SSA - POMS: SL 40001.485 - Legally Dissolved Entities

A. Overview

When a political subdivision legally dissolves, the State must submit to the Social Security Administration (SSA) a notice of legal dissolution to delete the dissolved entity from the State’s Agreement.

The State should take prompt action to notify SSA of the dissolution when it occurs. If a State failed to notify SSA of a past dissolution, it should do so as soon as it discovers that it failed to notify SSA. The State should send the Section 218 specialist a notice of legal dissolution and provide legal documentation with the notice of legal dissolution.

NOTE:

SL 40001.421D.5 describes alterations to dissolution notice procedures that apply if a State has opted into the electronic signature process and has not requested paper processing.

The Section 218 specialist will work with the Program, Fiscal, and Disclosure Law (PFDL) to evaluate the evidence submitted in order to confirm that the entity legally dissolved and whether the dissolution affects the scope of coverage under the Agreement.

NOTE:

The Section 218 specialist may ask the State to provide additional supporting evidence or documentation if the documentation already provided was insufficient.

If PFDL does not provide legal clearance for the dissolution, the Section 218 specialist will notify the State that the evidence submitted does not confirm legal dissolution.

If PFDL provides legal clearance for the dissolution, the Section 218 specialist will:

1.

Inform the State that the dissolution has been approved and processed by completing and mailing (or emailing if used electronic signature) the template SSA reply, which is signed by the delegated official on behalf of the Commissioner of Social Security (see SL 40001.490, Exhibit 21), to the State,
2.

Append the notice of dissolution and SSA's reply to any Modification or Identification Modification relating to the dissolved entity; and
3.

Scan and save a copy of the Dissolution packet for Agency records, and
4.

E-fax a copy of the notice of dissolution and SSA's reply affirming that the entity was legally dissolved to the IRS at 855-243-4014.

B. Evidence of legal dissolution

The State must submit legally sufficient evidence to establish the fact of dissolution. The evidence must establish that the entity is not merely inactive or dormant, but that it no longer exists.

1. Primary evidence of dissolution

a.
If the dissolution occurred as the result of a legal authority, evidence of the dissolution may be in the form of a copy of the legal authority under which the dissolution occurred. This may include:
- •
  
  A copy of a city ordinance;
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  A copy of the order of an authorized official which effectuated the dissolution; or
- •
  
  A copy of the results of an election that authorized the dissolution.
b.
Where the dissolution resulted from the authorization of a legislative body (for example, State Legislature, County Council, City Council, etc.), acceptable evidence would be proof that the legislative authorization had been carried out with either:
- •
  
  A copy of the legislation or
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  A reference (e.g., law review, Bar journal, legal periodical, legislative history journal, legal or legislative website, etc.) to the legislative authorization.
c.

If the legislative authorization by itself did not dissolve the entity, a copy of the administrative or other order is required. A statement of the fact that the dissolution was executed by the official of the State or political subdivision with whom orders of dissolution are filed is acceptable as evidence of dissolution.

2. Secondary evidence of dissolution

If primary evidentiary records and documentation have been lost or destroyed, other evidence is required to support a determination that the entity dissolved.

Examples of other evidence include:

•

Meeting minutes of the entity’s governing board (e.g., school board, fire district board, precinct board, water district board, public service commission, etc.) authorizing dissolution, in tandem with a published article or other evidence confirming dissolution and
•

A combination of documents of significant probity which enable the current official of the State or political subdivision with whom orders of dissolution are filed to make a determination as to whether or not the entity is legally dissolved.

Examples of acceptable documents submitted in combination for the current State or local government official’s dissolution determination are:

•

A signed statement or certified letter from an authorized State or local government official or school district superintendent declaring that the entity no longer exists;
•

Meeting minutes of the entity’s governing board authorizing the entity’s dissolution;
•

An SSA earnings report query (ERQY) showing that the entity stopped reporting W-2s in the year of the alleged dissolution;
•

Information about the entity’s dissolution obtained from a State or local government’s website; and
•

A signed statement from the Public Service Commission that a district is no longer on its database.

C. Erroneous dissolution of a political entity

If the State discovers that a dissolution action was erroneous because an entity had not legally dissolved, the State should notify SSA as soon as possible and provide supporting evidence (see SL 40001.490, Exhibit 22). The Section 218 specialist will work with PFDL to evaluate the evidence and determine whether the dissolution was erroneous.

NOTE:

The Section 218 specialist may ask the State to provide additional supporting evidence or documentation if the documentation already provided was insufficient.

If SSA cannot confirm that the dissolution was erroneous, the Section 218 specialist will notify the State that the evidence submitted does not confirm erroneous dissolution.

If SSA confirms that the dissolution was erroneous, the Section 218 specialist will:

1.

Inform the State that the notice has been approved and processed by completing and mailing (or emailing if used electronic signature) the template SSA reply, which is signed by the delegated official on behalf of the Commissioner of Social Security (see SL 40001.490, Exhibit 22) to the State;
2.

Append the notice to the prior notice of dissolution in SSA records;
3.

Scan and save a copy of the Dissolution packet for Agency records, and
4.

E-fax the signed notice to the IRS at 855-243-4014 and email it to the State.

Social Security

Program Operations Manual System (POMS)

SL 40001.485 Legally Dissolved Entities

A. Overview

B. Evidence of legal dissolution

1. Primary evidence of dissolution

2. Secondary evidence of dissolution

C. Erroneous dissolution of a political entity