TN 9 (11-09)

A. Policy for issuance of Form 1099-MISC and registration for employers

1. Representative

Internal Revenue Services regulations require that SSA issue Forms 1099-MISC to representatives who receive, by direct payment from SSA, fees of $600 or more in a calendar year. To comply with this requirement, an appointed representative who:

• is an attorney or a non-attorney eligible for direct fee payment (EDPNA) (see GN 03920.018);

• is appointed to represent the claimant on or after January 1, 2007 (i.e., the claimant signs the appointment on or after January 1, 2007); and

• has not waived a fee or direct fee payment (see GN 03920.017),

must provide SSA the information required to issue a Form 1099-MISC before SSA effectuates a favorable decision that yields past-due benefits. If the representative does not register timely, SSA will not withhold past-due benefits for direct fee payment. Representatives must provide the necessary information by submitting the required forms SSA-1699 and SSA-1695. SSA maintains this information in the Appointed Representative Database (ARDB).

NOTE 1: For policy and procedure regarding the new Form SSA-1699 and registration for representatives, see section GN 03913.000.

NOTE 2: If a claimant signs the notice appointing an attorney or non-attorney who is eligible to receive direct fee payment (see GN 03920.018), to represent him or her before January 1, 2007, SSA does not require the representative to register in order for SSA to pay a fee directly to the representative. (See GN 03920.017 Payment of Representative’s Fee.)

2. Submitting Form SSA-1695

In order to link a claimant to an appointed representative on the ARDB, the representative must submit a Form SSA-1695 with each claim. The information from a Form SSA-1695, submitted in connection with a Title II and/or Title XVI claim, and the appointment document is entered through the Payment Outside Title II System (POTS) and passed to the claim system that is processing the claim. If the Form SSA-1695 is received with the appointment of representative and the link is established before the representative’s address, etc., is keyed into the claim system, that information will propagate from the ARDB to the claim record, and thus eliminate manual keying.

If address information manually entered into the claim system differs from the information on the ARDB, the information on the ARDB will overlay what was entered manually into the claim system.

Complete Form SSA-1695 (Identifying Information for Possible Direct Payment of Authorized Fees) – The representative must submit this paper form in connection with each claimant he or she represents. SSA uses this information to establish a link between the claimant and the representative on the ARDB. This link enables the information on the ARDB to propagate to the Title II and/or Titles XVI claims record. Because each link is established separately, when multiple representatives are appointed concurrently in one claim, SSA must secure a separate SSA-1695 from each co-representative who is eligible to receive, and who is or will be requesting direct payment, even when all co-representatives are members of the same firm. The form asks for the following information (see GN 03910.090 for the form):

1. Name of Claimant and SSN.

2. Wage earner’s (w/e) name if different and w/e SSN if different.

3. Representative’s name, SSN, address, phone number, and FAX number.

4. EIN, if represent claimant as a partner or employee of firm or other business entity.

5. Information about other claimants connected with this claim (optional).

NOTE: Once you have successfully entered Form SSA-1695, Identifying Information for Possible Direct Payment of Authorized Fees, send the acknowledgement notice to the appointed representative. This notice must be sent. (See DPS (Document Processing System) or GN 03910.090 for an exhibit of the notice.)

3. Employer

A firm or other entity may register with SSA, as described below, to receive a Form 1099-MISC. The form includes the total fees SSA paid to each representative associated with the entity, during a calendar year. The individual representatives associated themselves with the entity at the time they submitted Form SSA-1695. If a representative is submitting an SSA-1694 on behalf of his or her employer, the representative must provide the following information:

1. EIN;

2. Name of business entity; and

3. Tax mailing address.

NOTE: SSA recognizes and pays fees directly only to individual representatives, not entities. A representative who is no longer affiliated with an entity must complete and submit an updated SSA-1699, and a new SSA-1695 for each pending case where the representative provided representational services while affiliated with that entity. To avoid delays or incorrect payments and to ensure an accurate Form 1099-MISC, SSA records must reflect the representative’s current address and affiliations.

