employees of an organization which is exempt from income tax under section 501 (a) of the Internal Revenue Code of 1954 as a religious, charitable, educational, or other organization described in section 501 (c) (3) of the Code. SEC. 2. FILING OF WAIVER CERTIFICATE BY AN ORGANIZATION WHICH HAS BEEN HELD EXEMPT. Services performed by an employee for an organization which has been held by the Internal Revenue Service to be exempt from income tax as an organization described in section 501 (c) (3) of the Code are excepted from employment under section 3121(b) (8) (B) of the Federal Insurance Contributions Act (ch. 21, subtitle C, of the Code), and are therefore not subject to the taxes imposed by that Act. Under section 3121 (k) of the Act, however, the organization may file a Form SS-15, Certificate Waiving Exemption from Taxes under the Federal Insurance Contributions Act, certifying that it desires to have the Federal insurance system established by the Social Security Act extended to services performed by its employees. The organization should file the Form SS-15 with the Internal Revenue office with which the organization files Form 941, Employer's Quarterly Federal Tax Return. The Form SS-15 must be accompanied by a Form SS-15a, List to Accompany Certificate on Form SS-15 Waiving Exemption from Taxes under the Federal Insurance Contributions Act, containing the signature, address, and social security number (if any) of each employee or former employee who concurs in the filing of the certificate. SEC. 3. EFFECTIVE DATE OF WAIVER CERTIFICATE. The waiver certificate on Form SS-15 may be made effective for whichever of the following dates the organization designates on the certificate: (a) The first day of the calendar quarter in which the certificate is filed: (b) The first day of the calendar quarter succeeding the quarter in which the certificate is filed; or (c) The first day of any one of 20 calendar quarters preceding the calendar quarter in which the certificate is filed. If the waiver certificate is effective for one or more calendar quarters prior to the quarter in which the certificate is filed, the organization will be required to pay the employer and employee taxes applicable under the Federal Insurance Contributions Act to wages paid to concurring employees during those periods. The due date for the return and payment of the taxes is the last day of the month following the calendar quarter in which the certificate is filed. SEC. 4. COVERAGE OF EMPLOYEES UNDER THE FORM SS-15. .01 Individuals Who Sign.-An individual who is in the employ of the organization on or before the last day of the calendar quarter in which the Form SS-15 is filed will be covered by reason of the Form SS-15 under the following rules: (a) The individual's services on or after the first date for which the Form SS-15 is effective will be covered if he signs the Form SS-15a which is filed with the Form SS-15 or if he signs a Form SS-15a Supplement, Amendment to List on Form SS-15a, which is filed on or before the last day of the month immediately following the calendar quarter in which the Form SS-15 is filed. (b) The individual will be covered as of the first day of the calendar quarter in which a Form SS-15a Supplement, signed by such individual, is filed, if the Form SS-15a Supplement is filed after the close of the first month but before the close of the 24th month following the calendar quarter in which the Form SS-15 is filed. .02 Employees Who Do Not Sign. An individual is automatically covered, without the necessity of signing any form, if he becomes an employee on or after the first day following the close of the calendar quarter in which the organization files the Form SS-15. The automatic coverage also applies to any employee who does not sign the Form SS-15a but who leaves the employ of the organization and is rehired on or after such date. The automatic coverage does not apply, however, to an individual who is hired after the filing of the Form SS-15 but prior to the first day following the close of the calendar quarter in which the certificate is filed, and who remains continuously in the employ of the organization. To obtain coverage, an individual hired during this period must sign a Form SS-15a Supplement. An individual who is an employee of an organization at the time the Form SS-15 is filed, who remains continuously in the employ of the organization thereafter, and who does not sign the Form SS-15a or Form SS-15a Supplement, does not have coverage as to services performed for that organization. .03 Earnings Less Than $50 in Calendar Quarter.-Services performed in any calendar quarter by an employee of the organization are not covered under the Federal Insurance Contributions Act if the remuneration for the services is less than $50. The test relating to remuneration of $50 is based on the remuneration earned by the employee during a calendar quarter rather than on the remuneration paid in a calendar quarter. This $50 test applies to each employee of the organization. .04 Ministers and Members of Religious Orders.