TN 10 (10-94)
Inquiries concerning an individual's tax status should be referred to IRS. This includes
employer or employee questions concerning the tax status of a payment or if the coverage
issue affects tax liability.
When an employer or employee questions the wage or coverage status of a payment, develop
according to the issue.
If possible, obtain an SSA-7011-F4 or other wage statement from the employer.
Refer general inquiries to IRS that do not involve a problem or question with the
amount of SEI shown on the ER. (The questions are usually concerned with the amount
of taxes owed, not with the amount of SEI.)
Whether the amounts are subject to the Social Security tax.
Whether all or part of the income is Net Earnings (NE) from SE;
Whether the individual is engaged in a trade or business;
Whether earnings are rentals from real estate;
The effects of a proposed arrangement or current arrangement for a taxable year which
has not ended yet, etc.
In the following situations, obtain evidence to make a formal determination:
Information indicates (PEBES, SEQY, DEQY, etc.) that there is an error with the earnings
credited to the individual's ER; or
In the development of a claim or preclaim, it cannot be readily determined whether
the individual is engaged in a covered trade or business.
If an individual who worked for the U.S. Government or an instrumentality of the U.S.
after 1950 raises a question of coverage, follow RS 01901.340.
NOTE: Prior to 11/10/88 a determination as to whether a NH worked in covered employment
was made only by the head of the employing agency. Beginning 11/10/88, SSA and/or
IRS are responsible for the determination of whether the federal employment is covered.
For coverage questions concerning State and local employers, see RS 01505.042 and RS 01505.044.
Coverage and Exceptions
Employer - Employee Relationships
Self employment development, RS 01804.000ff.
Wages, RS 01401.001ff
Wage Exceptions, RS 01402.001ff