TN 13 (08-10)

RS 01804.044 SEI Development - General

A. Policy

SSA assumes the SEI (posted or unposted) reported by the claimant to be correct when adjudicating claims unless:

  • Insured Status is involved; i.e., SEI for one or more years in the period open to correction is needed for insured status; or;

  • Bona fide reporting is in doubt, see RS 01804.070 for a discussion of Bona Fide reporting; or

  • Delinquent or amended returns were filed less than 6 months prior to filing the application, see RS 01804.075 for a discussion of a delinquent or amended tax return filed); or

  • A coverage question is raised, see RS 01804.080 –Coverage Questions; or

  • The claimant filed to change to or from the optional method of reporting SEI and the amount of SEI established under the option would be affected; or

  • SEI and railroad compensation are involved, see RS 01804.030 for a discussion of SEI and Railroad Compensation;

  • Other information casts doubt on the accuracy of the reported SEI, see RS 01804.095 for a discussion of information that casts doubt on the accuracy of the reported SEI-Policy.

CAUTION: Do not undertake development for a year that will be excluded from the computation.

B. Procedure

If the adjudicator believes there is reason to question the reported SEI, proceed as follows:

  • Obtain and review at least one Schedule C or F (Form 1065 in partnership cases) and Schedule SE.

  • Correct the Master Earnings File (MEF) if appropriate.

  • Question earlier years open to correction and correct the MEF for such years if development results in:

A finding that the return was not bona fide; or

A determination that the correct NE was less than $400; or

A change of more than 10 percent in the reported NE.

  • If the claimant does not have the required evidence in his or her possession, contact the IRS, see RS 01804.400 for instructions on how to contact the IRS.

To Link to this section - Use this URL:
RS 01804.044 - SEI Development - General - 08/19/2010
Batch run: 07/03/2014