Rev. Rul. 57-11

SECTION 1. PURPOSE.

The purpose of this Revenue Ruling is to set forth changes in procedures under section 3121(k) of the Federal Insurance Contributions Act (chapter 21, subtitle C, of the Internal Revenue Code of 1954, as amended by the Social Security Amendments of 1954) and section 403(a) and (b) of the Social Security Amendments of 1954, resulting from the amendment of those sections by the Social Security Amendments of 1956, approved August 1, 1956.

SEC. 2. SCOPE

The instructions in this Revenue Ruling are interim in nature and are subject to modification by regulations to follow. However, any such modification shall not render invalid any act performed pursuant to, and in accordance with, the provisions of this Revenue Ruling.

SEC. 3. STATUTORY PROVISIONS.

.01 Section 3121(k) of the Federal Insurance Contributions Act, as amended by the Social Security Amendments of 1956, provides, in part, as follows:

(k) EXEMPTION OF RELIGIOUS, CHARITABLE, AND CERTAIN OTHER OBLIGATIONS.-

(1) WAIVER OF EXEMPTION BY ORGANIZATION.-An organization described in section 501(c)(3) which is exempt from income tax under section 501(a) may file a certificate (in such form and manner, and with such official, as may be prescribed by regulations made under this chapter) certifying that it desires to have the insurance system established by title II of the Social Security Act extended to service performed by its employees and that at least two-thirds of its employees concur in the filing of the certificate. Such certificate may be filed only if it is accompanied by a list containing the signature, address, and social security account number (if any) of each employee who concurs in the filing of the certificate. Such list may be amended at any time prior to the expiration of the twenty-fourth month following the first calendar quarter for which the certificate is in effect, or at any time prior to January 1, 1959, whichever is the later, by filing with the prescribed official a supplemental list or lists containing the signature, address, and social security account number (if any) of each additional employee who concurs in the filing of the certificate. The list and any supplemental list shall be filed in such form and manner as may be prescribed by regulations made under this chapter. The certificate shall be in effect (for purposes of subsection (b)(8)(B) and for purposes of section 210(a)(8)(B) of the Social Security Act) for the period beginning with the first day of the calendar quarter in which such certificate is filed or the first day of the succeeding calendar quarter, as may be specified in the certificate, except that, in the case of service performed by an individual whose name appears on a supplemental list filed after the first month following the first calendar quarter for which the certificate is in effect, the certificate shall be in effect, for purposes of such subsection (b)(8) and for purposes of section 210(a)(8) of the Social Security Act, only with respect to service performed by such individual after the calendar quarter in which such supplemental list is filed.

.02 Section 403 of the Social Security Amendments of 1954, as amended by the Social Security Amendments of 1956, provides as follows:

SEC. 403. (a) IN ANY CASE IN WHICH-

(1) an individual has been employed, at any time subsequent to 1950 and prior to the enactment of the Social Security Amendments of 1956, by an organization which is described in section 501(c)(3) of the Internal Revenue Code of 1954 and which is exempt from income tax under section 501(a) of such Code but which has failed to file prior to the enactment of the Social Security Amendments of 1956 a valid waiver certificate under section 1426(l)(1) of the Internal Revenue Code of 1939 or section 3121(k)(1) of the Internal Revenue Code of 1954;

(2) the service performed by such individual as an employee of such organization during the period subsequent to 1950 and prior to 1957 would have constituted employment (as defined in section 210 of the Social Security Act and section 1426(b) of the Internal Revenue Code of 1939 or section 3121(b) of the Internal Revenue Code of 1954, as the case may be, at the time such service was performed) if such organization had filed prior to the performance of such service such a certificate accompanied by a list of the signatures of employees who concurred in the filing of such certificate and such individual's signature had appeared on such list;

(3) the taxes imposed by sections 1400 and 1410 of the Internal Revenue Code of 1939 or sections 3101 and 3111 of the Internal Revenue Code of 1954, as the case may be, have been paid with respect to any part of the remuneration paid to such individual by such organization for such service;

(4) part of such taxes have been paid prior to the enactment of the Social Security Amendments of 1956;

(5) so much of such taxes as have been paid prior to the enactment of the Social Security Amendments of 1956 have been paid by such organization in good faith and upon the assumption that a valid waiver certificate had been filed by it under section 1426(l)(1) of the Internal Revenue Code of 1939 or section 3121(k)(1) of the Internal Revenue Code of 1954, as the case may be; and

(6) no refund of such taxes has been obtained, the amount of such remuneration with respect to which such taxes have been paid shall, upon the request of such individual (filed in such form and manner, and with such official, as may be prescribed by regulations under chapter 21 of the Internal Revenue Code of 1954), be deemed to constitute remuneration for employment as defined in section 210 of the Social Security Act and section 1426(b) of the Internal Revenue Code of 1939 or section 3121(b) of the Internal Revenue Code of 1954, as the case may be.

