TN 46 (09-24)

RS 01802.200 Trade or Business Exclusions — Background

1. a. 

   1950 Amendments

   A number of activities that are recognized as trades or businesses under the IRC for income tax purposes were excluded from the definition of “trade or business” when coverage was extended to some of the self-employed under the 1950 amendments. Some of the excluded activities were covered by subsequent amendments.

2. b. 

   1954 Amendments

   Extended mandatory coverage to accountants, architects, funeral directors, professional engineers, and voluntary coverage to Christian Science practitioners, ministers and members of religious orders, but only if they file a waiver certificate. Coverage also extended to persons engaged in agricultural activities.

3. c. 

   1956 Amendments

   Extended coverage to: lawyers, dentists, veterinarians, chiropractors, naturopaths, osteopaths and optometrists. Voluntary coverage extended to ministers who:

   • •

     Are citizens of U.S.

   • •

     Perform services in a foreign country

   • •

     Congregation predominantly U.S. citizens.

4. d. 

   1965 Amendments

   Coverage extended to Doctors of Medicine, and medical interns.

5. e. 

   1967 Amendments

   Coverage extended for services performed by:

   • •

     A duly ordained, commissioned or licensed minister of a church in the exercise of their ministry,

   • •

     A member of a religious order (other than a member who has taken a vow of poverty) in the exercise of duties required by such order, and

   • •

     Christian Science practitioners in the exercise of their profession, unless an exemption has been granted by the IRS.

Also, services by employees and public officers of state and local governments in positions compensated solely by fees, if such services are not covered by a section 218 coverage agreement.