Effective Dates: 9/30/2024 - Present

Identification Number:
GN 03913 TN 14
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. 14, 09/30/2024

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

On July 16, 2021, the United States Court of Appeals for the First Circuit issued a decision in Marasco & Nesselbush, LLP v. Tara Collins and Social Security Administration, instructing us to implement “a reasonably reliable means for law firms to obtain directly from claimants’ past-due benefits the fee payments." The First Circuit further directed us to develop a process to pay a firm directly, consistent with the statutory limit and other applicable rules, when fees are authorized to the firm’s employee for services the employee performed before us.

Eligible appointed representatives will be able to assign the direct payment of authorized fees to an eligible entity that they are affiliated with through assignment. Entities will be assigned direct payment of fees by representatives when the representative selects the assignment box on the update form SSA-1696. In addition, the Form SSA-1696 will be mandatory and require signatures from all parties.

This transmittal updates POMS for consistency with the phase 1 implementation of that final rule to occur on September 30, 2024. The regulation establishes a process for representatives to assign direct payment of fees to entities. The changes to this section are part of several changes to our subregulatory guidance to help implement this regulation. We updated this section in preparation for the implementation of changes with the Marasco regulation, which allows appointed representatives to assign direct payment of their fees to entities that employ them.

Summary of Changes

GN 03913.010 Updates to Representative Registration

Subsection A. Representative Registration

  • •

    We updated information in this subsection to provide updated background information on the registration requirements.

Subsection B. Registration update process

  • •

    We changed information in this subsection to reflect instructions for changing affiliations and direct payment assignments to entities.

Subsection C. Affiliations - special instructions

  • •

    We updated information in this subsection to provide special instructions for processing affiliations.

Subsection D. Name Changes - special instructions

  • •

    We created this subsection to provide special instructions on processing representative name changes.

Subsection E. Corrections to Forms 1099-MISC and 1099-NEC

  • •

    We created this subsection to provide information on making corrections to Forms 1099-MISC and 1099-NEC.

Subsection F. Process for updating a deceased representative’s registration information to facilitate direct payment

  • •

    We created this subsection to provide information for updating a deceased representative’s registration information to facilitate direct payment.

GN 03913.010 Updates to Registration

A. Representative Registration

Registration information, such as a representative’s name, business address, and affiliations, is centrally stored in the Registration, Appointment, and Services for Representatives (RASR) application. Representatives must keep their registration information current. Failure to do so may result in fee delays, incorrect or missing payments, interrupted access to our electronic services and written communications, and errors on Forms IRS 1099-Miscellaneous Income (MISC) or 1099-Nonemployee Compensation (NEC).

B. Registration update process

A representative may update their registration information by submitting a Form SSA-1699, Representative Registration, to the Office of Central Operations, Office of Earnings & International Operations Division of Earnings and Business Services (DEBS). We strongly prefer individuals fax the form to 1-877-268-3827. In addition to updating any information that has changed, the representative must complete the following parts:

  • •

    Name and Rep ID;

  • •

    Sections VI and VII (Attestations) in full; and

  • •

    Signature and date under Perjury Statement.

To ensure proper processing of registration information, individuals should submit the entire Form SSA-1699, even when updating information on only part of the form.  

NOTES:

  • •

    We do not update registration information based on phone calls, emails, or other correspondence. A representative must personally complete, sign, and submit a Form SSA-1699 to update their registration information.

  • •

    If an individual serves as both an appointed representative and a POC, they must submit both Forms SSA-1699 and SSA-1694 in order to update their personal information.

  • •

    Individuals with no fax access can mail their registration forms to us at: Social Security Administration, Office of Central Operations, Division of Earnings and Business Services 6100 Wabash Avenue, Baltimore, MD 21215.

  • •

    Representatives who have questions or encounter problems during registration may contact the OCO/DEBS at 1-800-772-6270 (TTY: 1-800-325-0778).

IMPORTANT: When technicians discover administrative errors related to registration, technicians should call the OCO/DEBS at 1-800-772-6270 (TTY: 1-800-325-0778).

C. Affiliations - special instructions

Representatives who affiliate with multiple entities must submit the entire Form SSA-1699, even when updating information on only part of the form and complete and submit a separate Section V of Form SSA-1699 for each additional entity with which they wish to affiliate. We can only process a representative’s request to affiliate with an entity in a specific claim or to assign direct payment of the representative’s fee to the entity (both made using a Form SSA-1696) if the representative has previously submitted a Form SSA-1699 adding the entity as an affiliation.

IMPORTANT: If a representative has affiliated with an entity and has assigned the right to receive direct payment of an authorized fee on a given claim to that entity, we will use the entity’s banking information provided on the Form SSA-1694 to directly pay that fee.

For more information on the Form SSA-1694, see GN 03913.050.

1. New affiliation

Submit a new Form SSA-1699 to DEBS as described in GN 03913.010B. An EIN change considered is a new affiliation.  The appointed representative will need to submit an updated Section 5 of Form SSA-1696 in any pending claim in which the representative wants to affiliate with the new EIN.

