Effective Dates: 10/08/2024 - Present Previous | Next

TN 22 (10-24)

GN 03970.060 Field Office and Regional Office Action When a Representative is Suspended or Disqualified

A. Prohibition from representing during suspension or disqualification

1. Representative

An individual who was suspended or disqualified following sanctions proceedings is prohibited from representing claimants before the Social Security Administration (SSA). See GN 03970.030 for general information about the sanctions process. Once we issue a final decision to suspend or disqualify a representative, we administratively withdraw the individual from being the appointed representative for any claimant, beneficiary or recipient, or auxiliary on any matter pending before us. A claimant cannot appoint and we cannot recognize a suspended or disqualified individual as a representative. The suspended or disqualified individual cannot hire other representatives to work on their behalf or exercise any of the authority described in GN 03910.025.

2. Point of Contact (POC)

In addition to the prohibition against providing representational services, a sanctioned individual may not serve as the POC for an entity. If the entity did not designate another individual who meets the necessary requirements to serve as a POC, the entity will be rendered ineligible for direct payment (see GN 03920.052) and will not receive any assigned direct payments unless and until the otherwise eligible entity names a new qualified POC on an updated Form SSA-1964. Once we process the updated Form SSA-1694 we will honor any assignments made prior to the entity’s lapse in eligibility, as long as we have not already paid a fee in that claim(s), and any timely assignments made after the entity regains eligibility.

For additional information about the assignment process and the role of the POC, refer to GN 03920.021. Refer to GN 03913.050 for additional information on registering and updating registration information for entities. For eligibility requirements for entities to receive direct payment, see GN 03920.016.

3. Fee

A sanctioned individual may not charge or collect a fee for representational services performed after the effective date of the sanctioned individual's suspension or disqualification. A sanctioned individual cannot legally provide representational services to claimants. As a result, the sanctioned individual may not receive authorization to charge or collect fees for those services. This limitation applies even if the sanctioned individual had validly assigned direct payment of their fee to an entity as described in GN 03920.021.

Although a representative may be entitled to a fee for services that the representative provided up to the date of their suspension or disqualification, the representative cannot receive direct payment of any fee after the effective date of their sanction. In addition, when the representative had assigned direct payment of their fee, the affiliated entity will not be able to receive direct payment of any fee authorized, even for services performed before the representative’s suspension or disqualification. Because a representative must be eligible to receive direct payment to assign direct payment to an eligible entity, the sanctioning of a representative invalidates any existing assignments (see GN 03920.021).

a. Fee agreement

We will disapprove a suspended or disqualified individual’s fee agreement if we favorably decide the claim after the effective date of the individual’s sanction.

b. Fee petition

A suspended or disqualified individual may petition us to authorize a fee for services provided on or before the effective date of the sanction. However, they may not petition for a fee for services provided after the effective date of the sanction because the individual is prohibited from acting as a representative after that date.

NOTE 1: 

In the limited circumstances described in GN 03930.020A when a representative is deceased, we will accept a fee petition submitted by one of the other individuals listed in that subsection. When the deceased representative was sanctioned, any assignment is invalidated and the entity’s point of contact (POC) may not submit the fee petition. Instead, like the representative, the other individuals listed in GN 03930.020A may file the fee petition only for services the representative performed before the effective date of the representative’s sanction.

NOTE 2: 

Even though a sanctioned individual may seek and receive authorization to charge and collect a fee for services provided on or before the effective date of their suspension or disqualification, they are not eligible for direct payment of the authorized fee. Therefore, collection of the authorized fee is a matter between the sanctioned individual and the claimant, or one of the other individuals listed in GN 03930.020A and the claimant in the limited circumstances described in that subsection. For information on payment of the fee, see GN 03920.016.

B. Prohibition on indirect representation and indirect fees for suspended or disqualified individuals

1. Suspended or disqualified individual as an employer

a. Representation

A suspended or disqualified individual may not employ others, either directly or indirectly (i.e., through another person or business entity), to represent claimants or beneficiaries before us.

