TN 13 (08-10)

RS 01804.100 Establishing Lag SEI

A. Definitions

The lag period is the year of filing and the preceding year. (Lag SEI may not appear on the earnings record because tax returns are not due or have not been processed by the IRS.)

The definition for lag SEI is the same as it is for wages, see RS 01404.005A for definitions.

B. Policy

Lag SEI cannot be used in the computation unless a tax return reporting it has been filed with IRS.

The alleged but unposted lag SEI is assumed to be correct unless one of the rules in RS 01804.044 applies.

C. Procedure

Take the following steps to establish lag SEI:

1. Unposted SEI

If the alleged unposted SEI appears to be correct, request the claimant to submit a copy of their Schedule SE. (No additional evidence is necessary e.g., other schedules or proof of payment.)

If the unposted SEI is not assumed to be correct, develop per RS 01804.044B. For insured status issues, develop per RS 01804.110 - Establishing Current Year SEI.

2. Tax return

If there is any doubt that the tax return was filed, ask the claimant to submit copies of both Form 1040 and proof of filing, such as a cancelled check, IRS receipt etc.

If evidence is not available, obtain the claimant's statement and request the evidence from the IRS via instructions provided in RS 01804.400.

NOTE: Exclude the earnings from the computation until it is established that a tax return was filed.

3. Payment

FO: If immediate payment is due, make a partial award via MCS (see MSOM MCS 005028) and include paragraph UTI: SEIR04 (see MSOM ORS 002.003) to explain that the earnings were excluded pending verification that a tax return was filed.

If the award is not processed via MCS indicate a dictated paragraph using the language provided in paragraph EO9.


To Link to this section - Use this URL:
http://policy.ssa.gov/poms.nsf/lnx/0301804100
RS 01804.100 - Establishing Lag SEI - 11/14/2017
Batch run: 11/14/2017
Rev:11/14/2017