The entity must have an EIN so that we can report the income to the Internal Revenue Service as required by law. The EIN also allows our technicians to verify entity-related information using the Registration, Appointment, and Services for Representatives (RASR) application.

The entity must register by completing and submitting a Form SSA-1694 before we can process a representative’s request to assign direct payment of their fee to that entity. If a representative submits a Form SSA-1696 with a request to assign direct payment of their fee to an entity, and the entity has not registered with us, we will continue to process the notice of appointment, but we will not process the assignment request. In this situation, we will notify the representative that we cannot process the assignment request, and that unless the representative submits an updated Form SSA-1696 with a valid assignment, we will directly pay any fee we authorize to the representative from available past-due benefits. For more information on the Notice of Failed Assignment, see GN 03905.036.

For more information on entity registration, see GN 03913.050.

In order for us to effectively communicate with an entity and resolve matters related to the direct payment of representative fees to that entity, we require each entity to designate one individual to serve as their POC. The POC must be registered with us as a representative prior to being designated by the entity, and the entity must keep the POC’s information current and promptly notify us of any changes. To ensure that the POC’s information is accurately reflected in our systems, we require entities to use the Form SSA-1694 when designating or updating information related to their POC.

For additional information on the role and responsibilities of POC's, see GN 03920.021C, below.

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

To receive direct payment of an authorized fee, an entity must have a bank account that accepts EFTs and must provide that account information when registering with us using Form SSA-1694. We will not directly pay an entity by check, cash, or any method other than by EFT.

To receive direct payment of an authorized fee, an entity must not be deemed ineligible for direct payment due to violating our rules. We maintain an Ineligible for Direct Payment Entity (IDPE) list of entities who are not eligible for direct payment because they have not timely resolved a fee matter or other issue restricting their eligibility for direct payment. For example, if an entity receives excess fees and, regardless of fault, does not remit the excess after we have notified them of the issues, the entity may be placed on the IDPE list. The IDPE list contains information on registered entities that are not currently eligible for direct payment. When an entity is on the IDPE list at the time we process a representative’s assignment request, we will not recognize the assignment, but we will process an otherwise valid appointment. We will notify the representative that we cannot accept and process the assignment. Similarly, when an entity is on the IDPE list at the time we certify direct payment, we will not certify direct payment to the entity. Instead, we will pay the representative directly unless they too have become ineligible for direct payment. The rejection of an assignment will not affect the representative’s own eligibility for direct payment.

For more information on excess fee payments to entities, see GN 03920.051.

For more information on the IDPE list, see GN 03920.052.

A representative who wishes to assign direct payment of an authorized fee to an affiliated entity must submit an assignment request before the date we notify the claimant of our first favorable determination or decision. An assignment request must be made on Section 5 of the Form SSA-1696 either at the time of the appointment or by submitting an updated Form 1696 at any time before we notify the claimant of the first favorable determination or decision. To make an assignment, a representative must include the following information:

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  The claimant’s name and Social Security number;

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  The representative’s name and Rep ID;

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  The entity’s name and EIN (In Section 5, Part B (Representative’s Affiliation Information);

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  Selection of the appropriate box in Section 5, Part C (Direct Payment of Authorized Fee to an Entity); and

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  The representative’s signature and date (in Section 8).

If the technician identifies an assignment request, they will process the assignment in RASR by choosing the EIN of the entity listed on the appointment notice and selecting the "entity direct payment" checkbox within RASR. If the EIN provided on the appointment notice is invalid or we cannot process the assignment request, see GN 03910.040F.4.

When a Form SSA-1696 contains both an appointment notice and an assignment request, and for any reason the assignment request cannot be processed, the technician will continue processing the appointment and will notify the representative of the failed assignment. For sample notice language used when an assignment has failed, see GN 03905.036.

If an entity is not registered with us when a representative submits an assignment request, we cannot process the assignment request. If the representative is eligible for direct payment at the time we certify payment, we will directly pay the authorized fee to the representative.

