20 CFR 404.454
R, the worker, submitted in October 1971 her 1970 annual report of earnings, showing total earnings of $2.146. Based on this report the Social Security Administration determined that $233 should have been withheld from benefits payable in 1970. An additional deduction of $74.50 was imposed because R failed to make a report within the time prescribed by law.
Evidence of record shows that the earnings provisions were explained to R when she filed application for benefits in July 1967. At that time she had agreed to file an annual report of earnings within the time prescribed by law for any taxable year in which she earned more than the allowable amount. The evidence also shows that R made timely reports of her 1968 and 1969 earnings. Therefore, she should have been aware of the necessity for reporting her 1970 earnings timely.
Since R disagreed with the determination made on her claim, the question to be resolved is whether she had good cause for the failure to file a timely report of her 1970 earnings.
Section 203(h) of the Social Security Act provides that if an individual is entitled to a month benefit during any taxable year in which his earnings would require deductions from his benefits, he shall make a report to the Secretary of such earnings before the fifteenth day of the fourth month following the close of such taxable year. If the individual fails to make the required report, an additional deduction shall be imposed against his benefits.
Section 203(l) of the Act provides that failure of an individual to make any report required, within the time prescribed therein, shall not be regarded as such a failure if he establishes to the satisfaction of the Administration that his failure to file a timely report was due to good cause and not due to any willful neglect.
Section 404.454 of Regulations No. 4, Social Security Administration, provides, in pertinent part:
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Subsequent to the determination in issue, R submitted a report by her physician, who had been treating her since March 1971. This report indicated that she had suffered a severe illness which caused a loss of memory. In addition, a letter from R's employer, confirmed the fact of her progressive forgetfulness, which necessitated limiting her duties to those requiring little responsibility.
Accordingly, it is held that R's failure to file a timely report of her 1970 earnings, caused by her serious illness and loss of memory, constitutes good cause within the meaning of section 203(l) of the Act and an additional deduction will not be imposed.
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