TN 13 (08-10)

A. Definition

Delinquent - An individual is delinquent if they have not filed a Form 1040 tax return for one or more years with IRS.

B. Procedure

1. Self-Employed person is delinquent

In the case of a self-employed individual who is delinquent in filing his tax return:

1. Encourage the individual to file a tax return;

2. If evidence of filing a tax return is subsequently received

   • Credit the SEI for entitlement and computation purposes;

   • Do not prepare an ICOR just because the return was delinquent since a tax return was already filed

   • Prepare an ICOR only if an examination of the tax return reveals incorrect reporting. See MSOM EM 010.001 for a discussion of ICOR processing.

If the individual is deliquent and does not file a tax return and submits evidence to the field office, do not credit the SEI for entitlement or computation purposes. Prepare an ICOR showing the correct amount of SEI if it can be determined from the information and evidence furnished by the individual. If the SEI cannot be determined, provide a thorough explanation on the ICOR worksheet and or rationale screen; notify IRS.

2. Self-Employed person is not delinquent

If a self-employed person is not delinquent:

1. Use the SEI established for entitlement and computation purposes without requiring the individualto file an amended tax return if the correct amount of SEI can be established and the time limitation has not expired (see RS 02201.019 for a discussion of SE tax returns filed after the expiration of SSA’s time limitations).

2. Prepare an ICOR. See MSOM EM 010.001 for a discussion of ICOR processing.

3. Ask the claimant to file an amended tax return if the correct amount of SEI cannot be determined and to furnish the FO with a copy.

4. Do not prepare an ICOR if an amended return is filed, unless an examination of the amended return reveals incorrect reporting.