Good News On 1695s

Beginning January 1, 2007 attorneys and others entitled to withholding of fees for representing Social Security claimants must file a new form 1695, which provides Social Security with the attorney's or representative's Social Security Number. This will allow Social Security eventually to prepare 1099s giving the attorney or representative and the IRS information about fees received. The 1695 form appears to require the attorney or representative to list the name and Social Security Number of each of a claimant's dependents who may receive benefits on the account. Providing the dependents' names and Social Security Numbers may sound like a minor matter, but it would be a major burden on attorneys and representatives and, for that matter, the data entry would be a major burden on Social Security itself.

I have received word today from the National Organization of Social Security Claimants Representatives (NOSSCR) that Social Security has decided that providing the dependent names and Social Security Numbers is optional. There will be no punishment for failing to provide the information.