Rev. Rul. 62-97

The Internal Revenue Service has been requested to state whether the performance of service as a doctor of osteopathy is excluded from the term `trade or business' for purposes of the Self-Employment Contributions Act of 1954 (chapter 2, subtitle A, Internal Revenue Code of 1954), as amended by the Social Security Amendments of 1956, under the circumstances set forth herein.

The taxpayer has a degree of Doctor of Osteopathy, but does not possess a degree of Doctor of Medicine. However, the board of medical examiners for the state in which the taxpayer performs his services is authorized by statute to license doctors of osteopathy to practice medicine and surgery to the same extent as a doctor of medicine, and the taxpayer was so licensed by this board.

Prior to the enactment of the Social Security Amendments of 1956, section 1402(c)(5) of the Self-Employment Contributions Act of 1954 excluded from the term `trade or business' the performance of service by an individual in the exercise of his profession as a physician, lawyer, dentist, osteopath, veterinarian, chiropractor, naturopath, optometrist, or Christian Science practitioner; or the performance of such service by a partnership. For taxable years ending after 1955, section 1402(c)(5) of the Act, as amended, excludes from the term `trade or business' the performance or service by an individual in the exercise of his profession as a doctor of medicine or Christian Science practitioner; or the performance of such service by a partnership. The designations of the excluded professions are given their commonly accepted meanings.

The legislative history of the amendment of the Self-Employment Contributions Act of 1954, whereby certain previously excluded professions were brought within the scope of its provisions, clearly indicates that it was the intention of the Congress to exclude only physicians who are doctors of medicine and specifically to extend self-employment coverage to doctors of osteopathy. See H. Conf. Rept. 2936, 84th Cong., 2d Sess., 27 (1956), 3 U.S. Cong. News 1956, 3954, 3958. The fact that a doctor of osteopathy may be authorized by a particular state statute to perform the same services as a doctor of medicine would appear to be immaterial, considering the intent of the Congress.

In view of the foregoing, it is held that services performed by a doctor of osteopathy, who is not a doctor of medicine within the commonly accepted meaning of that term, are not excepted from the term `trade or business' within the intendment of section 1402(c) of the Act, as amended. Accordingly, the income derived by a doctor of osteopathy from the practice of his profession is includible in computing his net earnings from self-employment notwithstanding that he was licensed to practice medicine and surgery.