RM 03846.001 Self-Employment Income-General
The 1950 Amendments extended social security coverage to self-employed individuals beginning with tax year 1951. At that time, [WB1] forms (Schedules SE) were devised to enable the Internal Revenue Service to provide the Social Security Administration with information necessary for posting to the earnings records
The Schedules SE were filed with IRS as a part of the income tax reports. After processing the income tax reports, IRS detached and forwarded the Schedules SE to SSA. The information shown on the Schedules SE was punched into cards, and the cards were used as input to the balancing and posting operations. Since any questions arising regarding the SE posting could require reference to the original schedules, each schedule was microfilmed for permanent documentation. Reference to specific schedules is achieved through the use of the master block and unit number (as assigned the Division of Earnings and Business Services) reflected on the earnings records. Although many system changes have been implemented over the years, the Schedules SE have remained the basis for processing self-employment reports.
Now, however, DEBS has devised and implemented a system whereby IRS extracts self-employment reporting data from the related income tax documents and forwards the data to DEBS [WB2] on magnetic tape. Because tape records are received without documentation (Schedules SE), it is necessary for DEBS to prepare a reference list microfilm which will take the place of the Schedules SE for reference purposes. This is accomplished by converting data reflected on the tape to microfilm during the processing of the records. This system of reporting was first applied to SE reports for the tax year 1968.
Virtually all self-employment reporting data (including adjustments) are now submitted by IRS.