Source: http://ssa.gov/OP_Home/rulings/oasi/33/SSR72-54-oasi-33.html
Timestamp: 2015-01-30 07:55:54
Document Index: 750849669

Matched Legal Cases: ['§ 405', '§ 404', '§ 404', '§ 404', '§ 404', '§ 404', '§ 405', '§ 404', '§ 405', '§ 405', '§ 404', '§ 404', '§ 404', '§ 405']

Old Age and Survivor's Insurance SSR 72-54c: SECTION 205(c)(4) and (5) (42 U.S.C. 405(c)(4) and (5)). -- FINALITY OF DECISION -- CORRECTION OF EARNINGS RECORD AFTER EXPIRATION OF TIME LIMITATION 20 CFR 404.806, 404.807, 404.908, and 404.959
The Social Security Act, 42 U.S.C. § 405(b) authorizes the Secretary of Health, Education and Welfare to set by regulation the time for requesting a hearing, and it is firmly established that, in the absence of exceptional factors, administratively finality (or administrative res judicata) forecloses reopening or review of adverse determinations which have become final under the regulations Hughes v. Finch, 432 F.2d 93 (4th Cir 1970); Eastley v. Finch, 431 F.2d 1351 (4th Cir 1970); Domozik v. Cohen, 413 F.2d 5 (3rd Cir. 1969); Sangster v. Gardner, 374 F.2d 498 (6th Cir. 1967); Hobby v. Hodges, 215 F.2d 754, 759 (10th Cir. 1954).
The determination of August 28, 1961 had long become final under the Social Security Administration's regulations which provide, 20 C.F.R. § 404.908 (1971), that the "initial determination shall be final and binding upon the party or parties to such determination unless it is reconsidered in accordance with §§ 404.910-404.916, or it is revised in accordance with § 404.956."[1] The first reference (§§ 404.910-404.916) is to normal and routine reconsideration, with the ordinary six months time limit (of which remedy appellant did not avail himself at all). However, the regulations also authorize an extension of time of the ordinary six-months period, or a reopening of the determination, under certain conditions. Except for fraud or several other specific grounds (none of which is present here), there can only be reopening "within 4 years after the date of the notice of initial determination or decision" (§ 404.957(b)). Since the initial determination was given on August 18, 1961, this regulation barred reopening after August 28, 1965.
It is equally unavailing for appellant to rely on the extension-of-time provisions[2] -- which are separate, and apparently distinct, from the "reopening" sections (see Cappadora v. Celebrezze, F.2d 1, 3 n.1 (2d Cir. 1966)) -- because the grant of an extension is barred where, as here, "the sole purpose of the request is to seek revision of an individual's earnings record or a finding as to wage or self-employment income after revision is precluded by the provisions of section 205(c)(4) or (5) of the [Social Security] Act [42 U.S.C. § 405(c)(4) or (5)]." 20 C.F.R. § 404.954(a) (1971). Under section 205(c)(4)(5), 42 U.S.C. § 405(c)(4)(5), changes in wage or self-employment records can readily be made prior to the expiration of the statutory time limitation (three years, three months, and fifteen days) following the year in question; that period had obviously expired, with respect to 1958, 1959, and 1960, well before 1968 when appellant first supplied the needed documentation.
After the expiration of the statutory time limitation, the departmental records are final with certain exceptions. Appellant relies on one of these, relating to the claimant's filing of an income tax return showing self-employment income can be used to correct the agency's own records. 42 U.S.C. §§ 405(c)(4)(C) and 5(F)(i). Since appellant wanted the Administration to accept his 1958-1960 earnings as reported on his tax returns only if the latter would make the Administration's records "more nearly correct" (20 C.F.R. § 404.806(f) and 404.807(1971), and it was the Administration's consistent position that, because Mr. Thompson's tax returns did not take account of the expenses of his law practice, they were not accurate reflections of self-employment earnings. In those circumstances, it would not be, and was not, an abuse of discretion to refuse to recognize the exception to finality which appellant invokes.[3]
The upshot is that, by 1968, when appellant finally submitted the necessary information, he was firmly barred under the regulations. When thereafter he sought a hearing, the hearing examiner correctly dismissed his request under 20 C.F.R. § 404.937(a) (1971), providing for such disposition where there has been a previous determination on the same issue which has become final "upon the claimant's failure timely to request reconsideration, hearing, or review or to commence a civil action * * *".
[2] Mr. Thompson did not in fact request an extension of time under 20 C.F.R. §§ 404.953 or 404.954, but we are assuming, without deciding, that some of the voluminous correspondence with the Social Security Administration could be considered in effect such a request.
[3] Appellee contends that appellant's specific argument based on 42 U.S.C. § 405(c)(4) and (5) was not raised below and is therefore not open here, but we have dealt with it because the District Court refers, summarily, in its opinion to those statutory provisions as not being available to appellant.