If someone other than the representative payee is responsible for accepting the payments,
then the responsible party owes a debt for those payments. The specific circumstances
of the indebtedness dictate whether or not benefit withholding is authorized. Each
case must be examined on its own merits.
For example, individuals who negotiate stolen or forged checks generally cannot be
subject to benefit withholding under section 204 of the Social Security Act. Section
207 of the Social Security Act prohibits collecting the debt by withholding benefits.
If you identify a case in which an individual other than the representative payee
is responsible for the overpayment, contact your program analyst (in the PC) or other
designated individual in the RO, as appropriate, for additional guidance. That designated
individual will provide guidance or will contact Central Office for more information
about the authority to withhold benefits. Do not take action to initiate benefit withholding.