The Social Security Administration (SSA) requires individuals to make timely reports under specific provisions.
However, in some cases, failure to report on time may be excused if the individual can prove that they had good cause for their delay. This blog post will discuss the good cause exceptions as outlined in § 404.454 and provide examples of when these exceptions may apply.
- Serious Illness or Death in the Family: Good cause may be found if an individual’s failure to file a timely report was due to their serious illness or the death or serious illness in their immediate family.
- Inability to Obtain Earnings Information: If the individual cannot obtain earnings information from their employer within the required time due to the employer’s death, serious illness, unavoidable absence, or destruction of their business records, good cause may be established.
- Destruction of Individual’s Business Records: Good cause may be found if an individual’s business records are destroyed by fire or other damage, preventing them from filing a timely report.
- Transmittal to Another Government Agency: If an individual sends the required report to another government agency in good faith, but the report does not reach the SSA until after the reporting period, good cause may be recognized.
- Unawareness of Reporting Requirement: An individual may claim good cause if they were unaware of the statutory provision requiring an annual report of earnings for the taxable year in which they attained age 72, provided their earnings for that year exceeded the applicable amount.
- Failure to Receive Forms in Time: Good cause may be found if the SSA failed to provide forms in sufficient time for the individual to complete and file the report, provided that the individual made a timely request for the forms.
- Belief in Extension of Time: If an individual believes that an extension of time granted by the Internal Revenue Service for filing income tax returns also applies to the annual report to the SSA, good cause may be recognized.
- Reliance on Prior Written Report: Good cause may be found if the individual relied on a written report made by or on behalf of the beneficiary, which contained sufficient information about the beneficiary’s earnings or work, provided that the report was not subsequently refuted or rescinded.
- Physical, Mental, Educational, or Linguistic Limitations: An individual may claim good cause if their failure to understand reporting responsibilities is due to their physical, mental, educational, or linguistic limitations.
Here’s an example of when good cause may be found for failure to report timely:
Let’s say John, a Social Security beneficiary, was supposed to report his earnings for the previous year to the SSA by April 15. However, John was in a serious car accident in early April and had to be hospitalized for several weeks. Due to his serious injuries, John was unable to file his earnings report on time.
In this case, John may be able to establish good cause for his failure to file a timely report. His serious illness and hospitalization prevented him from meeting the deadline, and this was beyond his control. If John can provide evidence of his medical condition and hospitalization to the SSA, they may accept this as good cause and not impose a penalty deduction for his late report.
Conclusion: It’s crucial to be aware of the good cause exceptions for failure to report timely to the SSA, as these may prevent penalty deductions. If you believe you have good cause for not reporting on time, make sure to provide evidence to the SSA and be aware of your reconsideration rights. Remember that good cause typically will not be found for subsequent violations under similar circumstances.
https://www.ssa.gov/OP_Home/cfr20/404/404-0454.htm
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