TN 20 (10-11)

A. Definition of administrative tolerances

Administrative tolerances are conditions which we do not assess a penalty.

B. Applying administrative tolerances

If we assessed a penalty for this late report, delete the penalty data field. Do not assess a penalty in the following situations:

• the beneficiary is “without fault” in causing an overpayment, regardless of whether we waive the overpayment.

• the beneficiary is in terminated status at the time we process the late report.

• the family maximum is involved, even when the number holder (NH) is the worker.

• we impose a work deduction in the annual report year.

• the month of entitlement (MOE) changes to the following year.

• a person files a timely annual report of earnings but the amount shown was “0” or below the exempt amount.