TN 33 (04-24)

RS 01802.310 When to Develop Partnerships


A partnership is a valid form of business operation, and its use does not automatically raise a question about SEI derived through it.


Development must be undertaken and the results documented when:

  1. a. 

    A question is raised, by or on behalf of a person who worked in the business, as to whether they should receive credit for any part of the earnings reported by another, i.e. husband/wife business operation with all earnings reported to the husband. Note: this issue should be raised before denying a claim for lack of insured status;

  2. b. 

    Someone appears to be using the partnership form to acquire Social Security coverage through the efforts of another;

  3. c. 

    An individual, formerly the sole proprietor of a business, within several years of applying for benefits forms a partnership to operate the business, thereby dividing NESE and reducing their net income;

  4. d. 

    A limited partner appears to be reporting as SEI their distributive share of income from a limited partnership.

The above is not intended to preclude development when in the judgement of the adjudicator there is reason to question whether a business was or was not a partnership, or whether income was properly reported.

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RS 01802.310 - When to Develop Partnerships - 04/23/2024
Batch run: 04/23/2024