Effective Dates: 06/10/2024 - Present Previous | Next

TN 18 (06-24)

HI 01120.055 Beneficiary Provides 2 year Old Tax Data When SSA Used 3 year Old Tax Data to Determine the IRMAA.

A. Policy

B. Requesting a New Initial Determination Based on Two Year Old Tax Data When SSA Used Three Year Old Tax Data to Determine the IRMAA

C. What Evidence is Needed to Support the Change

D. How to Process the Request

E. How to Record Evidence Provided on EVID Screens

A. Policy

When IRS provides 3-year old MAGI because it does not have tax information for the tax year that is two years prior to the premium year, and the 3 year old data was used to determine IRMAA, the beneficiary may provide us with the 2 year old MAGI. A beneficiary who has filed a tax return for the tax year that is two years prior to the premium year or did not need to file income taxes for PY-2 can request a new initial determination.

B. Requesting a New Initial Determination Based on Two Year Old Tax Data When SSA Used Three Year Old Tax Data to Determine the IRMAA

  1. 1. 

    A beneficiary may request a new initial determination when two year old tax data is available and SSA used three year old data provided by IRS. The beneficiary will know which year SSA used from the cost-of-living adjustment or determination notice, and may request a revision of IRMAA at any time during the affected year. Ordinarily, SSA will not make a correction retroactive to a prior year, but there is one exception to this rule. When the beneficiary receives a notice during the last three months of the affected premium year, they may request a correction for the affected premium year until March 31st of the following year. A beneficiary may also make that request later if there is good cause to extend the date (see GN 03101.020). For example, if a beneficiary receives a notice in October 2008 informing them that PY 2008 will be based on 2005 tax data, they can contact SSA in March of 2009 to adjust the 2008 PY and request SSA use their 2006 tax data.

  2. 2. 

    A request for a new initial determination based on a beneficiary providing two year old tax data when SSA is using three year old tax data can only be effective for the premium year for which the original determination was made.

C. What Evidence is Needed to Support the Change

If the current IRMAA determination is based on tax information from three years prior to the current premium year, SSA will accept a signed copy of the beneficiary's filed Federal income tax return for the tax year that is two years prior to the premium year.

NOTE: 

If a beneficiary alleges electronic filing, ask the beneficiary to print and sign a copy of the electronic return.

D. How to Process the Request

If

Then

SSA records show that SSA used tax data from three years prior to the current premium year to determine the beneficiary's IRMAA and the beneficiary has a signed copy of the filed return for two years prior to the premium year.

  • •

    Request and review the beneficiary's signed copy of the 2-year old tax return.

  • •

    Access the IRMAA screens (See MSOM T2PE 008.001 through MSOM T2PE 008.019)

  • •

    On the IRMN screen

    • –

      Enter the Beneficiary's Own SSN.

    • –

      In the “Select the Desired Option” field select “1” Establish

    • –

      Input the premium year that the new initial determination request is for.

    • –

      In the “Select the Desired Function” field select “2” Tax Information

    • –

      Input the PY-2 Tax Year

    • –

      Press Enter

  • •

    The PYTY screen appears when there is data on file for the tax year requested and it is displayed under the Highest Probative Value Data Field. (For an explanation of Highest Probative see MSOM T2PE 008.019.)

    • –

      If you select “1” Use Highest Probative Data, the system will process the determination using the data on file. The data will be propagated to the IRMA screen.

    • –

      If you select “2” New Tax Data, the system will process the determination using the new information provided as long as the value of the data is of higher value than the information on file.

  • •

    Press Enter.

    • –

      On the IRMA screen

  • •

    Input the beneficiary's PY-2 provided tax data.

  • •

    For the “Select Type” field, select “1” Tax Return. NOTE: If selection “1” Use Highest Probative Data on the PYTY was selected, the information will be propagated and cannot be changed

  • •

    Show Proof as “1” Proven

  • •

    Press Enter.

The IRRE Screen will display the current and recalculated IRMAA data. The “New Determination Results” field will provide the determination based on the information entered.

  • •

    The IRMN Screen will display an alert to go to the EVID screen to document proofs submitted for the event reported. Pressing any “PF” key or the “Enter” key from the IRMN screen, will take you to the Shared Processes Menu.

