Olsen v. Commissioner

1982 T.C. Memo. 340, 44 T.C.M. 164, 1982 Tax Ct. Memo LEXIS 397
United States Tax Court·Decided June 21, 1982·No. Docket Nos. 10954-79, 10955-79.·Unpublished

Opinion

FRANK T. OLSEN AND LOIS E. OLSEN, Petitioners v. COMMISSIONER OF INTERNAL REVENUE, Respondent
Olsen v. Commissioner
Docket Nos. 10954-79, 10955-79.
United States Tax Court
T.C. Memo 1982-340; 1982 Tax Ct. Memo LEXIS 397; 44 T.C.M. (CCH) 164; T.C.M. (RIA) 82340;
June 21, 1982.
*397

Petitioner, a minister, did not file an appropriate application for exemption from payment of self-employment tax within the time limits set forth in sec. 1402(e), I.R.C. 1954. Held, application of the self-employment tax does not violate petitioner's First Amendment rights. Henson v. Commissioner,66 T.C. 835, 838 (1976). Held further, the time requirements for filing an application provided in sec. 1402(e)(2) do not violate the Fifth Amendment.

Charles E. Craze,Daniel J. Loomis, and Brian Thompson, for the petitioners.
David D. Dahl, for the respondent.

STERRETT

MEMORANDUM FINDINGS OF FACT AND OPINION

STERRETT, Judge: By notices of deficiency dated April 23, 1979 respondent determined deficiencies in petitioners' Federal income taxes as follows:

DocketTaxable year
No.Petitionerended Dec. 31,Deficiency
10954-79Frank T. Olsen and
Lois E. Olsen1977$800.27
10955-79Frank T. Olsen and
Lois R. Olsen1976660.44

These cases have been consolidated for purposes of trial, briefing and opinion. The sole issue for our decision is whether petitioners are liable for self-employment tax imposed by section 1401, I.R.C. 1954, with respect to compensation received by petitioner Frank T. Olsen during *398 the taxable years 1976 and 1977.

FINDINGS OF FACT

Some of the facts have been stipulated and are so found. The stipulation of facts and exhibits attached thereto are incorporated herein by this reference.

Petitioners Frank T. Olsen and Lois E. Olsen, husband and wife, resided in Wilmington, North Carolina at the time of filing their petitions herein. They filed joint Federal income tax returns for the calendar years 1976 and 1977. Lois E. Olsen is a party herein solely by reason of of her filing joint returns with Frank T. Olsen (hereinafter petitioner).

Petitioner was ordained as a minister in May 1968. He was employed as a Baptist minister during the taxable years in question. The first 2 years in which petitioner had net earnings from self-employment of $400 or more, some part of which was from services performed by him as a minister, were 1970 and 1971.

According to the records of the Internal Revenue Service, petitioner Frank T. Olsen first applied for exemption from self-employment tax by submitting a Form 4361, Application for Exemption from Self-Employment Tax for Use by Ministers, Members of Religious Orders, and Christian Science Practitioners, which was received *399 by the Internal Revenue Service Center at Memphis, Tennessee on May 8, 1978. By letter dated September 5, 1978 the Memphis Service Center informed petitioner that his application for exemption from self-employment tax, received on May 8, 1978, was not approved because the application was not filed timely.

In fact petitioner did fail to file the appropriate form requesting an exemption from the payment of self-employment tax within the applicable time limits set forth in section 1402.

With respect to his services as a minister, petitioner is opposed to the public insurance that makes payment in the event of death, disability, old-age or retirement, or makes payments toward the cost of, or provides services for, medical care. Petitioner also opposes payment of money to provide for such public insurance.

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Olsen v. Commissioner, 1982 T.C. Memo. 340, 44 T.C.M. 164, 1982 Tax Ct. Memo LEXIS 397 (tax 1982).

1982 T.C. Memo. 340 (Olsen v. Commissioner) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

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