Basic (05-21)
RM 03846.001 Self-Employment Income-General
The 1950 Amendments extended social security coverage to self-employed individuals
beginning with tax year 1951. At that time, [WB1] forms (Schedules SE) were devised
to enable the Internal Revenue Service to provide the Social Security Administration
with information necessary for posting to the earnings records
The Schedules SE were filed with IRS as a part of the income tax reports. After processing
the income tax reports, IRS detached and forwarded the Schedules SE to SSA. The information
shown on the Schedules SE was punched into cards, and the cards were used as input
to the balancing and posting operations. Since any questions arising regarding the
SE posting could require reference to the original schedules, each schedule was microfilmed
for permanent documentation. Reference to specific schedules is achieved through the
use of the master block and unit number (as assigned the Division of Earnings and
Business Services) reflected on the earnings records. Although many system changes
have been implemented over the years, the Schedules SE have remained the basis for
processing self-employment reports.
Now, however, DEBS has devised and implemented a system whereby IRS extracts self-employment
reporting data from the related income tax documents and forwards the data to DEBS
[WB2] on magnetic tape. Because tape records are received without documentation (Schedules
SE), it is necessary for DEBS to prepare a reference list microfilm which will take
the place of the Schedules SE for reference purposes. This is accomplished by converting
data reflected on the tape to microfilm during the processing of the records. This
system of reporting was first applied to SE reports for the tax year 1968.
Virtually all self-employment reporting data (including adjustments) are now submitted
by IRS.