Discussion

1. Business Expense Deductions

As stated, petitioners claimed deductions for payments to religious organizations on their Schedules C for the years 1990 and 1991. Respondent disallowed the deductions upon the ground that petitioners failed to establish that the payments were ordinary and necessary business expenses.

Respondent's determinations are presumed correct, and petitioners bear the burden of proving that such determinations are erroneous. Rule 142(a); Welch v. Helvering, 290 U.S. 111">290 U.S. 111, 290 U.S. 111">115 (1933). Furthermore, deductions are a matter of legislative grace, and the taxpayer bears the burden of proving that he or she is entitled to any deduction claimed. Rule 142(a); INDOPCO, Inc. v. Commissioner, 503 U.S. 79">503 U.S. 79, 503 U.S. 79">84 (1992); New Colonial Ice Co. v. Helvering, 292 U.S. 435">292 U.S. 435, 292 U.S. 435">440 (1934); 290 U.S. 111">Welch v. Helvering, supra.

In general, section 162(a) provides a deduction for all ordinary and necessary expenses paid or incurred by a taxpayer during the taxable year in 1996 Tax Ct. Memo LEXIS 140">*144 carrying on a trade or business. As used in section 162(a), "ordinary" has been defined as that which is "normal, usual, or customary" in the taxpayer's trade or business. Deputy v. DuPont, 308 U.S. 488">308 U.S. 488, 308 U.S. 488">495 (1940). "Necessary" has been construed to mean "appropriate" or "helpful" in the development of the taxpayer's business. 290 U.S. 111">Welch v. Helvering, supra.

Petitioner did not adequately explain why the payments were appropriate or helpful to his business, or how he expected them to produce commensurate benefits for his business, and we fail to see how such payments could be considered normal, usual, or customary in the operation of a piano service and sales business. Because petitioners have failed to establish that the payments were ordinary and necessary business expenses within the meaning of section 162(a), respondent's adjustment disallowing the business deduction for each year is sustained. ²

1996 Tax Ct. Memo LEXIS 140">*145 2. Self-Employment Tax

In addition to other taxes, section 1401 imposes a tax on the self-employment income of an individual. With the exception of circumstances not present here, section 1402(b) defines self-employment income as net earnings from self-employment derived by an individual. Sec. 1402(b)(2). The term "net earnings from self-employment" means gross income derived by an individual from any trade or business carried on by such individual, less allowed deductions attributable to such trade or business. Sec. 1402(a). Petitioner agrees that but for his religious convictions, the income earned in connection with his piano service and sales business would be subject to self-employment tax. Petitioner argues, however, that he is exempt from self-employment tax based upon his religious beliefs.

Section 1402(g) provides an exemption from payment of the self-employment tax to taxpayers conscientiously opposed to accepting the benefits of any private or public insurance on religious grounds if certain requirements are met. ³ Among these requirements, the taxpayer seeking an exemption must be a member of a recognized religious sect or division thereof and must adhere to 1996 Tax Ct. Memo LEXIS 140">*146 the sect's or division's established tenets or teachings that promote opposition to acceptance of the benefits of private or public insurance. Taxpayers seeking the exemption must file a Form 4029 with the Internal Revenue Service. Sec. 1.1402(h)-1(b), Income Tax Regs. Petitioners bear the burden of proving their entitlement to the exemption. Rule 142(a).

1996 Tax Ct. Memo LEXIS 140">*147 The Form 4029 prepared by petitioner and filed with the Internal Revenue Service represented that petitioner had continuously been a member of the Church of Jesus Christ since 1977, and that as a follower of the established teachings of that organization, he conscientiously opposed being covered under private or public insurance programs. At trial, however, petitioner admitted that the Church of Jesus Christ did not exist and that the reference to the organization related to a theoretical collection of churches that adhere to basic tenets of the Christian faith. Petitioner argues that he should be exempt from self-employment tax based on his belief that "the philosophy of the social security system is diametrically opposed to the faith that [he] participates in" whether or not he belongs to a recognized religious sect described in section 1402(g).

The exemption provided by section 1402(g) is narrowly drawn, however, and applies only to individuals who are members of a "recognized religious sect or division thereof" and who are "[adherents] of established tenets or teachings of such sect or division by reason of which [they are] conscientiously opposed to acceptance of the benefits1996 Tax Ct. Memo LEXIS 140">*148 of any private or public insurance" as outlined in the statute. Petitioner has presented no evidence that he is a member of a recognized religious sect, the tenets or teachings of which are opposed to private or public insurance programs. Petitioner's personal religious beliefs, as sincere as they might be, are not a substitute for the requirements of the statute. Hughes v. Commissioner, 81 T.C. 683">81 T.C. 683 (1983); Palmer v. Commissioner, 52 T.C. 310">52 T.C. 310 (1969); Stradley v. Commissioner, T.C. Memo. 1986-424. It is clear the petitioner does not come within the provisions of section 1402(g).

Petitioner next argues that the denial of the exemption from self-employment tax represents an attempt to regulate his religious beliefs in violation of the First Amendment. Specifically, petitioner argues the following:

Other religious groups have been granted exemption. To deny me that same exemption would effectively establish a class of religious people that enjoy privileges of the federal government unattainable by others. That is the establishment of one religion more favored than others. The First Amendment1996 Tax Ct. Memo LEXIS 140">*149 of the Constitution forbids the government from this kind of practice.

To reflect the foregoing,

Decision will be entered for respondent.