TN 46 (10-11)
GN 02602.020 Unpaid Maritime Tax Deductions
20 CFR §404.402 and §404.457
Social Security extended coverage to certain maritime employees in March 1943. The law required that Social Security withhold from a person's Social Security benefits unpaid taxes for coverage, instead of collecting it directly from the employee.
Do not pay title II benefits to a beneficiary or auxiliary until we finish collecting the unpaid maritime taxes. Deduct the amount for the unpaid maritime tax before reducing the title II benefit. (For more information on events subject to deduction before reduction, see GN 02603.040.