There may be a penalty deduction (see §1820) in your benefits if you fail to file your annual report of earnings in a timely manner, if all of the following factors exist:
You did not make an annual report of earnings within three months and 15 days after the close of the taxable year;
We cannot find good cause for your not reporting on time (see §1832);
A work deduction (part or all of one month's benefit) is required because of your earnings; and
You received and accepted a benefit check for one or more months during that taxable year.
If you fail to file your annual report on time, you will not receive:
Any benefit payments withheld due to your failure to file an annual report on time; and
Any monthly benefit payments that must be withheld because of your excess earnings in the year the annual report was due.
Note: See sections §1814 and §1819 above. We accept the information on the W-2 forms and the SE tax return to be the annual report of earnings required by law. We assume that all adjustments to benefits were based on a report filed on time. No penalty is imposed unless you knowingly and intentionally attempted to hide your earnings from us in an effort to avoid the payment of taxes and/or to avoid deductions under the earnings test.