Changes to the Administrative Rules for Claimant Representation and Provisions for Direct Payment to Entities (Marasco Decision)- RIN 0960-AI22

Federal Register / Vol. 88, No. 149 / Friday, August 4, 2023 / Proposed Rules
Requirements Bulletin 757–53A0106 RB,
dated January 3, 2023.
(h) Exceptions to Service Information
Specifications
(1) Where the Compliance Time column
and notes of the tables in the ‘‘Compliance’’
paragraph of Boeing Alert Requirements
Bulletin 757–53A0106 RB, dated January 3,
2023, use the phrase ‘‘the original issue date
of Requirements Bulletin 757–53A0106 RB,’’
this AD requires using ‘‘the effective date of
this AD.’’
(2) Where Boeing Alert Requirements
Bulletin 757–53A0106 RB, dated January 3,
2023, specifies contacting Boeing for repair
instructions and doing the repair, this AD
requires doing the repair, or doing the
alternative inspections and applicable oncondition actions, before further flight using
a method approved in accordance with the
procedures specified in paragraph (i) of this
AD.
(i) Alternative Methods of Compliance
(AMOCs)
(1) The Manager, Continued Operational
Safety Branch, FAA, has the authority to
approve AMOCs for this AD, if requested
using the procedures found in 14 CFR 39.19.
In accordance with 14 CFR 39.19, send your
request to your principal inspector or
responsible Flight Standards Office, as
appropriate. If sending information directly
to the manager of the certification office,
send it to the attention of the person
identified in paragraph (j) of this AD.
Information may be emailed to: [email protected].
(2) Before using any approved AMOC,
notify your appropriate principal inspector,
or lacking a principal inspector, the manager
of the responsible Flight Standards Office.
(3) An AMOC that provides an acceptable
level of safety may be used for any repair,
modification, or alteration required by this
AD if it is approved by The Boeing Company
Organization Designation Authorization
(ODA) that has been authorized by the
Manager, Continued Operational Safety
Branch, FAA, to make those findings. To be
approved, the repair method, modification
deviation, or alteration deviation must meet
the certification basis of the airplane, and the
approval must specifically refer to this AD.

TKELLEY on DSK125TN23PROD with PROPOSALS

(j) Related Information
For more information about this AD,
contact Wayne Ha, Aviation Safety Engineer,
FAA, 2200 South 216th Street, Des Moines,
WA 98198; phone: 562–627–5238; email:
[email protected].
(k) Material Incorporated by Reference
(1) The Director of the Federal Register
approved the incorporation by reference
(IBR) of the service information listed in this
paragraph under 5 U.S.C. 552(a) and 1 CFR
part 51.
(2) You must use this service information
as applicable to do the actions required by
this AD, unless the AD specifies otherwise.
(i) Boeing Alert Requirements Bulletin
757–53A0106 RB, dated January 3, 2023.
(ii) [Reserved]
(3) For service information identified in
this AD, contact Boeing Commercial

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Airplanes, Attention: Contractual & Data
Services (C&DS), 2600 Westminster Blvd.,
MC 110–SK57, Seal Beach, CA 90740–5600;
telephone 562–797–1717; website
myboeingfleet.com.
(4) You may view this service information
at the FAA, Airworthiness Products Section,
Operational Safety Branch, 2200 South 216th
St., Des Moines, WA. For information on the
availability of this material at the FAA, call
206–231–3195.
(5) You may view this service information
that is incorporated by reference at the
National Archives and Records
Administration (NARA). For information on
the availability of this material at NARA,
email [email protected], or go to:
www.archives.gov/federal-register/cfr/ibrlocations.html.
Issued on July 8, 2023.
Michael Linegang,
Acting Director, Compliance & Airworthiness
Division, Aircraft Certification Service.
[FR Doc. 2023–16365 Filed 8–3–23; 8:45 am]
BILLING CODE 4910–13–P

SOCIAL SECURITY ADMINISTRATION
20 CFR Parts 404, 416, and 422
[Docket No. SSA–2023–0018]
RIN 0960–AI22

Changes to the Administrative Rules
for Claimant Representation and
Provisions for Direct Payment to
Entities
Social Security Administration.
Notice of proposed rulemaking.

