TN 9 (05-90)

A. PROCEDURE

Consider:

• The amount of time devoted to the trade or business. See RS 02505.075.

• The nature of the services rendered.

• Comparison of services before and after retirement.

• The setting in which the services were performed.

B. KINDS OF FACTORS TO CONSIDER

Also consider:

Periods of Vacation, Sickness or Other Illness

• Consider the beneficiary as not rendering services if idle for those reasons.

Distinguish Ownership from SS

• Ownership of an operating business is not controlling in establishing retirement.

• Retirement does not require divestment of ownership.

• Beneficiary may arrange affairs so as not to require SS in one or more months.

Distinguish Between Earnings and SS

• There is not necessarily a connection between earnings from SE and SS.

• Earnings from SE may come after the month services were rendered.

• Earnings may represent profits based solely on investments or past services.

• Services may be substantial in a month in which no income is realized.

• Services may not be substantial in a month of substantial earnings.

• Consider earnings to the extent that earnings from SE truly reflect the kind and amount of services rendered in a month.