We consider a sanctioned individual who provides representational services to others through employees, to be indirectly providing representational services in violation of the suspension or disqualification decision. If any office discovers a possible violation, the office will develop and refer the case to the Office of the General Counsel (OGC) per GN 03970.017 or GN 03970.025 as applicable.

b. Fee

When a representative employed by a sanctioned individual receives a fee for the representational services they performed, the representative cannot hand over this fee or any portion of this fee to the sanctioned individual. If the representative hands over the fee, any amount collected by the sanctioned individual is an indirect collection of an unauthorized fee for providing representational services and the sanctioned individual has collected it in violation of our Rules of Conduct and Standards of Responsibility for Representatives discussed in GN 03970.010.

A representative employed by an entity may continue to assign direct payment of their fee to that entity as described in GN 03920.021 even if another individual(s) associated with that entity is sanctioned. If the representative authorized a fee or any other person, including the entity's POC, attempts to transfer the fee to the sanctioned individual, any amount collected by that individual is an indirect collection of an unauthorized fee and a violation of the Rules of Conduct and Standards of Responsibility for Representatives. Although we do not ordinarily investigate the contractual and payment relationships between entities and their salaried employees, if any office is made aware of a possible violation, they will develop and refer the individual representative(s) they suspect were involved to OGC per GN 03970.017 or GN 03970.025, as applicable.

2. Suspended or disqualified individual as an employee

a. Representation

A suspended or disqualified individual may neither be employed by, nor make arrangements to be employed by, a representative or entity to perform any actions related to a claim or potential claim before us as normally allowed under GN 03910.025. Such prohibited actions include the following:

  • •

    Interpreting agency law and policy;

  • •

    Requesting access to claimant records;

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    Interviewing or advising Social Security applicants, claimants, beneficiaries, or recipients;

  • •

    Presenting evidence;

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    Appearing at hearings;

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    Examining witnesses;

  • •

    Filling out agency forms; and

  • •

    Drafting or signing pleadings and briefs.

Sanctioned individuals who perform such actions are indirectly providing representational services and are in violation of the suspension or disqualification.

A representative who knowingly assists a sanctioned individual in providing representational services can also be subject to sanctions under Social Security regulations, 20 CFR 404.1740(c)(12) and 416.1540(c)(12). If you suspect that a representative is assisting or employing a sanctioned individual to provide representational services to claimants, you should immediately refer the matter to OGC under the procedures described in GN 03970.017.

b. Fee

A sanctioned individual, who receives a salary or a fee for performing actions (as described in GN 03970.060B.2.a) delegated by another representative or entity, is indirectly collecting an unauthorized fee for indirectly providing representational services. The sanctioned individual who receives such salary or fee is in violation of the Rules of Conduct and Standards of Responsibility for Representatives (see GN 03970.010).

C. Action when a suspended or disqualified individual continues to act as a claimant’s representative

So long as a suspended or disqualified individual continues, directly or indirectly, to perform representational services or collect fees or a salary for performing representational services, we will not reinstate that individual to practice before us.

In addition, we may initiate a new sanction proceeding against an individual, if the individual’s period of suspension has ended, but while suspended, the individual directly or indirectly performed representational services, collected any fees, or received a salary for performing representational services. We may initiate such proceedings based on the individual’s failure to conduct the individual's dealings with us in a manner that furthers the efficient, fair, and orderly conduct of our administrative decision-making process; on their violation of our fee regulations; on their failure to comply with our sanction decision; or on other applicable law or regulation. See 20 CFR 404.1740(c) and 416.1540(c).

D. Field Office (FO), Regional Office (RO), or referring office’s responsibilities after a representative is suspended or disqualified

1. Notifying the suspended or disqualified individual’s claimants, beneficiaries, or recipients

When the decision to suspend or disqualify a representative is final and entered into the Registration, Appointment and Services (RASR) application, RASR will automatically terminate all appointments and will send the claimant an automated notice of the termination if any of the appointed representatives are sanctioned (see RASR User Guide). When the suspended or disqualified individual is the principal appointed representative, RASR will also:

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    Communicate new and updated appointed representative information to downstream applications (e.g., MCS, MSSICS, EDCS); and

  • •

    Automatically notify the electronic folder (EF) of appointment changes. This notification will also notify Disability Determination Services (DDS) systems.

