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Preacher Misery Revisited

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    Preacher Misery Revisited

    I have a minister who was not "full" retirement age, so he was targeted by SSA is having to pay the $1 for $2 earnings penalty for making too much money.

    However, the calculation of self-employment income, even with the housing allowance, was less than the SS threshhold for the penalty. The notice from SSA showed calculations, but they were obviously incorrect, even according to their own literature.

    This was for calendar year 2007. I prepared a response to SSA for my client.

    One of our board members had the same problem for 2007, and posted. In the various responses, there was mentioned that the SSA error was very widespread and perhaps thousands of preachers were left in the lurch, and national attention had been brought to the matter. At the time, I consulted with my client, who had received yet another letter from SSA informing him that the matter was "under review" and the penalty was suspended pending further analysis.

    A couple weeks ago, my client received yet another letter from SSA, this one informing him that he did indeed make more self-employment income in 2007 than the threshold, and they were going to withhold from his monthly benefits until the penalty was fully paid.

    Does anyone remember the issue from a couple years back? M A Malody are you out there? Anyone know of further developments? This thing should have been a dead duck long ago...

    #2
    This should be a simple matter of showing the error of their calculations. If their response does not seem to take that into account there are only two resolutions that I know of. Before I pursue either of those I would recommend a review of the SSA review process to see where you are in it. Based upon your facts, it is possible you may be in the reconsideration state. http://www.socialsecurity.gov/pubs/10041.html

    1. Contact them in writing, referencing any case/appeal numbers present, at :
    Social Security Administration
    Office of Public Inquiries
    Windsor Park Building
    6401 Security Blvd.
    Baltimore, MD 21235

    Unfortunately, I am not away of any Ombudsman (sp) point of contact for SSA.

    2. Failing that, or if you prior correspondence covered all that, and I suspect it did, you will probably have to consult with an attorney specializing in SSA issues. He can confirm your calculations and recommend a course of action. I assume a cost benefit analysis would justify this additonal expense.

    Keep us posted on your process. If you choose you can contact me directly at ClergyTaxes@aol.com. Be advised that if you contact me directly you will loose the benefit of peer review that this message board provides.

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