(b) IN ANY CASE IN WHICH-

(1) an individual has been employed, at any time subsequent to 1950 and prior to the enactment of the Social Security Amendments of 1956, by an organization which has filed a valid waiver certificate under section 1426(l)(1) of the Internal Revenue Code of 1939 or section 3121(k)(1) of the Internal Revenue Code of 1954;

(2) the service performed by such individual during the time he was so employed would have constituted employment (as defined in section 210 of the Social Security Act and section 1426(b) of the Internal Revenue Code of 1939 or section 3121(b) of the Internal Revenue Code of 1954, as the case may be, at the time such service was performed) if such individual's signature had appeared on the list of signatures of employees who concurred in the filing of such certificate;

(3) the taxes imposed by sections 1400 and 1410 of the Internal Revenue Code of 1939 or sections 3101 and 3111 of the Internal Revenue Code of 1954, as the case may be, have been paid prior to the enactment of the Social Security Amendments of 1956 with respect to any part of the remuneration paid to such individual by such organization for such service; and

(4) no refund of such taxes has been obtained, the amount of such remuneration with respect to which such taxes have been paid shall, upon the request of such individual (filed on or before January 1, 1959, and in such form and manner, and with such official, as may be prescribed by regulations made under chapter 21 of the Internal Revenue Code of 1954), be deemed to constitute remuneration for employment as defined in section 210 of the Social Security Act and section 1426(b) of the Internal Revenue Code of 1939 or section 3121(b) of the Internal Revenue Code of 1954, as the case may be, and such individual shall be deemed to have concurred in the filing of the waiver certificate filed by such organization under section 1426(l)(1) of the Internal Revenue Code of 1939 or section 3121(k)(1) of the Internal Revenue Code of 1954.

SEC. 4. SUPPLEMENTAL LISTS FILED UNDER SECTION 3121(k), AS AMENDED.

.01 In general .-Pursuant to section 3121(k), as amended by section 201(k) of the Social Security Amendments of 1956, a properly completed and signed supplemental list on Form SS-15a Supplement, Amendment to List on Form SS-15a, filed on or after August 1, 1956, will be accepted as a valid amendment to the list on Form SS-15a, List to Accompany Certificate on Form SS-15 Waiving Exemption From Taxes Under the Federal Insurance Contributions Act, if it is filed before the end of the twenty-fourth month following the first calendar quarter for which the certificate on Form SS-15, Certificate Waiving Exemption From Taxes Under the Federal Insurance Contributions Act, is in effect, or at any time prior to January 1, 1959, whichever is the later.

.02 Supplemental lists filed prior to August 1, 1956 .-Section 3121(k) in effect prior to the enactment of the Social Security Amendments of 1956, August 1, 1956, provided that a supplemental list, in order to constitute a valid amendment to the list on Form SS-15a, must be filed within the 24-month period prescribed by such section. The language `or at any time prior to January 1, 1959, whichever is the later,' which was added to section 3121(k) by the Social Security Amendments of 1956, has no application to supplemental lists filed prior to August 1, 1956. Accordingly, the provisions of section 31.3121(k)-1 of the regulations issued under the Federal Insurance Contributions Act are applicable in the case of a supplemental list filed prior to August 1, 1956.

.03 Supplemental lists filed on or after August 1, 1956 .-Section 201(k) of the Social Security Amendments of 1956 amended section 3121(k) of the extent that any supplemental list filed on or after August 1, 1956, and prior to January 1, 1959 (regardless of the effective date of the certificate previously filed by the organization), will constitute a valid amendment even though the supplemental list is not filed within the 24-month period. If a supplemental list is filed prior to the end of the first month following the first calendar quarter for which the certificate is in effect, the certificate will be effective, in the case of any individual whose name appears on such supplemental list, with respect to services performed on and after the effective date of the certificate. If the supplemental list is filed after the first month following the first calendar quarter for which the certificate is in effect, the certificate will be effective, in the case of an individual whose name appears on such supplemental list, with respect to services performed after the calendar quarter in which the supplemental list is filed.

