TN 3 (02-09)
A. Policy
B. What Evidence is Needed to Support the Change
C. How to Process the Request
D. How to Record Evidence Provided on EVID Screens
At the beneficiary's request, SSA can use an amended tax return (with a receipt letter from IRS or a transcript from IRS) over the PY-2 or PY-3 (See HI 01101.001A) tax data that SSA is using for IRMAA, even if it disadvantages the beneficiary.
SSA will accept an amended Federal income tax return as a correction to MAGI or as evidence of MAGI in conjunction with a life changing event. However, the amended return must be accompanied by a receipt letter from IRS or a transcript or copy from IRS.
A request for SSA to use an amended tax return to set IRMAA must occur within 3 calendar years following the close of the tax year the amended return was filed for. For example, a 2005 amended tax return must be provided by April 15, 2009. SSA will accept a late request if there is good cause for late filing of the request. (See GN 03101.020.) If the data received electronically from IRS does not indicate that a beneficiary must pay an IRMAA, SSA cannot impose an IRMAA using a beneficiary’s amended tax return.
The beneficiary must present:
A retained copy of the amended return and a receipt letter from IRS,
A transcript from IRS, or
A copy of the amended return from IRS.
If
Then
The beneficiary presents both the retained copy of the Amended return and a receipt letter from IRS in conjunction with an LCE.
Inquire if the change will affect multiple premium years.
NOTE:
If the same tax year is going to be used for multiple premium years, a separate input is necessary.
Access the IRMAA screens (See MSOM T2PE 008.001 through MSOM T2PE 008.019)
On the IRMN screen
Enter the Beneficiary's Own SSN.
In the “Select the Desired Option” field select “1” Establish
Input the premium year that the new initial determination request is for.
In the “Select the Desired Function” field select “1” Life Changing Event
Input the Tax Year the beneficiary request we use to determine the IRMAA.
Press Enter
The PYTY screen appears when there is data on file for the tax year requested and it is displayed under the Highest Probative Value Data Field. (For an explanation of Highest Probative see MSOM T2PE 008.019.)
Select “2” New Tax Data. The system will process the determination using the amended tax return information provided by the beneficiary.
Press Enter.
On the IRLC screen
In the “Select Life Changing Event” Field select the appropriate LCE.
In the “Date of Life Changing Event” field enter the date of the LCE (Month and Year)
Show Proof as “1” Proven
On the IRMA screen
Input the beneficiary's adjusted gross income and tax exempt interest for the amended tax year
For the “Select Source” field, select “2” Amended Tax Return.
The IRRE Screen will display the current and recalculated IRMAA data. The “New Determination Results” field will provide the determination based on the information entered.
The IRMN Screen will display an alert to go to the EVID screen to document proofs submitted for the event reported. Pressing any “PF” key or the “Enter” key from the IRMN screen, will take you to the Shared Processes Menu.
Document the proofs received on the EVID screen in Shared Processes (See GN 00301.286 through GN 00301.300 and MSOM EVID 001.003). See HI 01120.045D.
The beneficiary alleges he amended his tax return for the tax year being used to determine the IRMAA and presents both the amended return and a receipt letter from IRS
In the “Select the Desired Function” field select “2” Tax Information
Input the Tax Year the beneficiary has amended return for
Select “2” New Tax Data. The system will process the determination using the amended tax information provided by the beneficiary.
For the “Select Type” field, select “2” Amended Tax Return.
Document the proofs received on the EVID screen in Shared Processes (See GN 00301.286 through GN 00301.300 and MSOM EVID 001.003) See HI 01120.045D
The beneficiary presents only the amended return or proof of receipt is presented.
Access the IRMAA screens (See MSOM T2PE 008.001 through MSOM T2PE 008.013) and enter the information provided by the beneficiary. Show proof as “PENDING” on the IRMA screen. See HI 01120.001G
Document the proofs received on the EVID screen in Shared Processes (See GN 00301.286 through GN 00301.300 and MSOM EVID 001.003) See HI 01120.045D.
Advise the beneficiary to contact IRS at 1-800-829-1040 to inquire how to obtain a receipt or a transcript of the amended return, if needed.
Beneficiary has neither amended return nor proof of receipt.
Advise the beneficiary to contact IRS at 1-800-829-1040 to inquire how to obtain a receipt or a transcript of the amended return, if needed
Beneficiary asks SSA to get evidence.
Explain that IRS is prohibited from providing the information directly to SSA. Provide the toll-free IRS number, 1-800-829-1040.
The beneficiary provides a copy of an amended tax return and a receipt letter from IRS.
Access the EVID screen in Shared Processes (See GN 00301.286 through GN 00301.300 and MSOM EVID 001.003).
Select “WAGES” as the document submitted as proof.
For “Document Event Date” show 12/31/ccyy (for the year of the amended return)
For “Issuance/Recordation Date” show “Y.”
For the “Date Issued” show the date of the IRS Letter.
For “Document Type” enter: amended return-IRS letter.
The beneficiary provides a copy of an amended tax return from IRS or a transcript from IRS.
For the “Date Issued” show the date of the IRS Transcript or amended tax return.
For the “Document Type” enter: amended return-IRS transcript or copy.