TN 13 (06-11)

A. Policy on determining on how much to deduct

Make an initial determination:

• upon receipt of an annual report or amended annual report; or

• when work deductions are imposed based on the earnings posted to the Master Earnings File (MEF), an enforcement action; or

NOTE: If a beneficiary is in total work deductions, does not file an annual report, and selected by the RSI Earnings Enforcement Program, they must file an annual report (report of earnings). The beneficiary must file the report of earnings within 3 years, 3 months, and 15 days after the close of each taxable year in order to claim benefits in accordance with the regulations on reopening. For information on reopening deduction determinations under the annual earnings test, see GN 04030.030.

B. Determination of whether earnings are subject to deductions

• Determining whether prior earnings are subject to deductions or a claimant is retired is binding for subsequent years if the factual situation is the same.

• Because substantial services in self-employment may vary from month to month, a determination with respect to substantial services in a subsequent period usually involves a different factual situation from that previously considered.