.04 Reopening of cases involving prior invalid amendments .-District Directors of Internal Revenue are not required to initiate any action with respect to the reopening of cases involving supplemental lists filed prior to August 1, 1956, which were invalid for the reason that they were not filed within the 24-month period. However, the amendment of section 3121(k) now makes it possible for organizations to submit new supplemental lists at any time prior to January 1, 1959.

SEC. 5. CERTIFICATES FILED UNDER SECTION 3121(k), AS AMENDED.

.01 In general .-Pursuant to section 3121(k), as amended by section 201(l) of the Social Security Amendments of 1956 a certificate on Form SS-15 shall be in effect for the period beginning with the first day of the calendar quarter in which it is filed or the first day of the succeeding calendar quarter, whichever is specified by the organization. The amendment is effective with respect to certificates filed after 1956.

.02 Certificates filed prior to January 1, 1957 .-A certificate filed prior to January 1, 1957, is in effect for the period beginning with the first day of the calendar quarter following the close of the calendar quarter in which it is filed. The language `the first day of the calendar quarter in which such certificate is filed,' which was added to section 3121(k) by the Social Security Amendments of 1956, has no application to certificates filed prior to January 1, 1957.

03. Certificates filed on or after January 1, 1957 .-An organization which files a certificate on or after January 1, 1957, shall specify whether the certificate is to be in effect for the period beginning with the first day of the calendar quarter in which it is filed or the first day of the succeeding calendar quarter. Form SS-15 (Revised January (1957), which will be available from District Directors on January 1, 1957, will provide a space for the insertion of the appropriate date.

SEC. 6. REQUESTS OF INDIVIDUALS UNDER SECTION 403(a) AS AMENDED BY SOCIAL SECURITY AMENDMENTS OF 1956.

.01 In general .-Pursuant to section 403(a) of the Social Security Amendments of 1954, as amended, an individual who, as an employee, performed services after December 31, 1950, and prior to August 1, 1956, for an organization which failed to file prior to August 1, 1956, a valid certificate on Form SS-15 may, under certain circumstances, request that the remuneration received by him for services performed after 1950 and before 1957 be deemed to constitute remuneration for employment for purposes of the taxes imposed under the Federal Insurance Contributions Act and for purposes of title II of the Social Security Act.

.02 Procedure and rules applicable to the filing of the requests under section 403(a), as amended .-In general, the procedures and rules outlined in section 408.216(c) of Regulations 128, as added by Treasury Decision 6176, approved May 24, 1956, C.B. 1956-1, 661, relating to the execution and filing of requests under section 403(a) of the Social Security Amendments of 1954, the optional tax payments by the organization, and the effect of the requests, are equally applicable to requests filed under section 403(a), as amended. However, in applying these provisions it should be borne in mind that section 403(a), as amended, is applicable to services performed by an individual prior to January 1, 1957 (if some service was performed by the individual prior to August 1, 1956), and that the organization must have failed to file a valid waiver certificate prior to August 1, 1956.

SEC. 7. REQUESTS OF INDIVIDUALS UNDER SECTION 403(b) AS AMENDED BY THE SOCIAL SECURITY AMENDMENTS OF 1956.

.01 In general .-Pursuant to section 403(b) of the Social Security Amendments of 1954, as amended, an individual who, as an employee, performed services after December 31, 1950, and prior to August 1, 1956, for an organization which filed a valid certificate but who failed to sign the list of concurring employees, may, under certain circumstances, request on or before January 1, 1959, that the remuneration received by him for such services be deemed to constitute remuneration for employment for purposes of the taxes imposed under the Federal Insurance Contributions Act and for purposs of title II of the Social Security Act.

.02 Procedure and rules applicable to the filing of the requests under section 403(b), as amended .-In general, the procedures and rules outlined in section 408.216(d) of Regulations 128, as added by Treasury Decision 6176, supra , relating to the execution and filing of requests under section 403(b) of the Social Security Amendments of 1954 and the effect of such requests, are equally applicable to requests filed under section 403(b), as amended. However, in applying these provisions is should be borne in mind that section 403(b), as amended, is applicable to services performed by an individual prior to August 1, 1956, and that the individual has until January 1, 1959, within which to file his request.