Rogan

The first question to be determined is whether or not the plaintiffs are exempted completely from the Social Security Act and from the payment of Social Security taxes under the provisions of Section 811 (b) (8) of the Act as it stood before the amendments of August 10, 1939, 42 U.S. C.A. § 1011(b) (8), which amendments did not become effective until January 1, 1940, which date was subsequent to the period here involved.

That section was included in the Act as originally adopted August 14, 1935, and until the amendment above referred to read as follows: “The term ‘employment’ means any service, of whatever nature, performed within the United States by an employee for his employer, except— (8) service performed in the employ of a corporation, community chest, fund, or foundation, organized and operated exclusively for religious, charitable, scientific, literary, or educational purposes, or for the prevention of cruelty to children or animals, no part of the net earnings of which inures to the benefit of any private shareholder or individual.”

The government makes the point that interpretations of similar exemption provisions in the Internal Revenue Acts should control here. A…