Effective Dates: 01/27/1999 - Present Previous | Next

TN 8 (05-95)

GN 05010.220 Waiver of Recovery of Tax Part of Overpayment

A. POLICY

SSA considers an overpaid beneficiary to be without fault with regard to the tax portion of the overpayment and recovery of the tax part of the overpayment is deemed to be against equity and good conscience.

B. PROCEDURE

1. General

Compute tax amount of overpayment by subtracting the tax which should have been withheld if the correct MBC had been paid from the tax which was withheld.

Waive recovery of this amount at the time the overpayment is computed. Do not undertake any waiver development since the requirements for waiver are deemed to be met under A.

Show “GN 05010.220” in items 11(a) and (b) of the Form SSA-635 (Waiver Determination) as the basis for determining the individual is without fault and that recovery is against equity and good conscience.

Do not notify the overpaid beneficiary of the waiver action.

NOTE: If the tax which should have been withheld exceeds the amount which was withheld, there is no tax part of the overpayment.

2. OIO Action

In addition to the action required under 1. above, use a Form SSA-382-U2 (INTPSC Diary Listing) to list the case as follows:

  • •

    Code 179 — waiver of tax part of retirement or survivors benefit overpayment;

  • •

    Code 180 — waiver of tax part of disability benefit overpayment.

Prepare a separate listing for each beneficiary.

C. EXAMPLE

Same as in GN 05010.210B.2.

Month Check
Paid 		Tax
Withheld 		MBC
S/H/B
Paid 		Tax
S/H/B
Withheld
4/95 $298.00 $102.00 $372.50 $127.50
5/95 298.00 102.00 372.50  127.50
6/95 298.00 102.00 0 0
7/95 298.00 102.00 0 0
8/95 298.00 102.00 0 0
​ ​ 510.00 ​ 255.00
Tax Withheld: $510.00
Tax S/H/B Withheld -255.00
Tax Part of Overpayment 255.00
To Link to this section - Use this URL:
http://policy.ssa.gov/poms.nsf/lnx/0205010220
GN 05010.220 - Waiver of Recovery of Tax Part of Overpayment - 01/27/1999
Batch run: 01/27/1999
Rev:01/27/1999