Whenever it is necessary to prepare a Form SSA-7000 U5 or to revise a form prepared by the field office, complete or revise items on the Form SSA-7000 U5 per the following instructions:
Enter in the “SSA Field Office” box the FO address servicing the individual.
Place a checkmark in the appropriate box or boxes on the upper right corner of the Form SSA-7000 U5 as follows:
Check only one of the three top blocks on each form. In addition, when necessary, check one or both of the two lower blocks. Check only the block(s) applicable to the individual involved where separate Forms SSA-7000 U5 are prepared in the same case.
Check the box opposite “nonclaim” if a claim has not been filed.
Check the box opposite “FICA Wages Involved” if wages were reported as SEI, or vice versa.
Check the box adjacent to “No 1040 filed” if the evidence shows that the individual is delinquent and such report has not been filed. Insert the delinquent year(s).
Check the box for “Related SSA-7000” when a related Form SSA-7000 U5 is being or has been prepared, or a prior Form SSA-7000 U5 is being superseded.
Complete items 1 through 5 on the Form SSA-7000 U5 as indicated. If either the home address (item 4) or the business address (item 5) is known, it is not necessary to return the case to the FO solely to obtain the other address.
Complete items 6, 7 and 8 on the Form SSA-7000 U5 as follows:
If any of the information is reflected in the file, enter such information in the appropriate spaces.
If it is possible to close the case without investigation in the district office, leave items 6 and 7 blank. Explain in the space below item 11 that this information was not obtained because a field investigation was not required.
Complete item 8 for each year involved in the determination. Enter the year, the approximate date the tax return was filed (the word “timely” should be entered if the approximate date is unknown and it is certain the return was filed by the normal due date), and the IRS account number, if available.
Complete item 9 of Form SSA-7000 U5 as follows:
Enter in item 9(a) the beginning and ending month and year of the taxable year involved.
NOTE: If a change in the taxable year is involved, and there is an amount of SEI on our records, two separate lines must be used. One line must reflect the correct taxable year under which the correct amount of SEI is being established. The other line must reflect the incorrect taxable year under which the SEI was processed to our records.
Enter in item 9(b) the amount of SEI determined to be correct.
Enter in item 9(c) the amount on SSA records. If there is no amount on the record, enter “none.” If an amount of SEI is entered in item 9(c) which has not yet reached the earnings record, an explanation should be entered manually in the space below item 11 of the “OCRO” and “file” copies of the form.
“1972 SEI reported without an SSN (MB4908-72-121) and reinstated. Not yet posted to earnings record.”
Enter in column headed “IRD” the IRD number determined as follows:
If the self-employment reports for all years involved were filed in the same IRD, enter the IRD number.
If all of the self-employment reports were not filed in the same IRD, or there is no indication as to where they were filed, enter the IRD number of the servicing area to which the taxpayer resides.
NOTE: If the taxpayer's home address is missing, enter the IRD number of the taxpayer's business address.
Do not make any entry in the “increase” or “decrease” columns to the right of the column headed “IRD.” This space is used for coding purposes on the “OCRO” copy by DEEA.
Complete item 10 of Form SSA-7000 U5 as follows:
The two boxes relating to Form 843 are normally completed by the field office when a potential claim for a refund from IRS is involved. If, while processing an SSA-7000 U5, OCRO ascertains that a reduction in SEI for a year which will be barred to correction after April 15 is involved and the SSA-7000 U5 does not bear the DO notation “Filing of Form 843 Invited,” OCRO will request the DO to inform the individual of his/her right to file for refund and furnish him/her a Form 843 completed in accordance with RS 01804.380C. In these cases, OCRO will place the notation “Filing of Form 843 Invited” on the copies of the SSA-7000 U5 in OCRO.
The box opposite “Form 2190 Attached” is checked by the field office when a claimant elects via Form 2190 to change the method of computing net earnings from SE for reporting purposes.
Check the appropriate box in item 11 of Form SSA-7000 U5 relating to the SSA determination as follows:
If the space provided on the Form SSA-7000 U5 is not adequate, or if the determination has already been prepared on another form, check the box opposite “SSA determination is attached.”
If the space provided on the Form SSA-7000 U5 is adequate and the determination was not previously prepared on another form, check the box adjacent to “SSA determination is as follows:”
Make certain that the determination, regardless of the type of form used, provides sufficient information to permit IRS to make the necessary adjustment without further investigation. If:
Improper expenses, depreciation, etc., are shown on the business return, it is sufficient to point out why the items are incorrect.
The taxpayer failed to deduct business expenses, depreciation, etc., it will be necessary to give IRS sufficient information to permit them to complete the applicable items on the business return.
In item 12 check the appropriate box to indicate the type of evidence the determination is based on.
Sign and date the Form SSA-7000 U5 in the appropriate spaces. Each form initially prepared in OCRO must be signed by the person who prepared it, and by the technician designated by his/her supervisor. Notify IRS in all cases except the following:
The net adjustment for all years is less than $300, unless a refund has been requested, or a Form 843, Claim-Internal Revenue Service, has been invited.
Transfers of earnings between persons who filed joint tax returns.
In all cases where IRS is being notified, note the “OCRO copy” and the “file copy,” “IRS notified,” in the space below item 11 of the Form SSA-7000 U5.
If it is necessary to notify IRS of our action, distribute the copies of Form SSA-7000 U5 as follows:
Forward OCRO and IRS copies to DEEA.
Note the file copy for permanent retention and place in ED folder.
If it is not necessary to notify IRS of our action, distribute the copies of the Form SSA-7000 U5 as follows:
Forward the OCRO copy to DEEA for processing.
NOTE: The determination on this type of case should be as brief as possible and yet contain all the pertinent facts. It should include a statement that IRS was not notified of our action and the reason.
Note the third carbon copy for permanent filing and retain it with the correspondence file.
If the Form SSA-7000 U5 was prepared in the field office and corrected or revised in OCRO, forward the fourth carbon copy to the field office.
NOTE: An OF-41 is not required except where related Forms SSA-7000 U5 and SSA-7010 U5 were prepared on the same case. In this instance, the coverage examiners will attach a preprinted Form OF-41 with a checkmark in the proper box.
Discard excess copies of the form.
If the Form SSA-7000 U5 is checked “no form 1040 filed,” release all copies of the Form SSA-7000 U5 in accordance with “13” above.
Staple to the OCRO processing copy an OF-41 noted “No Form 1040, Individual Income Tax Return, filed-process as NCN.”