TN 11 (09-87)

RM 03844.063 Preparing and Releasing Forms SSA-7010 U5

A. Preparing Form SSA-7010 U5 Based On Evidence

  1. Where acceptable evidence is received and no dummy earnings item exists for the employer and period in question, prepare Form(s) SSA-7010 U5 per RM 02207 to establish the amount(s) shown on the evidence.

  2. If the effect of the evidence is merely to transfer reported earnings to a different period and/or a different employee, prepare an internal adjustment per RM 02260 or RM 02261. Prepare Form(s) SSA-7010 U5 only if earnings being transferred have been established or previously adjusted by an SSA-7010 U5.

  3. If the file material does not show how the earnings should be allocated for quarterly periods and less than maximum earnings are involved, complete the SSA-7010 U5 per RM 03803.051D.

  4. Where there is a dispute as to which of two or more alleged employers was the actual employer, proceed as follows:

    1. If a Form SSA-7011, Statement of Employer, has been obtained from at least one but not all of the employers:

      1. Enter the name and EIN of the employer who signed a SSA-7011 in block 3 of the Form SSA-7010 U5.

        NOTE: Where an establishment number (if any) can be determined from the case material, enter the information in the space provided in block 3. If there is a location rather than a number, show the location.

      2. Enter in block 13 of the SSA-7010 U5 the employer's name and EIN followed by “possible ER.”

    2. If a Form SSA-7011 has been received from each employer:

      1. Enter the name and EIN of the highest ranking employer in block 3 of the SSA-7010 U5.


        If one of the employers is a general contractor and the other is a subcontractor, enter only the name and EIN of the general contractor in block 3.

      2. Enter in item 13 of the SSA-7010 U5 the employer's name and EIN followed by “possible ER.”

    3. If none of the employers have signed an SSA-7011 and other acceptable evidence has been retained, follow instructions in 4.b.1) - 4.b.2) above.

  5. If lag earnings are involved , apply the following applicable instructions:

    1. Establish earnings for lag periods only when primary evidence is received for both pre-lag and lag periods.

    2. If evidence is received for a lag period only, do not prepare an SSA-7010 U5 to establish wages. Include a lag paragraph which invites the NH to check his/her record after the period is out of lag.

    3. .When pre-lag and lag periods are being established, prepare separate sets of Forms SSA-7010 U5. In addition to the determination entered in item 13 of the lag Form SSA-7010 U5, show the reason for establishing lag wages as: “Form 7010 for the year shown is being prepared as part of an ED investigation involving previous years.”

    4. The amount established for the lag period will be shown in an itemization when it appears in the employee's allegation. It will also be shown in the itemization, even though it was not included in the allegation, where earnings are being itemized from the same employer for periods prior to the lag period.

  6. Where the regular EIN is not known, have EPB obtain a temporary identification number. Check the “NO EIN” box and enter “X” for each period in column 11(c) of all copies of the form.

  7. If you prepare a correction to an adjustment form prepared by the field office, send a photocopy of the corrected SSA-7010 U5 to the field office.

  8. .In instances where the Form SSA-7010 U5 should not have been prepared, i.e., earnings already posted, transferred, etc., destroy all copies of the form except the OCRO copy. Mark the OCRO copy, “DO NOT PROCESS. OTHER ACTION TAKEN TO CORRECT EARNINGS RECORD” and file in the earnings discrepancy folder.

  9. Where wages are being established for employment with a non-profit religious order, whose members are required to take a vow of poverty, include a statement that a Form SS-16, Certificate of Election of Coverage Under the Federal Insurance Contributions Act (for use by religious orders whose members are required to take a vow of poverty) was filed and show the effective date of coverage. Use the form number only.

    NOTE: Although the Social Security Amendments of 1983 provided that, effective January 1, 1984, social security coverage for services performed by employees of non-profit organizations are compulsory, the amendments did not include religious orders whose members are required to take a vow of poverty.

  10. Where scouting shows an “RTC” condition (for earnings prior to 1978), add to the information in block 13, “SSA records show report for (period) returned to IRS (date).”

  11. Where migrant farm worker wages are involved, enter “Migrant Farm Worker Case,” in block 13.

B. Preparing Form SSA-7010 U5 Involving An IRS Disagreement

  1. Receive SSA-7010 U5's under cover of a route slip annotated in the “Remarks” portion, “IRS disagreement” for handling per RM 03800ff:

    1. Obtain the previous correspondence folder, associate it with the Form SSA-7010 U5 and review the previous action.

    2. Obtain any scouting necessary to determine if the original adjustment was correct and to properly evaluate the information contained in IRS's reply.

  2. If the position taken originally is changed to agree with IRS's determination:

    1. Reopen the ED in accordance with current instructions.

    2. Prepare a superseding Form SSA-7010 U5 to adjust the record.

    3. Prepare a letter to the individual per RM 03803.071. Notify him/her of the current action if it changes the original reply.

  3. If the position taken originally is not changed to agree with IRS's determination (disagreement unresolved), apply the instructions to determine the conditions under which disagreement cases are to be sent to OISP .

  4. If further development is necessary to resolve the disagreement:

    1. Reopen the ED in accordance with current instructions.

    2. Complete a Form SSA-5533 U4 per RM 03803.055B and forward it to the FO.

  5. When it has been determined that the information on the processed Form SSA-7010 U5 requires correction, prepare a superseding Form SSA-7010-U5.

C. Releasing Forms SSA-7010 U5

  1. Assemble SSA-7010 U5's and SSA-7010a's.

  2. Review SSA-7010 U5's and SSA-7010a's.

  3. After review, remove the carbon paper, file the #5 file copy and the evidence in the ED folder stamped for 4 year filing. Release all other copies to EPB for processing.

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RM 03844.063 - Preparing and Releasing Forms SSA-7010 U5 - 03/20/2012
Batch run: 03/20/2012