SSA assumes the SEI (posted or unposted) reported by the claimant to be correct when adjudicating claims unless:

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  Insured Status is involved; i.e., SEI for one or more years in the period open to correction is needed for insured status; or;

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  Bona fide reporting is in doubt, see RS 01804.070 for a discussion of Bona Fide reporting; or

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  Delinquent or amended returns were filed less than 6 months prior to filing the application, see RS 01804.075 for a discussion of a delinquent or amended tax return filed); or

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  A coverage question is raised, see RS 01804.080 –Coverage Questions; or

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  The claimant filed to change to or from the optional method of reporting SEI and the amount of SEI established under the option would be affected; or

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  SEI and railroad compensation are involved, see RS 01804.030 for a discussion of SEI and Railroad Compensation;

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  Other information casts doubt on the accuracy of the reported SEI, see RS 01804.095 for a discussion of information that casts doubt on the accuracy of the reported SEI-Policy.

CAUTION: Do not undertake development for a year that will be excluded from the computation.

If the adjudicator believes there is reason to question the reported SEI, proceed as follows:

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  Obtain and review at least one Schedule C or F (Form 1065 in partnership cases) and Schedule SE.

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  Correct the Master Earnings File (MEF) if appropriate.

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  Question earlier years open to correction and correct the MEF for such years if development results in:

A finding that the return was not bona fide; or

A determination that the correct NE was less than $400; or

A change of more than 10 percent in the reported NE.

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  If the claimant does not have the required evidence in his or her possession, contact the IRS, see RS 01804.400 for instructions on how to contact the IRS.