Frank T. Olsen and Lois E. Olsen v. Commissioner of Internal Revenue

Summary

The Fourth Circuit affirmed the Tax Court's decision upholding self-employment tax deficiencies assessed against a Baptist minister for 1976 and 1977. The court held that applying the tax did not violate the minister's free-exercise rights and that denying him a second opportunity to apply for an exemption under 26 U.S.C. § 1402(e), unlike the provision available under § 1402(g), did not violate due process or equal protection.

Holdings

1. Applying the self-employment tax to Olsen's ministerial income did not violate the Free Exercise Clause, even assuming that payment of the tax burdened his sincerely held religious beliefs.
2. The differing application deadlines and second-chance provision for exemptions under 26 U.S.C. § 1402(g), as compared with

Questions Presented

1. Whether applying the self-employment tax to Olsen's ministerial income violated his First Amendment right to the free exercise of religion.
2. Whether denying Olsen a second opportunity to apply for an exemption under 26 U.S.C. § 1402(e), when a second-chance provision existed under § 1402(g) for members of certain religious sects, violated due process or equal protection.