TN 1 (03-24)

RM 03846.010 Processing Self-Employment Discrepancy Cases

1. A. 

   The instructions in this section are applicable only if:

   1. 1. 

      The individual made an allegation of discrepant SEI, or

   2. 2. 

      The individual raised a question regarding the coverage of SEI, or

   3. 3. 

      The individual made an allegation of “discrepant wages” which cannot be resolved without development by the FO and SEI is questionable.

      NOTE: If the individual only made an allegation of “discrepant wages” which can be resolved without additional development by the FO, do not develop the SEI coverage question.

2. B. 

   Review all related case material for information (previous investigation, determination etc.) regarding the coverage of the SEI in question. If the file material reflects that the SEI is:

   1. 1. 

      COVERED

      1. a. 

         Request all necessary scouting per RM 03809.000.

      2. b. 

         Based on the results of scouting, make all possible corrections per applicable procedures.

      3. c. 

         Evaluate the results of scouting, any corrective action taken, and the NH's allegation. If the case is:

         1. 1. 

            Complete per RM 03803.013, prepare a closeout letter. Close the case on the electronic control system and dispose of all material.

         2. 2. 

            Incomplete per RM 03803.022, develop the case with the FO per RM 03803.055.

            NOTE: If the SEI in question involves 1967 or earlier, include a photocopy of the schedule SE for each year being developed. For years 1968 or later, include a microfilm print of SEI data received via magnetic tape from IRS for each year being developed.

   2. 2. 

      NON-COVERED

      1. a. 

         Request all necessary scouting per RM 03809.000.

      2. b. 

         Based on the results of scouting, make the following corrections (if applicable):

         1. 1. 

            Non-covered SEI for non-barred years, posted to an incorrect earnings record, should be transferred to the correct earnings record for administrative reasons, and then deleted.

         2. 2. 

            Non-covered SEI for non-barred years, posted to the correct earnings record, should be deleted.

            NOTE: Non-covered SEI for barred years must remain on the earnings record to which it is posted.

      3. c. 

         Prepare a closeout letter.. Provide an explanation of the determination that the SEI is not covered.

      4. d. 

         Close the case on the electronic control system and dispose of all material.

   3. 3. 

      QUESTIONABLE

      Initiate development of the coverage issue with the FO per RM 03803.055.

      NOTE: If current procedures do not cover the specific issue or there is doubt as to the application of the authorities and guides to technical questions on the IRS income tax rules and regulations, route the case to the Office of Income Security Programs (OISP) per RM 03844.047 before preparing a development request to the FO.

      When the reply is received from OISP, take the appropriate action per the applicable instructions in this section based on the information and advice furnished.

      If there is disagreement with OISP's decision, prepare a typewritten memorandum to OISP explaining in a courteous manner the basis of the disagreement. Clear these cases with the mod manager or technical assistant.