TN 11 (09-87)

RM 03846.022 Closing Self-Employment Cases Returned by the Field Offices

A. DO Has Determined That SE Is Covered

  1. If the SE reporting data were received by SSA:

    1. Take the necessary action to credit the earnings to the correct record.

    2. Prepare a closeout letter per RM 03803.071R.

    3. Close the case on the electronic control system and dispose of all material per RM 03803.073.

  2. If a copy of the SE reporting data was not included with the request to the FO for development, rescout to locate the report. If the report is:

    1. Located, process per “A” above.

    2. Not located, apply the appropriate instructions in A.3.-A.6., below.

      NOTE: SE is updated weekly.

  3. If the FO did not obtain a copy of the missing SE report and the file material indicates that IRS sent the SE reporting data to SSA, e.g., file contains a Form SSA-7057 U3 (Request For Tax Return Information), or Form 1040, schedule C or F etc. bearing the IRS stamp:

    1. Prepare an “OCRO” and “File” copy of the Form SSA-7000 U5 per RM 03846.030 to establish the amount of SEI.

    2. Prepare a closeout letter per RM 03803.071R.

    3. Close the case on the electronic control system and dispose of all material per RM 03803.073.

  4. If the FO forwarded a copy of the SE report:

    1. Annotate the remarks section of the copy of the SE report “Copy to replace lost SE—-timely filed—-DCC.”

    2. File the copy of the report in the ED file.

    3. Apply the instructions in A.3.a.-c., above.

  5. If IRS states that the SE reporting data have not been forwarded to SSA because it is being questioned or audited:

    1. Include in the closeout letter a statement to the effect that we have not yet received the SE earnings information from IRS and suggest that the taxpayer write to us again after 6 months have elapsed.

    2. If the taxpayer writes to us after 6 months have elapsed, rescout to determine if the SE reporting data have been received or SEI is posted to the earnings record.

    3. If the SEI is posted or will be posted to the earnings record, apply the instructions in A.3.b.-c., above.

    4. If scouting failed to locate the SE reporting data, write to the FO in order to find out why IRS did not forward the data to us. At the same time, notify the individual that we have not yet received the SE earnings information and we are contacting IRS to find out the reason for the delay.

  6. If the IRS or FO investigation discloses that a report of SEI was not filed by the individual, and our decision is that he/she must file before receiving credit, prepare a closeout letter per RM 03803.071R and include the following:

    1. Inform the individual that the SEI has not yet been credited to the record and that it cannot be credited until he/she files a report of SEI with IRS.

    2. Inform the individual of the length of time in which he/she has to file.

    3. Suggest that the individual contact IRS if he/she has not already done so.

    4. Prepare an extra copy of the letter for the control file of letters that are to be checked at a later date for “TL” postings (see RM 03846.027).

B. DO Has Determined That SE Is Not Covered

  1. If the SE reporting data were received by SSA:

    1. Prepare a Form SSA-7000 U5 per RM 03846.030 to make any necessary corrections to the earnings record.

    2. Prepare a closeout letter per RM 03803.071R.

    3. Close the case on the electronic control system and dispose of all material per RM 03803.073.

  2. If the FO determined that the SEI in whole or in part should be credited to some other person, process per B.1.a.-c. above.

    NOTE: Satisfactory evidence must be present which clearly shows that SEI reported for one person actually belongs to another individual before the SEI can be allocated. It is immaterial whether the individuals filed a joint or separate form.

  3. If the FO did not obtain a copy of the missing report and the file material indi