Develop SEI reported on a delinquent or amended return if it:
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Changes the PIA by $1.00 or more, or
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Reduces materially the earnings for annual earnings test purposes, or
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If development is required:
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Request copies of the original and amended returns and an explanation for the correction.
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Determine reason for late filing if a delinquent tax return is involved.
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Evaluate the facts and determine if facts are sufficient.
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If yes, accept reported SEI.
If no, undertake additional development.
(Most cases will involve a question of whether a bona fide business exists, which
should be developed per
RS 01804.070.)
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Document the claims file.