For general information about the processing the Form SSA-1696, see GN 03910.040.

We will accept a representative's request to rescind an existing assignment if we receive it before the date we notify the claimant of the first favorable determination or decision in their case. If the rescission is not making a new assignment, they must check the "Rescission of prior Assignment" box and include the following information :

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  The claimant's name and SSN;

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  The representative's name and Rep ID; and

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  The representative's signature and date.

 

Upon receiving a representative’s request to rescind an existing assignment, technicians must:

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  Ensure that the request includes the information listed in GN 03920.021B.4.a. above;

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  Identify the date the request was received; and

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  Check the appropriate claims file to determine whether a determination or decision has been issued.

If the request contains all the required information listed above, was received timely, and there are no errors, inconsistencies, or other issues preventing us from processing the rescission, the technicians will process the rescission request and update the RASR application to indicate a rescission of assignment.

If the rescission request does not meet the above requirements, technicians will not process the rescission request and will inform the representative that we are unable to process the rescission request, and that unless the representative submits a rescission request that meets the above requirements, the previously established assignment will remain in effect.

Technicians must use the following dictated language:

“We received your request to rescind your assignment but are unable to process your request because it is incomplete, contains incorrect information, or was untimely. The most recent valid assignment remains in effect. Unless we receive a valid rescission request, we will pay your authorized fee to [Entity Name] in accordance with agency policy. To be valid, a rescission request must meet the requirements explained in GN 03920.021B.4.a, and we must receive it before the date we notify the claimant of our first favorable determination or decision.

If you are rescinding a prior assignment without making a new one, you must submit an updated, current version of Form SSA-1696 with the claimant’s name and SSN, the representative’s name and RepID, the “rescission of prior assignment” box checked (in section 5, Part C), and the representative’s signature and date.

If you are rescinding a prior assignment by making a new one, you must submit an updated, current version of Form SSA-1696 with the claimant’s name and SSN, the representative’s name and RepID, the new entity’s name and EIN (in section 5, Part B), the “assignment” box checked (in section 5, Part C), and the representative’s signature and date.”

To ensure accurate payment to the correct entity, the POC will maintain up-to-date information for the entity. This includes keeping the contact information for the entity and POC current. The POC is also responsible for maintaining and reporting changes to banking details required to receive EFT payment.

The POC is responsible for assisting us in resolving fee related matters related to the direct payment of a representative’s fee to the POC’s entity. Examples include:

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  Excess or erroneous fees paid to the entity.

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  The entity’s non-receipt of direct payment of a certified fee.

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  Incorrect tax information appearing on the Form IRS-1099 Miscellaneous Information.

The POC is only responsible for matters related to the direct payment of a fee. A POC is not responsible for issues involving the fee itself, including the amount of fees awarded or the decision to request administrative review of a fee authorization, unless a deceased representative validly assigned direct payment of a fee. Those issues remain the responsibility of the appointed representative who is seeking the fee. Unless the POC is also the appointed representative in a case or a deceased representative validly assigned direct payment of the fee, the POC’s role is limited to fee related matters that arise after the authorized fee has been certified.

EXCEPTION: If the limited circumstances described in GN 03930.020A apply, a POC may file a fee petition, submit a request for administrative review, and respond to the requests for administrative review received by other parties in the place of the appointed representative (see also GN 03950.001C).

The POC must ensure that the entity remits any fees that were erroneously paid to the entity, including excess fees, regardless of fault. We will work with the POC to resolve fee related matters; however, we will not hold the POC financially responsible for excess fees paid to the entity.

For more information on excess or erroneous fee payments paid to an entity, see GN 03920.051.

As described in GN 03920.051, when excess fee payments are made to an entity, we will pursue recovery of excess fee payments and work with the POC to resolve any fee related matter involved. When requested, to resolve fee-related matters, the POC will provide essential documents including, but not limited to, bank statements, EFT deposit verifications, or remittance payment receipts.