20 C.F.R. § 416.722

Circumstances under which we make a penalty deduction.

        A penalty deduction is made from your benefits if—

        (a) You fail to make a required report on time (see §§ 416.708 and 416.714);

        (b) We must reduce, suspend, or terminate your benefits because of the event you have not reported;

        (c) You received and accepted an SSI benefit for the penalty period (see §§ 416.724 through 416.728 for penalty period definitions); and

        (d) You do not have good cause for not reporting on time (see § 416.732).

Official source