Federal Register Notice On Attorneys Providing SSNs

As expected, Social Security published a notice in the Federal Register today requiring attorneys who represent Social Security claimants to submit their Social Security numbers as a condition of getting direct payment of fees for representing Social Security claimants. To do so, an attorney must undertake two actions. First, the attorney must complete a form SSA-1699 on a one time basis. Second, the attorney must complete a form SSA-1695 for each individual case. The form SSA-1695 appears to not be ready yet. This will result in attorneys receiving SSA-1099 forms showing their payments from Social Security. Eventually, this will require direct deposit of attorney fees, although that is apparently not being required for now.

There is a problem with the notice that will affect all attorneys who practice in a corporate form or who work for another attorney. This is an e-mail I sent today to , whose e-mail address is shown on the Federal Register notice, as the person at SSA to contact for further information:

I have just read the notice published this morning in the Federal Register and I'm confused, or perhaps I should say it appears to me that Social Security is confused.

My law firm is a professional corporation. It has its own taxpayer identification number. It files its own corporate tax return. We have 6 attorneys all representing Social Security claimants. All of the fee checks we get go into the firm's bank account and are reflected on the firm's tax return, not our individual returns.

If each of us provides our individual SSN, we will each get an SSA-1099, but we will not be reporting that income on our individual tax returns. If we do it the way this notice says we are supposed to, each of the attorneys in the firm will have a problem with the IRS every year, since we will have a good deal of income shown on our SSA-1099s under our individual SSNs that is not reflected on our individual tax returns.

I don't think that SSA is requiring those who contract with the agency to provide goods and services to provide their individual SSNs. You recognize that there are such things as corporations. I think you need to recognize that fact when you deal with attorneys. In fact the act that requires SSA to issue these 1099s, talks of TINs, as your notice indicates, but the notice seem to be contradicting the statute to require SSNs.

SSA needs to publish a new notice making it clear that we can provide TINs.

Upcoming Meetings and CLE

• October 3, 2006 Valpariso Law School CLE, Valpariso, IN
  
• October 6-7, National Council of Social Security Management Associations (NCSSMA) Regional Meeting, Atlanta, GA
  
• October 11-14, 2006 National Organization of Social Security Claimants Representatives (NOSSCR) CLE, Phoenix, AZ
• October 13, 2006 Lycoming Law Association CLE, Williamsport, PA
  
• October 16-19, 2006 NCSSMA National Meeting, Milwaukee, WI
• October 24, 2006 D.C. Bar CLE, Washington, D.C.
• October 26, 2006 Social Security Advisory Board, Washington, DC
• October 27, 2006, ABA Administrative Law Section CLE on Social Security Court, Washington, D.C.
  
• November 2-4 2006, NCSSMA Regional Meeting, San Juan, PR
  
• November 17, 2006 SSI Coalition Meeting, Boston, MA
• March 9, 2007 Ohio Academy of Trial Lawyers CLE, Columbus, OH
  
• April 18-20 2007, NADE Regional Conference, Albuquerque, NM
  
• April 18-21 2007, NOSSCR CLE, Baltimore, MD
• May 7-10 2007, NADE Regional Conference, Atlanta, GA
  
• May 20-23, 2007, National Association of Disability Examiners Meeting, Stowe, VE
• October 17-20, 2007, NOSSCR CLE, St. Louis, MO
• April 8-11, 2008 NADE Regional Conference, Austin, TX

If you know of one that I have missed, please e-mail me at charles[@]charleshallfirm.com.

Podcasting Social Security

Jonathan Ginsberg of Atlanta has created a series of 10 podcasts on Social Security disability benefits available through his ssdRadio website.

Michael Astrue's Father

This is a very old story that might surprise even Michael Astrue, the nominee for Social Security Commissioner. According to Time magazine his father kept winning and winning on a television quiz show in 1959. Note that there are not that many Astrues in the world, that Mike Astrue was born on a military base in New Jersey in 1956 and that this James Astrue was in the Air Force serving in New Jersey at the time. Also, Michael Astrue's middle name is James. It has to be Michael Astrue's father.

It is scary to think how much information will be available on the internet in another 30 or 40 years. The privacy implications are staggering. This information is trivial, but in the future our youthful indiscretions may be permanently recorded on the internet for anyone to quickly access.

Federal Register Alert: Attorney Fees

The Office of Federal Register has posted the item below showing that Social Security has filed a notice to be published in the Federal Register on Monday. The notice will almost certainly require attorneys to provide their Social Security number of Employer Identification Number and direct deposit information in order to get fees paid by Social Security:

Agency information collection activities; proposals, submissions, and approvals, E6-16171

Social security benefits and supplemental security income:

Agency fee payment for approved services; representative registration requirements, E6-16096

Will The Last One Out Turn Off The Lights

From the Baltimore Business Journal:

The U.S. Social Security Administration is looking to move workers from its Metro West campus in downtown Baltimore to a smaller office elsewhere in the city due to cutbacks in its work force.

As many as 5,000 people once worked in the pair of connected buildings at 300 Greene St., but that number is below 2,000 now, said Mark Lassiter, spokesman for the Social Security Administration. In contrast to the 900,000-square-foot Metro West, the administration is now looking for property in the range of 525,000 square feet, with a capacity of about 1,900 workers.

New Forms For Direct Deposit Of Attorney Fees

Social Security has posted two new forms to be used in its upcoming system for direct deposit of attorney fees. The first is SSA-1694, which is used to supply a taxpayer identification number for a business entity. The second is SSA-1699, by which an attorney would supply information about a professional association and provide direct deposit information. It is unclear whether the SSA-1699 would have to be filled just once or filed separately for each client.

The SSA-1699 has one obvious problem. For the direct deposit information, the form says that "You must be the owner or co-owner of the account" and asks that you check to indicate whether you are. This is a problem for any attorney who works for a professional corporation or who works as an associate attorney anywhere. An associate attorney is an employee of a law firm, rather than a partner or princilpe who has an ownership interest. The form, as currently set up, would probably exclude most attorneys representing Social Security claimants, since most of them are either associate attorneys or attorneys who work for professional corporations. There are other places on the form that suggest confusion about law firm organization. The person filling out the form is asked to check one of two blocks. One is labeled "Sole proprietor or Single-Member LLC/LLP" and the other is "Partner or Salaried Employee." It makes no sense to distinguish between Single-Member and non-Single-Member professional corporations and there are many more designations for professional corporations than LLC and LLP. Also, partners and salaried employees are lumped together, but are rather different ecenomically. This form will have to be redone. Fortunately, this system will not be mandatory for some time.

No Hiring Freeze At SSA -- At Least Not Yet

Jo Anne Barnhart, Social Security's Commissioner until January 2007, has made it clear that she expects major budget problems in the next fiscal year, which begins on October 1. She has predicted a hiring freeze plus the possibility of staff furloughs. Consistent with this has been a dramatic downturn in the number of open jobs advertised at SSA. The number of jobs advertised by SSA has been steadily decreasing in September and none had a closing date after the end of September -- until today. I had expected that SSA would soon be advertising no openings. However, Social Security has now advertised two jobs with a closing date in October. This may indicate a slight improvement in the budget picture or perhaps all it indicates is that even under a hiring freeze there will be a few critical positions filled. The two jobs advertised are for an air conditioner mechanic in California and an administrative specialist in Illinois.