Unless an exception exists, the entire first check is usually paid to a State/political subdivision that is authorized to receive it as IAR, (see SI 02101.004A.2.), subject only to having an overpayment from another period recovered by adjustment and any prior emergency advance payment, immediate payment, and presumptive disability/blindness payment subtracted.

IAR takes priority over issuance of an underpayment to a survivor.

The first check is not paid to the State/political subdivision when the underpayment meets the criteria for payment of an authorized representative for direct fee payment, payment into a dedicated account or the amount must be paid in installments. The State is sent an SSA-L8125 requesting the amount SSA owes the State. When the SSA-L8125 is received, the FO issues an A-OTP for reimbursement to the State for IAR. See SI 02101.010 for dedicated accounts and SI 02101.020 for installments. See GN 03920.017 on payment of a representative’s fee, GN 03930.032 on releasing past due benefits in title XVI fee petition cases, and/or GN 03940.050 for FO processing of fee agreements in favorable title XVI cases.

There is no time limit to the underpayment amount we can pay as IAR.