TN 7 (11-94)

A. POLICY

Unposted SEI is not assumed to be correct if amended (1040X and other related schedules) or delinquent return was filed less than 6 months before the application for benefits.

B. PROCEDURE

Develop SEI reported on a delinquent or amended return if it:

• Changes the PIA by $1.00 or more, or

• Reduces materially the earnings for annual earnings test purposes, or

• Affects insured status.

If development is required:

• Request copies of the original and amended returns and an explanation for the correction.

• Determine reason for late filing if a delinquent tax return is involved.

• Evaluate the facts and determine if facts are sufficient.

  • If yes, accept reported SEI.

    If no, undertake additional development.

    (Most cases will involve a question of whether a bona fide business exists, which should be developed per
    RS 01804.070.)

• Document the claims file.