To Stephanie Joy., ONLY - we are getting closer. First, it was under self employment but I don't want to ammend return. Unfortunately, if you want to continue to misrepresent it as SE when it is not, then you may have no choice but to accept the ruling that it is such - since that is what you are presenting. That may be influenced by whether you paid SE taxes on it, which we typically would not if it was sale of an asset, even if that asset was in our own business. Generally, we pay SE tax (SS tax) only on work from earnings, which then converts to social security earnings credits in a given year (and may increase our benefit amount).
The IRS is happy and this would open me up for an audit. Which wouldn't be big deal, generally, if all else is properly presented.
Second, The money is not needed. Then why bother? If the $13k goes back, you merely ensure that you get a higher benefit (less of a discount for "early" taking, since you will have now taken it early for less months)...
I am in new york. Now to get back to the problem in more detail. filed form ssa 561-u2 back in october 15,2012. OK, unless there is a recent change, that may have been an HA 501 you wanted. However, it is also true that where there is no Recon, the SSA it to construe it as the request for the next appropriate appeal.
Letter verifying october 24,2013. Wow, letter a year later, confirming your appeal?
letter dec 3, 2012 stating that I will be notified at a latter date. March 6,2013 letter saying march 6,2013 letter saying 'dismissing my request for reconsideration because their was no initial determination'. Good lord, what confused people they can be. Glad you covered your butt though with the appeal, because now you have in writing that there was no determination and therefore they can just garnish (at least not properly).
Called ssa help line. They said they were as confused as I was and start over. march 13,2013 - submitted another form ssa 561-u2. Sept 3, 2013 - got another collection letter. Called local ss office. said they would look into and call back. They are now not returning my call.
I just need to know what to file and where. Try an HA501, but I don't see that as the problem (given the constructive filing). But if you do, attach the letter saying that there was an overpayment, etc. I'd also attached the collectin letter. And given the immense "confusion" that they have created for themselves, if you feel confident you can convince them that it was NOT earnings (did you pay SE tax on that, i.e. SS tax? If you did, that means you were counting it as earnings from work activity. If you did not (which would be better), you can try to argue that it was your business income, but the sale of a business asset, not labor costs/work earnings.
I can send you a PDF of all correspondence and back up info if you give me an email address. No need, that would end up costing you must more, as it would very much exceed the level of transaction you chose.
One more thing, and this is because of the length of time without resolution - consider contacting your Congressman and providing concise but backed up proof of what you say - he can't adjudicate it but if the issue is NOT getting the proper procedural due process, that of an appeal when you disagree with the decision, and they won't move either way, but keep threatening you with collections - then the Congressman can then do a "congressional inquiry" into why the hold up - which generally lights a flame under someone and gets it moving procedurally -- again, he can't tell them how to rule on the substance, he wouldn't even know the law, obviously - but as the 'boss', he can tell them to decide what the determination is, pronto, and allow you to have your appeal properly processed.
But, going back to it - you may just want to give back the $13k if you have concerns about some worms coming out of the can.
I agree with your brother - particularly if the company letter confirms they paid you and it was for the price of 'license to use your name' - an asset, rather than work - even if you made the mistake on your tax return (there is a reason many of us use an experienced tax preparer, to avoid these errors that can cost us plenty).