Proposed Revisions to Rules on Representation of Parties

SSA recently proposed to make several changes to their rules with regard to representation.

Recognizing that their regulations are outdated, and the realities of the present state of the law, SSA proposes to finally recognize entities as representatives. Currently, SSA only recognizes attorneys or other “persons” as representatives. If the current proposals are enacted, SSA will finally recognize entities, such as law firms, as representatives. This will make it easier for claimants to obtain the counsel of their choice, and offer greater flexibility by not requiring the claimant to file a new 1696 for each entity employee who represents a claimant during the process. The entity will be bound by the actions of its employees during their association with the entity, regardless of whether that association ends at a later date.

Obviously, a company cannot sign a form. Because some agent of the company must sign the form, SSA has proposed that, if a claimant appoints an entity as its representative, the entity employee that signs the Appoint of Representative form will be designated the Principal Representative, responsible for disseminating information and requests. Principal representatives will be allowed to sign and file applications on behalf of claimants, provided the claimant has been afforded the opportunity to verify accuracy. The claimant will remain responsible for the content of the application.

SSA has further proposed to introduce the concept of a Professional Representative, and distinguish it from a principal representative. The definition of a professional representative “includes any attorney, any individual other than an attorney, or any entity that holds itself out to the public as providing representational services” before SSA. The definition is intended to cover the vast majority of representatives.

In contrast, a principal representative may be, for example, a friend or relative who represents a claimant for a single claim. The reason for the distinction is that SSA proposes that professional representatives be required to submit certain forms electronically, in a manner SSA prescribes. Professional representatives would also be required to undergo certain registration requirements, in order to access the electronic media prescribed.

Registration requires entities and their employees to provide certain personal, professional, and business information used to authenticate and authorize employees to do business with SSA. The proposal did not make clear what “personal information” an employee would be required to provide. Registration would be a one-time process, unless the business information changes.

SSA further proposes that all direct fee payments to representatives be made via electronic funds transfer. An entity would be required to take certain actions before direct payment could be made. First, it would be required to maintain a signed statement from each of the entity’s attorneys who represent claimants. The statement must aver that the attorney is performing representational services on behalf of an entity, that the fee should be paid directly to the entity, and that the entity is directly compensating the attorney. Any entity requesting direct payment would be attesting to possession of this signed statement by each attorney who has worked on the claim in question. The entity must additionally attest that all individuals who have performed representational services be qualified for direct payment. Representational services include, but are not limited to, representing the claimant at any hearing or proceeding before SSA or the federal court.

SSA also proposes to modify its rules with regard to issuance of IRS 1099 forms. Such forms may then be issued to both entities and individuals.

Other proposals include making the 1696 the document for appointment, revocation or withdrawal of a representative. The 1696 will be electronically signed by the representative. In addition, professional representatives and individuals working on behalf of a claimant would be required to attest that they know, understand, and will comply with SSA rules. They would also require that the 1696 with original signature be maintained. New prohibited actions include assisting any person that has been disqualified from appearing as representative before the SSA.