Effective Dates: 09/11/2026 - Present Previous | Next

Last Update: 2026-09-11 TN 011-115

HA 01120.055 Representative Is Eligible to Receive Direct Fee Payment — Procedures up to Receipt of Petition

A. Effectuating Component's Actions After Decision Issued

The effectuating component will:

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    Issue a notice of award. After effectuating a fully or partially favorable Title II and/or Title XVI decision in a case, in which the claimant was represented and there was not fee agreement in the file, or the fee agreement was disapproved, the appropriate processing center (PC) or field office (FO) sends a notice of award to the claimant and principal representative.

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    Set a 60-day diary from the date of the decision. For cases with Federal court involvement, this diary period is extended from 60 days to 120 days. See POMS GN 03930.045B.

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    For hearings-level cases, email the staff of the decision maker who issued the decision (includes Special Review Cadre) at the end of the 60-day or 120-day diary period if the effectuating component has not received a fee authorization or information that the representative was granted an extension of time. The PC or, in Title XVI only cases, the FO will send an email requesting status to the decisional office.

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    For Appeals Council (AC) cases, contact Disability Compliance, Hearings In-Line Quality Review (Hearings ILQR) at ^DA DICompliance Hearings ILQR Fees at the end of the 60-day or 120-day diary period if the effectuating component has not received a fee authorization or information that the representative was granted an extension of time. The PC or, in Title XVI only cases, the FO will send an email requesting status to Hearings ILQR.

The notice of award informs the claimant and the representative of:

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    The amount of benefits due,

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    The amount withheld for the payment of a representative(s) fee, and

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    In cases where a fee petition is required for a fee authorization, the requirement that the representative(s) eligible for direct fee payment file a fee petition, or written notice of the intent to file a fee petition, within 60 days of the date of the decision notice in order for the representative(s), or the entity if there is a valid assignment of fees to an entity, to receive direct payment of a fee from withheld benefits.

NOTE: 

If there is a valid assignment of direct payment of fees to an entity, the Social Security Administration (SSA) may also share the award notice with the entity's point of contact (POC) if it is necessary to resolve a fee-related matter. For information on assignment of direct payment of fees, including the roles and responsibilities of a POC, see Program Operations Manual System (POMS) GN 03920.021.

If a hearings-level decision maker issued the fully or partially favorable decision and he or she has not received a fee petition or waiver statement, check if an extension has been requested or granted. If no extension has been requested or granted, the PC or FO will send the representative or POC a 20-day closeout notice and diary the case for 45 days. If there is evidence of the limited circumstances described in Hearings, Appeals, and Litigation Law (HALLEX) manual HA 01120.053A (see also POMS GN 03920.020A), the effectuating component sends this notice to the entity's POC or the representative's estate executor, as appropriate.

If an AC decision maker issued the fully or partially favorable decision, the PC or FO will email ^DA DICompliance Hearings ILQR Fees to request a closeout notice be issued. The PC or FO will diary the case for 45 days.

At the end of the 45-day diary period, the PC or FO will contact the hearings-level staff or ^DA DICompliance Hearings ILQR Fees to determine whether the PC or FO may release the past-due benefits.

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    If the contacted office has not received the fee petition or an indication that the representative, or an individual, in the limited circumstances described in HALLEX HA 01120.053A, will file a fee petition by the end of any extension of time granted, that office's staff will immediately advise the PC or FO to release the past-due benefits if there is no other reason to withhold them, e.g., other representatives who may receive direct payment, or court involvement.

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    If the staff has received or expects to receive a fee petition by the end of any extension of time granted, it will advise the PC or FO to continue to withhold payment.

B. Coordination with Effectuating Component

1. Communication After the Notice of Award

If the claimant's representative is eligible for direct fee payment and, within 60 days, or 120 days for cases with court-involvement, of the date of the notice of award, the PC or FO does not receive the fee authorization, a written notice of the representative's intent to file a fee petition, or information that the representative was granted an extension of time, the PC or FO will contact the office that issued the favorable decision to request the fee authorization or status update.