2. Updating affiliation-related information

To update a representative’s information about an existing affiliation (i.e., any information contained in Section V of the Form SSA-1699, other than the EIN), the representative must submit an updated Form SSA-1699 to DEBS as described in GN 03913.010B. Once DEBS has processed the form, RASR automatically updates the affiliation-related information in related pending claims, and there is no need to submit a Form SSA-1696 for these claims.

3.  Ending affiliations

A representative who wants to end their affiliation with an entity must submit a Form SSA-1699 reflecting all current and new entity affiliations and omitting the EIN information for the entity they want to disaffiliate from, along with a fax cover sheet explaining what has changed (e.g., which entity information is new and if they are disaffiliating from an entity). On the fax cover sheet, the representative must identify the entity they want to disaffiliate from and state, in writing, that the affiliation has ended.

Ending an affiliation terminates the link between the representative and the entity. Once the affiliation is terminated in RASR, the representative is unable to affiliate with the entity in new appointments, and the affiliation will not be recognized on any pending appointments. 

IMPORTANT:  A representative may not end an affiliation with an entity if there are any pending claims with active fee assignments made to that entity.  A representative may submit an updated Section V of the SSA-1696 to rescind an assignment of payment to an entity or to change or end an affiliation in a claim.

For more information on assignment of the right to receive direct payment of a representative’s fee to an entity, see GN 03920.021. For more information on Form IRS-1099 when an affiliation ends, see GN 03913.050.

4. Affiliations, changes in affiliations, and direct payment assignments to entities

A representative who affiliates with an entity in a particular case, claim, post-entitlement issue, or other matter may also assign direct payment of any fees we authorize to them for their representational services in that particular matter to the entity. A representative can only assign direct payment of fees to an entity with which they have affiliated in the particular case.

For more information on assignment of direct payment to an entity, see GN 03920.021.

D. Name Changes - special instructions

Before we can process a name change in RASR, the name must be updated on the NUMIDENT. A representative may initiate a name change on their Numident by submitting the required forms and evidence to their own servicing FO as explained in GN 03910.060G.1. For information on legal names and changes to the Numident, see RM 10212.000.  

After a representative’s name is updated in the Numident, the representative must file a new Form SSA-1699. DEBS will process Form SSA-1699 and update the representative’s registration information according to the instructions in GN 03913.012D.

EXAMPLE: Aristotle Sharma, who serves as the POC for “Disability Star Company,” changes their given name to Sophia Sharma. To enable us to recognize Sophia’s name change, Sophia first visits an FO to have their name changed on the Numident. After the Numident has been updated, Sophia then faxes a Form SSA-1699 to the DEBS, who then updates Sophia’s personal information in RASR. Finally, because Sophia is the POC for Disability Star Company, they must also file a Form SSA-1694 to update the POC information for the entity.

E. Corrections to Forms 1099-MISC and 1099-NEC

The IRS requires us to issue Forms 1099-MISC or 1099-NEC when we directly pay fees totaling $600 or more in a calendar year. We issue forms reporting income for the prior calendar year beginning in January of the current calendar year.

For more information about forms 1099-MISC and 1099-NEC, see GN 03913.001 and GN 03913.050.

NOTES:

  • •

    A representative or POC with questions about Forms 1099-MISC or 1099-NEC can call the Representative Call Center (RCC) at 1-800-626-6363.

  • •

    We no longer provide a list of cases with the 1099-MISC or 1099-NEC.

1. Updating tax documents received by representatives

A representative who has affiliated with a registered entity will receive a Form 1099-MISC documenting the amount of fees directly paid for representational services provided before SSA in claims for which the representative affiliated with that entity using Form SSA-1696, regardless of whether the representative assigned the fee to the entity. A representative will receive a Form 1099-NEC if the representative had not affiliated with an entity or had affiliated with an unregistered entity. Because a representative’s fee arrangement may differ from case to case, a representative may receive one or both of these forms in a single calendar year.

As noted above, the representative must update their personal information and affiliations. We only correct a Form 1099-MISC or 1099-NEC to account for the following: 

  • •

    Name or address changes;

  • •

    Remittances of payments made in the same calendar year but not properly posted; or

  • •

    Non-receipt of fees posted to the Form 1099-MISC or 1099-NEC.

We issue corrected statements in the same format (i.e., form number and edition) as we used for the original statement.

We will not correct a 1099-MISC or 1099-NEC to reflect remittances of payments made and properly posted before the calendar year in which the remittances were made, errors due to incorrect affiliations, or any other errors that occur due to a representative’s failure to update personal information timely (i.e., within the pertinent calendar year). In such instances, the representative must contact the IRS or their employer to initiate corrections.