In those cases where the representative is waiving the fee or direct payment of the authorized fee an SSA-1695 is not necessary.

B. Procedure when representative submits registration forms

If the representative submits a Form SSA-1699 and/or SSA-1694 or a Form SSA-1695 to the FO or PC, act on the form as follows:

1. Forms SSA-1699 (Registration for Appointed Representative Services and Direct Payment) and SSA-1694 (Request For Business Entity Taxpayer Information)

If the representative submits the Form SSA-1699 to the FO, follow procedure in GN 03913.000. If the representative submits Form SSA-1694:

• Input the representative's information into the ARDB following the procedures in MSOM INTRANETARDB 001.002 through MSOM INTRANETARDB 001.004, and

• After the data entry, mail the paper form to:

  Social Security Administration
  Office of Finance
  P.O. Box 17042
  Baltimore, MD 21235-7042

2. Form SSA-1695 (Identifying Information for Possible Direct Payment of Authorized Fees) received, information is complete and representative is on the ARDB

To establish the link on the ARDB between the appointed representative and the claimant, enter the information provided by the representative on Forms SSA-1695 and SSA-1696 through the Payments Outside Title II System (POTS). Secure a new SSA-1695 for each new claim and establish a new link in POTS following the procedures in MSOM SPECPAYSYS.

NOTE 1: If the claimant appoints the representative after January 1, 2007, the representative on the ARDB and the claimant must be linked before SSA effectuates a favorable decision in order for SSA to withhold the claimant’s past-due benefits for direct fee payment.

3. Form SSA-1695 received and representative is not on the ARDB

If the representative submits a Form SSA-1695, but the representative is not on the ARDB, determine if the representative is an attorney or an EDPNA (see GN 03920.018).

If the representative is an attorney or an EDPNA:

• Return the Form SSA-1695 to the representative,

• Advise the representative that he or she must complete a Form SSA-1699. For policy and procedure, see GN 03913.000. Form SSA-1699 is also available through the Social Security Online “Representing Claimants” website: http://www.socialsecurity.gov/representation/ , and

• Advise the representative to return Form SSA-1695 once he or she receives confirmation of registration and Rep ID following procedure in GN 03913.000.

If the representative is a non-attorney who is not eligible to receive direct payment:

• Return the Form SSA-1695 to the representative; and

• Advise the representative that SSA makes direct fee payment only to attorneys and those non-attorneys who have become eligible to receive direct payment.

4. Incomplete Form SSA-1695 or Form SSA-1694

If the representative submits one of the forms and the form(s) is incomplete, first, make an attempt to contact the representative via telephone to obtain the needed information. Second, if phone contact is unsuccessful, return the form(s) to the representative using the notice in the Document Processing System (DPS) or at GN 03910.090 Exhibit 8.

If the representative submits an SSA-1695 to the FO with an SSA-1699, hold the SSA-1695 and fax the SSA-1699, following procedure in GN 03913.000. Unless the individual is already registered or the form is complete, the FO cannot act on the Form SSA-1695 at that time. If only the Form SSA-1695 is incomplete, follow the procedures in MSOM INTRANETARDB 001.002 through MSOM INTRANETARDB 001.004 to establish the representative on the ARDB and return the Form SSA-1695 to the representative using the notice in DPS or at GN 03910.090 Exhibit 8.

5. Form SSA-1695 is not received prior to effectuating the claim

If the SSA-1695 is not present or recorded in POTS prior to effectuation of the claim, and the representative later indicates that the representative did not receive direct pay, the FO or PC must:

• Verify that the representative was eligible for direct pay at the time of effectuation and was registered in ARDB; and

• Request proof of timely submission of the SSA-1695;

• If the representative provides proof showing that the SSA-1695 was submitted timely, process the SSA-1695 and follow procedures in GN 03920.055.