Effective Dates: 2/09/2023 - Present

Identification Number:
GN 03913 TN 9
Intended Audience:See Transmittal Sheet
Originating Office:ORDP ODP
Title:Individual Registration for Appointed Representative Services and Direct Payment of Fees
Type:POMS Full Transmittals
Program:All Programs
Link To Reference:
 

PROGRAM OPERATIONS MANUAL SYSTEM

Part GN – General

Chapter 039 – Representation and Representative's Fee

Subchapter 13 – Individual Registration for Appointed Representative Services and Direct Payment of Fees

Transmittal No. 9, 02/09/2023

Audience

PSC: BA, CA, CS, DE, DEC, DS, ICDS, IES, ILPDS, IPDS, ISRA, PETE, RECONR, SCPS, TSA, TST;
OCO-OEIO: BIES, CAQCR, CR, PETL, RECONR, RECOVR;
OCO-ODO: BTE, CR, CST, CTE, CTE TE, DS, PETE, PETL, RECOVR, RECOVTA;
ODD-DDS: DHU;
FO/TSC: CS, CS TII, CS TXVI, CSR, CTE, FR, OA, OS, RR, TA, TSC-CSR;

Originating Component

ODP

Effective Date

Upon Receipt

Background

The Business Services Online(BSO) ATFEE1694 internet application which allows for the Request for Business Entity Taxpayer Information form (SSA-1694) to be submitted electronically was decommissioned in October 2022. Due to this, we removed instructions for electronic submission of the SSA-1694.

 

Summary of Changes

GN 03913.050 Form SSA-1694 and Registration of Business Entities

Subsection A. Updated the title of the section to ensure that section titles provide value to readers.

Subsection B. Updated the title of the section to ensure that section titles provide value to readers. Additional information added to the end of this section to encourage business entities/employers or representatives submitting the SSA-1694 to ensure that the form is accurate and completed in its entirety to assist with quick and timely processing.

Subsection C: Deleted subsection C which provides instructions for pin and password access to Business Services Online (BSO).

Subsection D: Deleted subsection D which provides instructions for submitting the SSA-1694 electronically.

Subsection C: Added a new section titled Form SSA-1694 to add content to further specify that form SSA-1694 is a paper form. Updated the title of the section to ensure that section titles provide value to readers. Includes information on where business entities/employers or representatives can obtain the form and how they should submit the form. New information in this subsection was borrowed and tweaked from the instructions in the revised SSA-1694, which also states that the preferred method of submission is by faxing the completed document to OEIO.

Subsection E: Now subsection D due to removing other sections. Updated title of the section to refer to the general process instead of just the ‘paper process’. Information in this section now makes it clear that the FO should fax the SSA-1694 to OEIO, AFTER taking initial action for additional processing. Instructions in this section also informs OEIO that all actions necessary for processing the SSA-1694 received via fax should be performed by technicians in OEIO. We also removed additional information in this section that insinuates the existence of an online process.

GN 03913.050 Form SSA-1694 and Registration of Business Entities

A. Direct Fee Payment Reporting

Internal Revenue Service (IRS) regulations require us to report when we directly pay fees of $600 or more to a representative in a calendar year.

Effective 2021 (for tax year 2020), we report these payments on Form IRS 1099-MISC (Miscellaneous Income) for representatives who receive fees for work as employees of business entities, and Form IRS 1099-NEC (Nonemployee Compensation) for representatives who operate as sole proprietors or representatives affiliated with employers who are not registered with us. In years prior to 2020, we used the 1099-MISC to report fees we directly paid to both entity employees and sole proprietors.

To help representatives and their employers reconcile financial accounts for tax purposes, representatives can use the Form 1099-MISC they receive as employees or affiliates of a registered entity.

B. Annual Reporting - IRS Forms 1099-MISC and 1099-NEC

Representatives may affiliate with and work for multiple firms or business entities concurrently. If representatives want to receive statements reporting only the fees received directly as employees of an entity, the entity must register with us using Form SSA-1694 (Request for Business Entity Taxpayer Information).

When an entity successfully registers with us, we will send Form 1099-MISC on an annual basis to employees affiliated with an entity who registered using the SSA-1694. We will send Form 1099-NEC on an annual basis to representatives recognized in our records as sole proprietors or representatives affiliated with entities who are not registered with us. Both the 1099-MISC and the 1099-NEC will summarize direct payments of $600 or more that we made to representatives for services rendered in the previous tax year.

The business entity, or a representative affiliated with the entity, may take action to submit a completed SSA-1694. To ensure quick and timely processing of the SSA-1694, the information on the form should be accurate and completed in its entirety.

C. How to Complete Form SSA-1694

The SSA-1694 is a paper form. A fillable PDF version of the form is available here: Form SSA-1694.

Business entities or representatives may submit the SSA-1694 to the Office of Earnings and International Operations (OEIO) by faxing the completed form to 1-877-268-3827, which is the preferred method for faster processing.

The SSA-1694 can also be submitted by mail or hand delivered the SSA-1694 to the local Social Security office. Employers/business entities or representatives can identify the address for their local Social Security office by using Social Security’s Office locator accessible at https://www.ssa.gov/locator/ (by clicking the “Locate An Office By Zip” button), or by calling us at 1-800-772-1213.

D. How to Handle Form SSA-1694

If Form SSA-1694, is received in the FO, the FO technician should review the form for completeness. If the form is complete:

  • •

    Enter the entity’s information in the Firm Tax (FRMT) screen in RASR (see MS 09105.001), and then

  • •

    Fax the SSA-1694 to the Office of Earnings and International Operations (OEIO) at 1-877-268-3827 for additional processing.

When the SSA-1694 is received in OEIO via fax, all actions are taken from start to finish by the OEIO staff.

If the form is incomplete or illegible, attempt to reach the representative by telephone and request the missing information. Record the contact attempt on the Report of Contact (ROCD) screen in RASR. If phone contact is unsuccessful, mark the form “Incomplete – Return Unprocessed” and return it by mail to the representative along with a completed Form SSA-4903-OP1.

GN 03913 TN 9 - Individual Registration for Appointed Representative Services and Direct Payment of Fees - 2/09/2023