore benefits for themselves and dependents.)