Opinion ID: 221431
Heading Depth: 2
Heading Rank: 1

Heading: Earnings Coverage from 2001

Text: Although the Commissioner in this case originally determined that Alexander had income from his wife’s business in 2001, the Commissioner later corrected this finding and concluded that Alexander had no income in 2001. Generally, the Commissioner may correct any entry of wages or self-employment income before the expiration of the “time limitation.” 42 U.S.C. § 405(c)(4). The time limitation is a period of 3 years, 3 months, and 15 days after the individual received earnings. Id. at § 405(c)(1)(B). “Before the time limit ends for any year, [the Commissioner] will correct the record of [an individual’s] earnings for that year for any reason if satisfactory evidence shows SSA records are incorrect. [He] 7 may correct the record as the result of a request filed under § 404.820 or [he] may correct it on [his] own.” 20 C.F.R. § 404.821. After the time limit expires, the Commissioner’s records generally are conclusive evidence of the individual’s wages or self-employment income. 42 U.S.C. § 405(c)(4)(A). But the statute and regulations permit the Commissioner to correct an individual’s earnings records after the time limit under certain circumstances. Id. at § 405(c)(5); 20 C.F.R. § 404.822. One of those circumstances is when “an application for monthly benefits . . . was filed within the time limitation following such year; except that no such change, deletion, or inclusion may be made pursuant to this subparagraph after a final decision upon the application for monthly benefits.” 42 U.S.C. § 405(c)(5)(A) (emphasis added). This is known as the pending-application exception. In this case, we conclude that the Commissioner could amend Alexander’s earnings record in 2007 under the pending-application exception because Alexander had filed an application for benefits within the time limit for correcting his earnings record and there was not yet a final decision on his application. 42 U.S.C. § 405(c)(5)(A) . Nothing in the statute or regulations prohibits the agency from revisiting its earlier earnings record decision if there is a pending application. 42 U.S.C. § 405(c)(5)(A), (B); 20 C.F.R. § 404.822(c). Accordingly, the agency 8 did not err when it addressed his 2001 earnings after the time limitation expired and determined that he had no coverage that year.