If the adjudicator believes there is reason to question the reported SEI, proceed
as follows:
-
•
Obtain and review at least one Schedule C or F (Form 1065 in partnership cases) and
Schedule SE.
-
•
Correct the Master Earnings File (MEF) if appropriate.
-
•
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.
-
•
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.