EXAMPLE: Representative Jaiyden Bosch calls in June 2020 to request that we correct the tax year 2019 IRS 1099-MISC to reflect the remittance of a payment. We would fulfill the request if we issued the payment in question on January 2, 2019. We would not fulfill the request if we issued the payment on December 30, 2018.

IMPORTANT: Information on the 1099-MISC and 1099-NEC is protected Personally Identifiable Information (PII). When responding to an inquiry from a representative or an entity regarding the 1099-MISC or 1099-NEC, technicians must follow disclosure policy in GN 03300.000.

2. Updating tax documents received by entities

A registered entity will receive a Form 1099-NEC when we directly pay more than $600 for services performed by an affiliated representative, whether or not those fees were paid to the representative or were assigned to the entity.

We will not send a Form 1099-MISC to a registered entity. An unregistered entity will not receive any tax forms from us.

When we receive a request to update a Form 1099 sent to an entity, we will apply the same policy explained in section GN 03913.010C.1., above. However, it is important to note that we will only communicate with the entity's POC. For more information on communicating with disclosing information to entity POCs, see GN 03920.021.

F. Process for updating a deceased representative’s registration information to facilitate direct payment

When a representative properly and timely assigns direct payment of fees to an affiliated entity prior to their death, we pay any fees we authorize to the entity, unless the entity is no longer eligible to receive direct payment of assigned fees, or the representative became ineligible for direct payment after making the assignment but before death.

If a representative who was eligible for direct payment dies without having assigned the right to direct payment of an authorized fee to an entity, or if the representative made an assignment that later became invalid, we may directly pay the representative’s estate any fee we authorize for the services that the representative has provided.

In order to authorize and directly pay a fee to a representative’s estate, the executor or legal representative of the estate must complete and submit a Form SSA-1699 on behalf of the deceased representative, updating the representative’s registration information to include the executor’s information.

NOTE:  When an executor or legal representative of the estate submits a Form SSA-1699 on behalf of a deceased representative, we update the deceased representative’s information in RASR. We will not establish a new appointment using the executor or legal representative’s information. This process does not register the executor or legal representative as a representative. When the executor or legal representative is already registered as a representative, this process does not impact their own registration information.

For more information on authorizing fees when a representative dies, see GN 03940.003 (fee agreements) and GN 03930.020 (fee petitions). For more information on direct payment of authorized fees when a representative has died, see GN 03920.016E.

1. Identifying the executor or legal representative of a deceased representative's estate

Before we issue payment to the estate of a deceased representative, we must first develop for the identity and address of the executor (or other individual recognized by the State as the representative of the estate).

NOTE: We do not initiate development until 60 days after the representative's death. If technicians learn of a representative's death after we have already authorized a fee and 60 days have not yet elapsed, technicians must set a diary for the 61st day following the date of death and develop upon maturity.

For instructions on identifying the executor or legal representative of a deceased representative’s estate, technicians should see related instructions for this section. After identifying the executor or legal representative, the technician contacts them with instructions to complete and fax a Form SSA-1699 on behalf of the deceased representative to DEBS at 1-877-268-3827. The technician then sets a 15-day diary to check whether DEBS processed the registration in the RASR application and sets 5-day follow-up diaries as needed.

Once the deceased representative’s information is updated, proceed to GN 03913.010F.2.

2. Releasing fees to a representative's estate

After DEBS updates a deceased representative's information in RASR, technicians will certify direct payment of the fee following existing procedures.

See GN 03940.009B for information on how we process authorized fees in cases with a valid fee agreement after a representative dies, and GN 03930.020C.6. for cases where a representative dies before filing a fee petition.

3. Attempts to develop for an estate are unsuccessful

We may release to the claimant all benefits withheld to pay the deceased representative, if:

  • •

    All development attempts are unsuccessful, or

  • •

    Both the information on Form SSA-1699 does not match the court’s records, and

  • •

    There are no other appointed representatives with pending fee authorizations.

Update the representative’s appointment information in RASR with a report of contact noting that all development efforts were exhausted.

Prepare a notice to inform the claimant that we released all withheld benefits to the claimant because we were unable to verify the estate of the deceased representative. Inform the claimant that the payment of the fee is now a matter between them and the estate of the deceased representative.

The following is suggested notice language to add to the beneficiary notice:

We made several attempts to identify the executor of the estate for your deceased representative. We were unable to identify the executor of the estate. Due to this, we are releasing the benefits previously withheld to pay the representative directly to you. Since we are unable to verify the executor information for the estate, payment of any authorized fee is a matter between you and the estate of the deceased representative.

NOTE: Never send a copy of an award notice or any other beneficiary letters to a deceased representative’s estate.

4. Unverified estate information in RASR

When a technician determines that RASR contains information for a deceased representative’s estate, but there is no evidence or documentation in other systems indicating that we developed for this information, technicians must follow the instructions in GN 03913.010E.1. above to confirm the information, and document all contact attempts.


GN 03913 TN 14 - Individual Registration for Appointed Representative Services and Direct Payment of Fees - 9/30/2024