-If the individua who performs services for the organization is an ordained, licensed, or commissioned minister of a church performing services in the exercis of his ministry, or if he is a member of a religious order performing services in the exercise of duties required by the order, his services will not be covered for social security purposes under the Federal Insurance Contributions Act. However, if the minister or member of the religions order performs services for the organization which are not in the exercise of the ministry or are not required by the religious order, the services will be covered by the Act under the same rules that apply to any other employee of the organization. For a discussion of the meaning of services in the exercise of the ministry or of duties required by a religious order, see section 31.3121(b) (8)-1 of the Employment Tas Regulations (Treasury Decision 6190, C.B. 1956–2, 605, at page 648). If a minister, a member of a religious order who has not taken a vow of poverty, or a Christian Science practitioner, has previously elected social security coverage under the Self-Employment Contributions Act (ch. 2, subtitle A, of the Code) by filing a valid Form 202 (Waiver Certificate to Elect Social Security Coverage for Use by Ministers, Certain Members of Religious Orders, and Christian Scien Practitioners), his earnings from the organization will be covered for social security purposes under the provisions of the Self-Employment Contributions Act. If the individual has not previously elected such coverage, he may do so provided he files the Form 2031 on or before the due date or any extension thereof of the tax return for the second taxable year ending after 1954 in which he had net earnings of $400 or more, any part of which was derived from the exercise of his ministry or the duties required by the religious order. SEC. 5. COVERAGE FOR INDIVIDUALS WHO ARE NO LONGER EMPLOYEES. If the organization obtains retroactive coverage by indicating an effective date for a period which began before the filing of the Form SS-15 waiver certificate, it may notify any individual who left its employ between the retroactive effective date of the certificate and the filing date of the certificate that he may sign the Form SS-15a in order that remuneration for his services in the employ of the organization during that period will be taken into account for purposes both of social security coverage and of the taxes imposed by the Federal Insurance Contributions Act. The due date of the taxes is stated in section 3. SEC. 6. FILING OF FORM SS-15 WHEN AN ORGANIZATION HAS NOT AS YET BEEN RULED EXEMPT. An organization which believes it is an organization of the type. described in section 501 (c) (3) of the Code may file a waiver certificate on Form SS-15, accompanied by a Form SS-15a bearing the signature of each employee (if any) who concurs in the filing of the certificate, even though a ruling has not as yet been issued by the Internal Revenue Service on the organization's income tax status as a section 501 (c) (3) organization. If the organization files a Form SS-15, it should report and pay the employer and employee taxes under the Federal Insurance Contributions Act. If the Service determines that the organization is exempt from income tax as an organization described in section 501 (c) (3), the waiver certificate is effective without further action. If an organization files a waiver certificate on Form SS-15 and the Service thereafter determines that the organization is not exempt from income tax as an organization described in section 501 (c) (3) of the Code, the organization should ascertain whether or not it has paid the correct amount of taxes under the Federal Insurance Contributions Act. If, for example, one or more employees did not sign Form SS-15a, and therefore no tax was paid with respect to such employees the organization should report and pay the additional tax due. SEC. 7. LIABILITY OF ORGANIZATION FOR THE TAX UNDER THE FEDERAL UNEMPLOYMENT TAX ACT. An organization which is exempt from income tax under section 501 (a) of the Code as an organization described in section 501 (c) (3) of the Code is exempt from the tax under the Federal Unemployment Tax Act (ch. 23, subtitle C, of the Code). There is no provision in the Act permitting an organization to file a certificate waiving its exemption from the Federal unemployment tax. If the organization wishes to obtain State unemployment insurance coverage for its employees, an inquiry should be directed to the State unemployment insurance agency. SEC. 8. ORGANIZATION WHICH DOES NOT DESIRE SOCIAL SECURITY COVERAGE FOR ITS EMPLOYEES. If an organization which does not desire social