A beneficiary may allege that the TEI IRS provided to us to determine whether MAGI
is incorrect. We can accept the beneficiary's signed copy of the tax return or a signed
copy of the electronic return if the difference in TEI is an obvious transcription
error. If there is no obvious error, the beneficiary must provide proof of the error
from IRS. For an explanation of the evidence needed to support a change of IRS information
see HI 01120.050C.
If a beneficiary alleges a transcription error, we can correct the TEI information
if the difference between the IRS data and the beneficiary's copy of the tax return:
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the taxpayer is not protesting the tax amount with IRS; and
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the taxpayer is not under investigation for that tax year.
Take the following steps if the only disagreement in MAGI is the TEI:
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1.
Ask the beneficiary if there is an appeal of the tax amount pending for tax year.
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If yes, explain to the beneficiary that we will need to see a letter from IRS correcting
the information before we can change our records. STOP
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If no, continue to step 2.
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2.
Ask the beneficiary if there is currently an audit or investigation of the taxes pending
for the year in question.
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If yes, explain to the beneficiary that we will need to see a letter from IRS correcting
the information before we can change our records. STOP
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If no, continue to step 3.
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3.
Request that the beneficiary provide a signed copy of the filed tax return for the
appropriate tax year.
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4.
Use the following chart to review the difference between the beneficiary's alleged
TEI and the tax information that we have:
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If
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Then
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The difference is an obvious transcription error by IRS, such as:
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900000 instead of 900 on line 2a, or
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124777777 instead of 1247 on line 2a, or
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the tax return shows $32,800 on line 3a, no amount in line 2a, and IRS reported $32,800
in tax-exempt interest income to us.
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Process a “tax correction” by accessing and completing the IRMAA screens:
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On the IRMN screen:
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1.
Enter the Beneficiary's Own SSN.
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2.
In the “Select the Desired Option” field select “1” Establish
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3.
Input the premium year that the new initial determination request is for.
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4.
In the “Select the Desired Function” field select “2” Tax Information
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5.
Input the same tax year that is being used to determine the IRMAA (Usually PY-2 but
could be PY-3).
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6.
Press Enter
The PYTY screen appears when there is data on file for the tax year requested. The
PYTY screen displays the data under the Highest Probative Value Data Field. (For an
explanation of Highest Probative, see MSOM T2PE 008.019.)
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On the PYTY screen:
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1.
Select “2” New Tax Data. The system will process the determination using the corrected
data.
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On the IRMA screen:
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1.
Input the beneficiary's adjusted gross income with the same information on record
and input the correct TEI information.
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2.
For the “Select Type” field, select “4” IRS Tax Correction Data.
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3.
Show Proof as “1” Proven.
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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.
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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.
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Access the EVID screen in Shared Processes. (For policy on Evidentiary Standards see
GN 00301.286 through GN 00301.300. For descriptions of the EVID screens see MSOM EVID 001.003.)
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Select “WAGES” as the document submitted as proof.
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For “Document Event Date” show 12/31/ccyy (for the year of the tax return).
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For “Document Type” enter: bene signed copy-IRS transcription error
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The difference is not obvious, for example: the IRS data we have shows TEI of $9348
and the beneficiary's copy of the tax return shows $7500.
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Explain to the beneficiary that we will need a letter from IRS correcting the information
before we can change our records.
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