Basic (02-15)

RM 01003.008 How to Maintain the Form 2032 File

A. Introduction to Form 2032

Public Law 98-21 enacted April 20, 1983, allows Social Security coverage to American citizens and resident aliens working outside the United States for a foreign affiliate of an American employer if the American employer owns at least 10% in the voting stock or profits of the foreign affiliate.

B. Filing Form 2032

  • The employer files Form 2032 (Contract Coverage under Title II of the Social Security Act), with the Social Security field office (FO) in which the principal place of business within the United States is located.

  • The FO forwards Form 2032 to an Internal Revenue Service (IRS) Campus.

  • The IRS examines Form 2032 and investigates to ensure only one employer identification number (EIN) is assigned to the employer. The IRS then sends a copy of Form 2032 under a cover letter to the Office of Central Operations, Office of Earnings and International Operations, Division of Earnings and Business Services (DEBS).

C. Maintaining Form 2032

  1. 1. 

    The DEBS

    • receives Form 2032 from the IRS;

    • controls Form 2032 in the Electronic Control Workload System (ECWS);

    • assigns Form 2032 to an Earnings Operation Expert (EOE).

  2. 2. 

    The EOE

    • receives Form 2032 with a Batch Cover Sheet;

    • places Form 2032 in a brown folder and transcribes the EIN onto the folder tab;

    • files the folders in EIN order in a holding cabinet in the DEBS Control area;

    • holds the folders to ensure the foreign affiliate has been assigned an EIN;

      NOTE: The retention period for holding Form 2032 is one year.

    • returns the Batch Cover Sheet to the DEBS Control Area and places it in the bin labeled “Batch Release Sheet”

  3. 3. 

    DEBS Control Personnel releases Form 2032 from ECWS.

D. Related topic

RM 01001.004 List of Internal Revenue Service (IRS) Campuses and the EIN Prefixes they assign

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RM 01003.008 - How to Maintain the Form 2032 File - 08/28/2017
Batch run: 09/24/2019