There is an appeal process for being denied the 4361 minister exemption. If a minister, member of a religious order, or Christian Science practitioner is denied the exemption from self-employment tax under section 1402(e), they have the right to an administrative review and appeal process.

1. Initial Administrative Review: The individual must request an administrative review in writing by the office that denied the exemption. This request must be made within 30 calendar days of the date of the denial letter. The response should address the reasons for the denial, include supporting documentation, and be signed. During this review process, the denial remains in effect. Upon receipt of a timely written response, the IRS reevaluates the denial and may either issue an acceptance letter or a subsequent denial letter.

2. Appeal to IRS Independent Office of Appeals: If the initial administrative review upholds the denial, the individual can appeal the decision to the IRS Independent Office of Appeals. This appeal must also be in writing, signed, and submitted within 30 calendar days of the date of the subsequent denial letter. The appeal should contain a detailed explanation addressing the denial and include supporting documentation.

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Clergy Financial Resources
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Clergy Financial Resources serves as a resource for clients to help analyze the complexity of clergy tax law, church payroll & HR issues. Our professionals are committed to helping clients stay informed about tax news, developments and trends in various specialty areas.

This article is intended to provide readers with guidance in tax matters. The article does not constitute, and should not be treated as professional advice regarding the use of any particular tax technique. Every effort has been made to assure the accuracy of the information. Clergy Financial Resources and the author do not assume responsibility for any individual’s reliance upon the information provided in the article. Readers should independently verify all information before applying it to a particular fact situation, and should independently determine the impact of any particular tax planning technique. If you are seeking legal advice, you are encouraged to consult an attorney.

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Clergy Financial Resources
11214 86th Avenue N.
Maple Grove, MN 55369

Tel: (888) 421-0101 
Fax: (888) 876-5101
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