The contacted office will respond as soon as practicable and advise the PC or FO whether they have received:

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    A fee petition and added it to the claim(s) file or sent the fee authorization to the PC or FO, as appropriate (see HALLEX HA 01120.053B.3., below),

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    A fee petition and authorization is pending,

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    A statement of intent to petition and granted an extension of time to file,

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    A fee waiver statement or direct payment waiver statement, or

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    Neither a petition, intent to file a petition, nor a request for an extension to file one.

NOTE: 

If the contacted office does not provide a timely response, the PC or FO will refer the matter to ^DA DICompliance Hearings ILQR Fees.

2.  Staff Received Fee Petition or Statement of Intent to File One

If hearings or AC-level staff received a fee petition or a statement of intent to petition, the staff will:

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    Advise the PC or FO when the authorizing official expects to issue the fee authorization if the decision was issued more than 90 days before the petition was received;

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    When a statement of intent was received, set an appropriate diary in the case processing system;

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    When a fee petition is received, enter the petition information into the case processing system(s); and

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    Immediately begin processing the fee petition so that the fee authorization can be forwarded to the PC or FO as soon as possible.

NOTE: 

If the hearings or AC-level decision maker approved a fee agreement and the representative subsequently filed a fee petition, either on their own initiative or in response to an erroneous notice from the PC or FO, refer to HALLEX HA 01120.043D.2. and HA 01120.044D.3.

3. Action Completed on Fee Petition

When the authorizing official completes their action on the fee petition, staff will email a copy of the fee authorization with an explanation documenting the rationale for setting the fee, to the appropriate PC or the appropriate FO in Title XVI only cases and ensure a copy is included in the claim(s) file. PC control mailboxes are provided in HALLEX HA 01120.096. FO fax numbers can be accessed in the DOORS application by entering the field office code.

4. Fee Petition Not Received

If the authorizing official has not received any of the documents described in HALLEX HA 01120.055B.1., above, staff will advise the PC or FO of this by email in response to the request for status. For cases decided at the hearings level, the PC or FO will send a closeout notice (see HALLEX HA 01120.055A, above). For a case decided by the AC, or where the AC took the last administrative action, Hearings ILQR will send a closeout notice (see HALLEX HA 01120.055B.5., below).

5. The Closeout Notice

If Hearings ILQR did not receive a fee petition or a statement of intent to petition within 60 days of the date of the decision, staff will send the representative a 20-day closeout letter advising the representative that:

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    They must file a fee petition or a written request for an extension of time if they intend to charge a fee or notify Hearings ILQR if they are waiving the fee.

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    SSA will release any withheld past-due benefits to the claimant if no petition or request for extension is received within the 20-day period.

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    The release of withheld benefits does not relieve the representative of the responsibility to file a petition if they later decide to charge a fee.

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    Attempting to collect a fee without obtaining SSA's authorization could violate section 206(a) of the Social Security Act (42 U.S.C. 406(a)) and the regulations (20 CFR 404.1740(c) and 416.1540(c)).

6. Requests for an Extension of Time

If hearings or AC-level staff receive a request for an extension of time before the 20-day closeout period expires, the staff will send an acknowledgment letter granting a 30-day extension of time and set a 40-day diary in the case processing system. Hearings or AC-level staff will generally not grant a second request for an extension of time to submit a fee petition.

7. Release of Withheld Benefits

The PC or FO will release withheld past-due benefits to the claimant if the representative(s) eligible for direct fee payment waives the fee or does not submit a fee petition or intent to file a petition and the PC's or FO's last diary date expires (if there is no other reason to withhold them, e.g., other representatives who may receive direct payment, or court involvement). Therefore, when the representative submits either the fee petition or a statement of intent to file a fee petition, staff must immediately advise the PC or FO to prevent the erroneous release of past-due benefits.

If hearings or AC-level staff do not receive a fee petition after the 40-day diary for an extension of time, or after the 20-day closeout period expires when there is no request for an extension, the staff will send the representative a notice informing the representative that the PC or FO will release the withheld past-due benefits to the claimant. The staff will also respond to the PC or FO status request advising the PC or FO that withheld past-due benefits may be released to the claimant.

To Link to this section - Use this URL:
http://policy.ssa.gov/poms.nsf/lnx/2501120055
HA 01120.055 - Representative Is Eligible to Receive Direct Fee Payment — Procedures up to Receipt of Petition (I-1-2-55) - 09/11/2026
Batch run: 09/11/2026
Rev:09/11/2026