  • •

    Record the evidence provided on the EVID screen. See HI 01120.050E for documenting the EVID screen in Shared Processes (See GN 00301.286 through GN 00301.300 and MSOM EVID 001.003).

  • •

    Advise the beneficiary that SSA will verify the return information with IRS.

SSA records show that SSA used tax data from three years prior to the current premium year to determine the beneficiary's IRMAA and the beneficiary alleges possession of a signed copy of the filed return for two years prior to the premium year but does not have the evidence available.

  • •

    Input the information provided by the beneficiary on the IRMAA screens (See MSOM T2PE 008.001 through MSOM T2PE 008.013).and show “PENDING” on the IRMA screen. See HI 01120.001G

  • •

    Advise the beneficiary to submit a signed copy of the 2-year old tax return within 30 days or the request for the new initial determination will be dismissed.

  • •

    Advise the beneficiary that if the required documentation is obtained after the dismissal, a new determination can again be requested.

SSA records show that SSA used tax data from three years prior to the current premium year to determine the beneficiary's IRMAA and the beneficiary states that they did not file tax returns or did not need to file tax returns for the tax year two years prior.

  • •

    Ask the beneficiary the reason for not filing. Based on the beneficiary's statement, determine if the beneficiary did not file, did not need to file, or needs to file their tax return because of a reduction in income due to a life-changing event. If a life-changing event occurred, see HI 01120.010 through HI 01120.040 to process a life changing event.

  • •

    If an LCE does not apply, accept the beneficiary's statement as proof. On the IRPP screen read the attestation statement and inform the beneficiary that they are attesting under penalty of perjury that they did not file a tax return or did not need to file a tax return for the tax year two years prior.

    NOTE: 

    A beneficiary may request a transcript confirming that a tax return was not filed for a specific tax year by submitting IRS Form 4506-T and completing box 7.

  • •

    On the IRMN screen

    • –

      Enter the Beneficiary's Own SSN.

    • –

      In the “Select the Desired Option” field select “1” Establish

    • –

      Input the premium year that the new initial determination request is for.

    • –

      In the “Select the Desired Function” field select “2” Tax Information

    • –

      Input the PY-2 Tax Year

    • –

      Press Enter

  • •

    The PYTY screen appears when there is data on file for the tax year requested and it is displayed under the Highest Probative Value Data Field. (For an explanation of Highest Probative see MSOM T2PE 008.019.)

    • –

      If you select “1” Use Highest Probative Data, the system will process the determination using that data on file. The data will be propagated to the IRMA screen.

    • –

      If you select “2” New Tax Data, the system will process the determination using the new information provided as long as the value of the data is of higher value than the information on file.

  • •

    Press Enter.

    • –

      On the IRMA screen

  • •

    Input the PY-2 AGI and TEI information provided by the beneficiary

    NOTE: 

    If the beneficiary did not file taxes it does not mean they did not have any AGI or TEI. Request the information from the beneficiary to complete the required fields. The beneficiary can estimate the information

  • •

    For the “Select Type” field, select “5” No Tax Filing Required.

  • •

    Show Proof as “1” Proven

  • •

    Press Enter.

  • •

    Record any evidence provided on the EVID screen. (See GN 00301.286 through GN 00301.300 and MSOM EVID 001.003.)

E. How to Record Evidence Provided on EVID Screens

If

Then

The beneficiary provides a signed copy of the filed PY-2 tax return.

NOTE: 

If a beneficiary alleges electronic filing, ask the beneficiary to print and sign a copy of the electronic return.

  • •

    Access the EVID screen in Shared Processes (See GN 00301.286 through GN 00301.300 and MSOM EVID 001.003).

  • •

    Select “WAGES” as the document submitted as proof.

  • •

    For “Document Event Date” show 12/31/ccyy (for the year of the tax return).

  • •

    On the “Document Type” line write: filed tax return ccyy.
To Link to this section - Use this URL:
http://policy.ssa.gov/poms.nsf/lnx/0601120055
HI 01120.055 - Beneficiary Provides 2 year Old Tax Data When SSA Used 3 year Old Tax Data to Determine the IRMAA. - 06/10/2024
Batch run: 06/10/2024
Rev:06/10/2024