                       T.C. Memo. 2000-125



                     UNITED STATES TAX COURT



                  ALVA H. BEACHY, Petitioner v.
          COMMISSIONER OF INTERNAL REVENUE, Respondent


     Docket No. 21899-97.               Filed April 10, 2000.


     Alva H. Beachy, pro se.

     William W. Kiessling, for respondent.



                       MEMORANDUM OPINION



     COUVILLION, Special Trial Judge: Respondent determined a

deficiency of $909 in petitioner's Federal income tax for 1994.

     The sole issue for decision is whether petitioner's earnings

from two trade or business activities and one farming activity
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are subject to self-employment tax under section 1401,1 or

whether such earnings are exempt under section 1402(g) by reason

of petitioner's conscientious objection to acceptance of benefits

under the Social Security system for death, disability, old age,

retirement, and other related benefits.

     This case was submitted by the parties fully stipulated

under Rule 122.   Those facts, with the annexed exhibits, are so

found and are incorporated herein by reference.    At the time the

petition was filed, petitioner's legal residence was Monterey,

Tennessee.

     During 1994, petitioner was engaged in three activities, the

earnings from which constituted net earnings from self-employment

as defined in section 1402(a).    The net earnings from two of

petitioner's activities were reported on his income tax return on

separate Schedules C, Profit or Loss From Business, and the other

activity was a farming activity, which he reported on a Schedule

F, Profit or Loss From Farming.    For 1994, petitioner realized

net earnings of $7,242 from the three activities.    Petitioner did

not file the tax return Schedule SE, nor did he pay any self-

employment tax on these earnings.

     Petitioner was not a minister; he was not a member of any


     1
           Unless otherwise indicated, section references are to
the Internal Revenue Code in effect for the year at issue, and
all Rule references are to the Tax Court Rules of Practice and
Procedure.
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religious order, sect, or division thereof, nor was he a

Christian Science practitioner.   From approximately 1958 to 1973,

petitioner had been a member of the Amish church.    In either 1972

or 1973, petitioner and several other members of the Amish church

were excommunicated because of differences over certain Biblical

teachings and doctrines.   Petitioner has never been readmitted

into the Amish church.

     In the notice of deficiency, respondent determined that

petitioner's net earnings from his three self-employment

activities during 1994 were subject to self-employment tax.

     Petitioner's sole basis for his position is stated in his

trial memorandum as follows:


     it is my sincere honest faith, and belief, that insurance
     and security programs do work contrary to the teachings of
     Jesus Christ. Jesus taught that we are not to take thought
     for our life as to what we should eat or wear, but that we
     rather sell what we have and give alms. * * * I do
     understand Social Security to be designed and programed much
     the same as insurance, and will provide for me in the
     future, when perhaps I do have a need.


On that basis, petitioner objects to the payment of taxes on

self-employment.

     Section 1401(a) imposes a tax on the self-employment income

of every individual for old age, survivors, and disability

insurance.   Section 1401(b) imposes a tax on the self-employment

income of every individual for hospital insurance.   In general,
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self-employment income consists of the net earnings derived by an

individual (other than a nonresident alien) from a trade or

business carried on by such individual.   See sec. 1402(a) and

(b); sec. 1.1401-1(c), Income Tax Regs.

     Section 1402(e), in pertinent part, provides an exemption

from the self-employment tax, for certain ministers, on self-

employment income derived from the performance of services as a

minister.   Section 1402(e)(1) provides this exemption to

ministers who file for the exemption pursuant to section

1402(e)(3).   Since petitioner was not a minister, this provision

is not applicable to petitioner.

     Section 1402(g) provides generally for an exemption from the

payment of self-employment tax by taxpayers who are

conscientiously opposed, on religious grounds, to accepting the

benefits of any private or public insurance.   In order to qualify

for the exemption, the taxpayer seeking such exemption must be a

member of a recognized religious sect or division thereof and

must adhere to the sect's or division's established tenets or

teachings that promote opposition to acceptance of the benefits

of private or public insurance.    Additionally, taxpayers seeking

the exemption must file, with the Internal Revenue Service, a

Form 4029, Application for Exemption From Social Security and

Medicare Taxes and Waiver of Benefits.    See sec. 1.1402(h)-1(b),

Income Tax Regs.   The mere filing of a return showing no self-
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employment income or self-employment tax shall not be considered

as an application for exemption.   See sec. 1.1402(h)-1(b), Income

Tax Regs.

     Petitioner is conscientiously opposed to the payment of

self-employment taxes because of the benefits provided by such

taxes in later years for disability, retirement, and the like.

Petitioner's beliefs are not those of a member of any religion or

sect because petitioner, during 1994, was not a member of a

religion or sect.   The exemption provided by section 1402(g) is

narrowly drawn and applies only to individuals who are members of

a recognized religious sect (or division thereof) and who adhere

to "established tenets or teachings of such sect or division by

reason of which [they are] conscientiously opposed to acceptance

of the benefits of any private or public insurance", and who file

an application for the exemption in the manner required by the

applicable regulations.   Despite the sincerity of petitioner's

personal convictions, they do not serve as a substitute for the

requirements of the statute.   See Hughes v. Commissioner, 81 T.C.

683 (1983); Randolph v. Commissioner, 74 T.C. 284 (1980); Henson

v. Commissioner, 66 T.C. 835 (1976); Palmer v. Commissioner, 52

T.C. 310 (1969); Grieve v. Commissioner, T.C. Memo. 1986-453.

Accordingly, the Court holds that petitioner is liable for self-

employment tax, under section 1401(a) and (b), on the $7,242 net

income from his self-employment activities during 1994.
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Respondent's determination is, therefore, sustained.



                                           Decision will be entered

                                      for respondent.