security coverage for its employees has applied for exemption from income tax as an organization described in section 501(c)(3) of the Code and has submitted sufficient information to enable the Service to issue a ruling, it will ordinarily be permitted, during the period the Service is considering its status, to refrain from reporting and paying the taxes under the Federal Insurance Contributions Act and under the Federal Unemployment Tax Act. (For further discussion, see Revenue Procedure 57-29, sec. 6, C.B. 1957-2, 1099, at 1102.) SEC. 9. ORGANIZATION NOT QUALIFIED TO FILE FORM SS-15. A wholly owned instrumentality of a State, or of a political subdivision thereof, is not qualified to file Form SS-15 even though it has been granted exemption from income tax as an organization described in section 501(c)(3) of the Code. Such an instrumentality should communicate with the appropriate State official for information on reporting and acquiring Social Security coverage. SEC. 10. EFFECT ON OTHER DOCUMENTS. Sections 7 and 8 of this Revenue Procedure provide for all procedure stated in Mimeograph 5019, C.B. 1940-1, 198, which has any applicability under current law. Inasmuch as Mimeograph 5019 has no other applicability to current law or procedure, it is superseded. 26 CFR 601.602: Forms and instructions. Rev. Proc. 67 Furnishing bulk quantities of forms to preparers of tax returns. SECTION 1. PURPOSE. This Revenue Procedure establishes a handling and shipping charge for processing requests for bulk quantities (over four pounds) of tax forms. This charge only applies to those engaged in the preparation e tax returns for private gain. SEC. 2. BACKGROUND. .01 From 1957 through 1965 shipments of tax forms in excess d four pounds supplied at the request of those engaged in providig taxpayer assistance for private gain were shipped c.o.d. This syste had shortcomings as the recipient did not know either the exact tire of delivery or the amount of the c.o.d. charges. .02 In 1966 this system was modified by establishing a user charg to be paid by Tax Practitioners, CPA's, lawyers or other pers desiring to have their name placed on the District Director's Tax Pr titioners Mailing List. For an annual fee of $1.00 persons on the ma ing list were entitled to (1) an advanced tax forms pamphlet (Packa X), (2) prepaid shipment of up to 10 pounds of income tax forms a: (3) special releases regarding tax information from their District Director. SEC. 3. GENERAL. .01 The charge of $1.00 for placement on the mailing list is rescinded. Names will be maintained on the list without charge. .02 Those persons on the District Director's Tax Practitioners Mailing List will continue to receive free of charge (1) an advanced tax forms pamphlet (Package X) in October of each year and (2) special releases regarding tax information from their District Director. .03 Persons not on the mailing list who desire to be placed on the mailing list should write to their District Director and furnish the following information: Name, assigned Employer Identification (otherwise, your Social Security) Number, and address including zip code. .04 This mailing list will be updated each year to eliminate mailings to incorrect addresses or to persons no longer desiring the printed material. A mailing address verification Form 4193 (Notice of Change in Information on Tax Practitioners Mailing List) will be forwarded this year to those on the District Director's Tax Practitioners Mailing List. If the reply form is not returned it will be assumed that the addressee no longer wishes to remain on the mailing list. SEC. 4. SCHEDULE OF CHARGES. .01 The schedule of charges for handling and shipping bulk quantities (over four pounds) of tax forms is: Weight Up to but not exceeding 4 lbs Over 4 lbs. but not exceeding 10 lbs Over 10 lbs. but not exceeding 20 lbs----- Charge No charge. $1.00 additional. .02 Package X will contain Form 2333, Request for Blank Income Tax Forms. The instructions on Form 2333 outline the handling and shipping charge for processing orders of bulk quantities of tax forms. Form 2333 provides an arithmetical formula so that the requestor may predetermine the weight of the tax forms being requested and the actual handling and shipping charge. .03 Checks, made payable to Internal Revenue Service, should be submitted with Form 2333 to the District Director's office. .04 It is not the intent of this Revenue Procedure to charge for blank forms, but rather for the handling and shipping of forms. Therefore, no charge will be made to persons who pick up forms at an Internal Revenue Service Office. .05 No shipping and handling charge will be made to banks, post offices, or other organizations requesting tax forms for the convenience. and use of individual taxpayers. SEC. 5. EFFECT ON OTHER DOCUMENTS. This Revenue Procedure supersedes Revenue Procedure 66-38, C.B. 1966-2, 1242. |