Identification Number:
RM 04903 TN 1
Intended Audience:See Transmittal Sheet
Originating Office:DCO OCO OEIO DTPS
Title:Initial Processing
Type:POMS Transmittals
Program:All Programs
Link To Reference:
 

PROGRAM OPERATIONS MANUAL SYSTEM
Part RM – Records Maintenance
Chapter 049 – Exemption From Taxation on SEI
Subchapter 03 – Initial Processing
Transmittal No. 1, 11/04/2021

Audience

OEIO: DES/AWR Branch, DPBCPA;

Originating Component

OCO

Effective Date

Upon Receipt

Background

This POMS section is updated to improve the content for readability and tone.

Summary of Changes

RM 04903.001 Verify the Individual on the IRS Form 4029 Using the Numident

Revised section title for clarity.

1. Added background for section clarity.

2. Added instruction title.

3. Reformatted and revised instructions for flow, clarity and to add the complete steps of the Form 4029 verification process.

RM 04903.001 Verify the Individual on the IRS Form 4029 Using the Numident

 

BACKGROUND

The Social Security Amendments of 1965 and 1967 included a provision that exempted certain Religious Groups and their members from paying Social Security and Medicare Taxes and Waiver of Benefits. As a condition of this exemption, an individual must file an Internal Revenue Service (IRS) Form 4029, Application for Exemption From Social Security and Medicare Taxes and Waiver of Benefits. The Social Security Administration (SSA) certifies the exemption status of the religious group and its members, while IRS approves or disapproves the form. Each Form 4029 applicant requesting exemption status must be approved based on the exemption status of each Religious group or Sect.

The Religious Sects usually exempt will meet the following criteria:

  • recognized as being in existence continuously since December 31, 1950;

  • providing a reasonable level of living for its dependent members and;

  • are conscientiously opposed to public or private insurance.

The most recognizable groups which meet this criteria are the Anabaptists, the Mennonites, and the Amish.

The applicant submits the IRS Form 4029 in triplicate to the Security Records Branch (SRB) Religious Exemption Unit (REU) for processing. The Exemption Technician’s responsibility is to certify the exemption status of the group and its members and to verify the information provided by the applicant. All Form 4029s are entered into the Religious Exemption Database for tracking.

NOTE: The IRS Form 4029 must be completed in ink. Forms completed in pencil are returned to the applicant with an appropriate transmittal and a new form.

 

VERIFYING THE INDIVIDUAL ON THE FORM 4029

A review of the IRS Form 4029 must be made for a valid SSN.

 

A. Review of IRS Form 4029 for Valid Social Security Number (SSN)

If there is an SSN on the form, compare the individual’s name and SSN to the Numident:

  1. 1. 

    If the SSN is assigned to the individual named on the form,

    1. a. 

      Add the record to the Religious Exemption database. The following Form 4029 information should be entered into the database:

      • Name of applicant

      • Date of Birth

      • SSN

      • Date Form 4029 was received at SRB

      • Status of Form 4029 (Remarks are captured in the Status field)

    2. b. 

      Process the request.

  2. 2. 

    If the SSN is not assigned to the individual named on the form,

    1. a. 

      Place a copy of the submitted Form 4029 in the Religious Exemption Unit (REU) pending file.

    2. b. 

      Return the Form 4029 to the applicant under the appropriate routing transmittal and include the applicant's local SSA field office address and telephone number.

    3. c. 

      Add the record to the Religious Exemption database.

 

B. Receipt of IRS Form 4029 with a Date of Birth (DOB) but without a SSN

If the IRS Form 4029 displays a date of birth (DOB) without a SSN , complete an Alphadent search of the individual using the name and DOB to locate the SSN. Verify the SSN using the Numident:

  1. 1. 

    If the correct SSN is found,

    1. a. 

      Place a copy of the submitted Form 4029 in the Religious Exemption Unit (REU) pending file.

    2. b. 

      Return the Form 4029 to the applicant under the appropriate routing transmittal and include the applicant's local SSA field office address and telephone number.

    3. c. 

      Add the record to the Religious Exemption database.

  2. 2. 

    If the correct SSN is not found,

    1. a. 

      Place a copy of the submitted Form 4029 in the Religious Exemption Unit (REU) pending file.

    2. b. 

      Return the Form 4029 to the applicant under the appropriate routing transmittal and include the applicant's local SSA field office address and telephone number.

    3. c. 

      Add the record to the Religious Exemption database.

 

C. Receipt of IRS Form 4029 without DOB and SSN

If the IRS Form 4029 is received without a date of birth (DOB) and SSN, complete an Alphadent search of the individual to attempt to locate the DOB and the SSN,

  1. 1. 

    If the DOB and SSN are found:

    1. a. 

      Verify the SSN using the Numident.

    2. b. 

      Attach a Numident printout to the retention copy of the Form 4029.

    3. c. 

      Write the correct DOB and SSN in red on the copy retained in the REU pending file.

    4. d. 

      Add the record to the Religious Exemption database.

    5. e. 

      Return the Form 4029 and any related correspondence using the appropriate transmittal to the applicant requesting the individual complete the DOB and SSN on the form and return it to confirm the information found is correct.

  2. 2. 

    If the DOB and SSN are not found,

    1. a. 

      Retain a copy of the submitted Form 4029 in the REU pending file.

    2. b. 

      Return the form 4029 to the applicant under the appropriate routing transmittal and include the applicant's local SSA field office address and telephone number.

 

D. Use of Obsolete Version of IRS Form 4029

If an obsolete version of the IRS Form 4029 is received,

  1. 1. 

    Follow the above instructions to verify the individual and review the form to ensure it contains complete and accurate information.

  2. 2. 

    Return the form received and the correct form version along with the appropriate transmittal sheet(s).

  3. 3. 

    Add the record to the Religious Exemption database.

 

E. Inappropriate Use of IRS Form 4029

If an inappropriate IRS Form 4029 is received, where the minister completes the Form 4029 instead of appropriately completing the Form 4361 (Application for Exemption From Self-Employment Tax for Use by Ministers, Members of Religious Orders and Christian Science Practitioners),

  1. 1. 

    Follow the above instructions to verify the individual and review the form to ensure it contains complete and accurate information.

  2. 2. 

    Return the form and correct form (Form 4361) along with the appropriate transmittal sheet(s).

  3. 3. 

    Add the record to the Religious Exemption database.

NOTE: All Form 4029s with or without an SSN should be entered into the database. The database will not accept a record if it does not have at least a DOB.

 


RM 04903 TN 1 - Initial Processing - 11/04/2021