Part 19 - State and Local Coverage Handbook
Chapter 400 – Agreements and Modifications
Subchapter 01 – Agreements and Modifications
State Social Security Administrators
Regional Offices -- RSI Team Leaders
Parallel Social Security Field Offices -- District Managers
Regional General Counsel Staff
This transmittal updates SL 40001.420, Modifications to the Original Agreement, with new policy and procedure when a state
or local government submits a Social Security or Medicare-only modification to SSA
Summary of Changes
Modifications to the Original Agreement
We made non-substantive editorial revisions to reflect current terminology, to clarify
our rules and to comply with the Agency initiative to write in plain language.
Subsection E. We revised the instructions to read, “Send a copy of Regional Chief Council Opinions
substantiating approval to OEPIP” to clarify the policy.
Subsection G. New subsection added to define the closing agreement and explain that any modification
to a Section 218 Agreement requesting a period of coverage in excess of the three
years beyond the statute period for FICA tax collection, must be processed and approved,
incorporating a closing agreement between the state or local government entity and
the IRS. We include an exhibit of the IRS’s Closing Agreement on Final Determination
of Tax Liability and Covering Specific Matters.