Claimant Doshi applied for social security retirement benefits in March, 1985. He alleged that he had received income from a self-employed consulting business since 1981. He alleged that he gave clients advice on taxes, immigration, real estate, investments, and the import-export trade with India.
The Secretary denied his claim, finding that his consulting work was not a bona fide trade or business and that therefore, there were no creditable earnings from the alleged business. Therefore, claimant did not have enough quarters of credit to achieve fully insured status, and he could not receive social security retirement benefits.
Claimant appealed to the federal district court in northern Illinois. The Court upheld the Secretary’s decision.
Any person who has “fully insured status, has attained 62 years of age, and makes an application, is entitled to receive social security retirement benefits.
In order to achieve “fully insured status”, a person born after 1928 needs forty quarters of work in “covered employment.” A quarter of coverage generally means a three-month calendar quarter. A QC (quarter of coverage) is a unit used in determining eligibility for social security benefits. For the year 2018, the amount of earnings required for a quarter of coverage is $1,320 (this amount was different and much lower in 1985, when Doshi made his application).
As pertaining to Doshi’s case, at the time he needed at least thirty QCs in order to be fully insured. He was not fully insured if his net income from his alleged self-employment as a consultant was not countable.
The Court found that the Secretary’s decision was supported by substantial evidence. Substantial evidence is defined as relevant evidence that reasonable minds might accept as adequate to support a conclusion.
The evidence showed that almost all of claimant’s clients were close family members. Many of the alleged business services he rendered to them were more in the nature of personal services than business services, such as: helping clients locate an apartment for a personal residence, helping a client fill out a resume, discussing prospects about furthering a client’s education and which universities looked promising, and reviewing medico-economic literature. The claimant had almost no business expenses and worked out of his home. He claimed that he had business cards, but did not bring any to the hearing. He did no advertising. He had little to no expertise in the areas of consulting he purported to be engaged in. He did not spend any money on business or trade publications; rather, the literature he reviewed for clients was from free government publications. It appeared to the hearing Judge that his business was solely for the purpose of gaining quarters of coverage for social security eligibility, and was not a bona fide trade or business.
The Court found that the evidence adduced at the hearing was sufficient to support the judge’s decision. In addition, the Court found that the Judge was in the best position to observe the claimant’s demeanor and assess his credibility.
Application denied.
See Doshi v. Sec. of HHS, 1A Unempl. Ins. Rep. ¶ 14,045A (N.D. Ill., E. Div.).
See also Social Security Ruling (SSR) 89-4c.
This material should not be construed as legal advice for any particular fact situation, but is intended for general informational purposes only. For advice specific to any individual situation, an experienced attorney should be contacted.
