TN 13 (08-10)

RS 01804.110 Establishing Current Year SEI

A. Definition

The “current year” is the year of filing.

B. Policy

SEI must be developed for the current year when the resultant QC's will establish insured status. However, a QC cannot be counted for a quarter which has not commenced (See RS 00301.240 for a discussion of when a calendar quarter cannot be a QC).

SSA does not use SEI established by this development for computation purposes.

This development is not used to establish QC's if:

  • Application is for LSDP or DIB freeze only;

  • There is doubt that SEI already derived during the year is sufficient to establish the QC's needed;

  • There is indication that future losses could reduce SEI to less than the amount needed for insured status.

C. Procedure — deny/reopen claim

Deny the claim if any of the conditions in RS 01804.110B in this section apply.

Resolve questions of coverage or bona fide reporting prior to denial. (If the claimant subsequently submits tax returns, it constitutes new and material evidence and the claim should be reopened.)

If a LSDP or survivor benefit is payable based on currently insured status, and monthly benefits may be payable in the future based on fully insured status which could be established by the SEI for the current year, make the award based on the currently insured status.

Request the claimant to submit a copy of the tax return and proof of filing. (No control is necessary to ensure receipt.)

D. Procedure — Form SSA-766 (Statement of Self-Employment Income)

Complete Form SSA-766 as follows:

  • Obtain SSA-766 from the claimant and call attention to the penalty notice.

  • Ask the claimant to provide a clear description regarding the nature of the business and other evidence on which the allegation is based.

  • If the claimant is a farmer or other individual eligible to use the optional method of reporting, include the claimant's agreement to report the income using the optional method if actual NE are less than $400 or less than the amount needed for insured status. Modify item 9 of the Form SSA-766 as needed.

  • Explain to the claimant that benefits will be paid based on the information furnished and that benefits will be suspended if a tax return and proof of filing are not submitted.

  • Ask the claimant to request a receipt from the IRS when the tax return is filed and to furnish SSA with a copy of the tax return and proof of filing; i.e., a receipt, cancelled check or some other proof of filing during the first month after the taxable year ends (January if a calendar year is used).

  • If the award is processed by the PC via MADCAP, add paragraph C06 to the award certificate. If processed by the FO's include a dictated paragraph using the language provided in paragraph C06. If this is an MCS clearance claim processed by the FO/PC, include a dictated paragraph using the language provided in BRRR13. See MSOM ORS 002.003F for the language provided in BRRR13.

  • List calendar year cases under code 526 on the DECI screen.

  • Diary fiscal year cases for one month after the end of the fiscal year.

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RS 01804.110 - Establishing Current Year SEI - 08/19/2010
Batch run: 07/03/2014