In 1984, John Smith reported SEI of $14,700. It was later determined that Mr. Smith
was an employee and was paid $18,500. (He had reported $18,500 as gross and deducted
expenses of $3,800.)
Redesignate the $14,700 as wages and prepare an SSA-7010-U5 to credit the additional
$3,800 in wages. Do not send a copy to IRS.