FO staff will review the RASR query Appointments Terminated Due to AR Sanctions List (see MS 09106.003) to determine whether there are any claimants or beneficiaries with pending claims who have not been notified of the sanction and provide the appropriate notice (GN 03970.065). Staff must also ensure that the Master Beneficiary Record (MBR) and the Supplemental Security Record (SSR) are annotated with the appropriate special message explaining the reason for the termination. For any further guidance, staff will consult with OGC using the contact information in GN 03970.070.

2. Suspended or disqualified individual attempts or continues to act as a representative

If a suspended or disqualified individual attempts to act as a representative by providing representational services, the employee who learns of this attempt must notify their supervisor and take the following actions:

  1. a. 

    Document the representative's actions (i.e., make copies of all letters or other documents that show the sanctioned individual’s attempts to act as a representative).

  2. b. 

    Notify the claimant and other parties as needed in the following situations:

    • •

      Individual continues to act as a representative

      Use Document Processing System (DPS) or Manage Text (AURORA) and the sample language in GN 03970.065A. to notify the claimant of the individual’s suspension or disqualification. Address the letter to the claimant with a copy to the sanctioned individual.

    • •

      Individual acts as the assistant to another appointed representative

      If the sanctioned individual acts as the assistant to another appointed representative and contacts us on behalf of a claimant or the employing representative, inform the claimant that we will not communicate with or accept correspondence from the sanctioned individual. In DPS or AURORA, use the sample language in GN 03970.065B. to notify the claimant of the individual’s suspension or disqualification. Address the letter to the claimant and send copies to the sanctioned individual and the appointed representative.

    • •

      Individual provides representational services through their employee

      If the sanctioned individual is employing another individual to provide representational services to a claimant and the claimant appointed the employee to be their representative, use the sample language in GN 03970.065C. Notify the claimant of the employing individual’s suspension or disqualification and inform the claimant that the sanctioned individual cannot indirectly provide representational services to the claimant or indirectly collect a fee. Also, advise the claimant that the representative who is not sanctioned can continue to represent the claimant unless OGC takes an action against that representative. Address the letter to the claimant and send copies to the sanctioned individual and the claimant’s appointed representative (i.e., the employee of the sanctioned representative).

      Notify OGC of the sanctioned individual’s continued activity by forwarding all documentation of the sanctioned individual’s representation attempts and notices sent to the claimant to OGC by email using the contact information in GN 03970.070.

3. Suspended or disqualified individual insists on recognition by us

If the suspended or disqualified individual insists that we recognize them as the representative in a case, OGC will advise the individual that we can neither recognize nor deal with them. In addition, OGC will refer the matter to the Office of the Inspector General. See information on detecting and developing program violations in GN 04110.000.

NOTE: Refer questions regarding this section to OGC using the contact information in GN 03970.070.

4. Suspended or disqualified individual is serving as a POC at the time their sanction becomes effective

If the suspended or disqualified individual is serving as an entity POC at the time their sanction becomes effective, their entity becomes ineligible to receive direct payment unless and until the entity designates a new POC (see GN 03920.021 and GN 03970.060A.1 in this section). When OGC sanctions an individual, OGC notifies the Center for Programs Support (CPS) in the RO where the individual is located. If CPS staff determine that the sanctioned individual is serving as an entity POC, CPS staff will immediately refer the matter to the ineligible for direct payment entity (IDPE) coordinators and send notice to the entity about its ineligibility using DPS or AURORA and the sample language in GN 03970.065E. If the individual sanctioned is not acting as a POC at the time their sanction becomes effective (e.g., the entity properly named a new POC) these additional steps are not necessary because the entity remains eligible for direct payment.

E. References

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    GN 03910.020 Qualifications for and Recognition of Representatives

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    GN 03910.025 Authority of Appointed Representatives

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    GN 03910.060 When a Representative's Appointment Ends

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    GN 03920.005 Representative's Fees Subject to SSA's Authorization

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    GN 03940.003 Fee Agreement Evaluation

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    GN 03970.065 Field Office's Sample Notices of Suspension or Disqualification

 

To Link to this section - Use this URL:
http://policy.ssa.gov/poms.nsf/lnx/0203970060
GN 03970.060 - Field Office and Regional Office Action When a Representative is Suspended or Disqualified - 10/08/2024
Batch run: 12/18/2024
Rev:10/08/2024