Pastor Liable For Self-Employment Tax

In Rogers v. Commissioner, (TC, Aug. 1, 2013), the United States Tax Court held that a pastor at the Pentecostals of Wisconsin is liable for self-employment tax on $43,200 in home mortgage, utility and credit card payments made on his behalf by his church.  He argued that members of religious orders who have taken a vow of poverty are not subject to tax on income received as agents of the orders of which they are members.  However, the court concluded that here the taxpayer was never paid a salary by a third party that he remitted to his church. Instead, the church merely paid some of his expenses. The payments were not properly designated as a parsonage allowance, nor did petitioner file the required certificate to exempt himself from self-employment tax under Sec. 1402(e). [Thanks to Steven H. Sholk for the lead.]