AGENCY:
ACTION:

We propose to revise our
regulations to enable us to directly pay
entities fees we may authorize to their
employees, as required by the decision
of the United States Court of Appeals for
the First Circuit (First Circuit) in
Marasco & Nesselbush, LLP v. Collins.
To make direct payments, issue the
necessary tax documents, and properly
administer these rules, we propose to
require all entities that want to receive
direct payment of assigned fees and all
representatives who want to be
appointed on a claim, matter, or issue to
register with us. We also propose to
standardize the registration,
appointment, and payment processes.
We expect that this proposed rule will
help us implement the changes required
by the Marasco decision, increase
accessibility to our electronic services,
reduce delays, and help us prepare for
more automation, thereby improving
our program efficiencies.
DATES: To ensure that your comments
are considered, we must receive them
by no later than October 3, 2023.
ADDRESSES: You may submit comments
by any one of three methods—internet,
SUMMARY:

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fax, or mail. Do not submit the same
comments multiple times or by more
than one method. Regardless of which
method you choose, please state that
your comments refer to Docket Number
SSA–2023–0018 so that we may
associate your comments with the
correct regulation.
Caution: You should be careful to
include in your comments only
information that you wish to make
publicly available. We strongly urge you
not to include in your comments any
personal information, such as Social
Security numbers or medical
information.
1. Internet: We strongly recommend
that you submit your comments via the
internet. Please visit the Federal
eRulemaking portal at https://
www.regulations.gov. Use the ‘‘search’’
function to find Docket Number SSA–
2023–0018. The system will issue a
tracking number to confirm your
submission. You will not be able to
view your comment immediately
because we must manually post each
comment. It may take up to a week for
your comment to be viewable.
2. Fax: Fax comments to 1–833–410–
1631.
3. Mail: Mail your comments to the
Office of Legislation and Congressional
Affairs, Regulations and Reports
Clearance Staff, Social Security
Administration, Mail Stop 3253
Altmeyer, 6401 Security Boulevard,
Baltimore, Maryland 21235–6401.
Comments are available for public
viewing on the Federal eRulemaking
portal at https://www.regulations.gov or
in person, during regular business
hours, by arranging with the contact
person identified below.
FOR FURTHER INFORMATION CONTACT:
Mary Quatroche, Director, Office of
Disability Policy, Office of Vocational
Evaluation and Process Policy, Social
Security Administration, 6401 Security
Boulevard, Baltimore, MD 21235–6401,
(410) 966–4794. For information on
eligibility or filing for benefits, call our
national toll-free number, 1–800–772–
1213 or TTY 1–800–325–0778, or visit
our internet site, Social Security Online,
at https://www.ssa.gov.
SUPPLEMENTARY INFORMATION:
Background
Any person who claims a benefit
under our programs may appoint a
representative(s) to assist with their
claim, and the representative(s) may
seek a fee for the services they provide.
We must generally authorize any fee
that the representative(s) wants to
charge or collect. If we authorize a fee
to the representative(s), we may also pay

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Federal Register / Vol. 88, No. 149 / Friday, August 4, 2023 / Proposed Rules

TKELLEY on DSK125TN23PROD with PROPOSALS

that fee directly out of the claimant’s
past-due benefits, if certain conditions
are met.1 These representatives may be
employed by an entity, but currently,
we do not directly pay the entity for
work performed by a representative it
employs.2
In 2017, Marasco & Nesselbush, LLP,
a law firm, brought an action in Federal
court alleging, among other things, that
the law firm’s employees had no direct
right to authorized fees and that their
salaries do not depend on the amount of
fees generated by the disability cases in
which they act as representatives. On
July 16, 2021, the First Circuit issued a
decision instructing us to find a
reasonably reliable means for law firms
to receive direct payment of fees we
authorize to their salaried employees
while correctly reporting the income to
the Internal Revenue Service (IRS).3 On
remand, the United States District Court
for the District of Rhode Island issued
an order requiring us to, among other
things, undertake good faith efforts to
develop a process within 24 months
from the date of its March 23, 2022
order to ensure that law firms that
employ salaried associates to represent
claimants may receive direct payment of
fees to which the associates are entitled
for representation performed while
employed by the law firms.4
Each year we directly pay, on average,
almost a billion dollars in fees
authorized to appointed representatives
in title II cases alone.5 Standardization
and accuracy are essential to meet our
stewardship duties because these direct
fee payments are made from claimants’
past-due benefits. To implement the
First Circuit’s decision in a responsible,
timely, efficient, and practical manner,
we are proposing changes to standardize
several processes in our rules,
including: (1) registration of
representatives and entities; (2)
assignment of representational fees to
entities for direct payment, as well as
rescission of assignment; (3) point of
1 Generally, we will pay the fee directly if the
representative is registered and eligible for direct
payment; has not withdrawn or been revoked prior
to the favorable decision; and did not waive the fee
or direct payment of the fee. See Program
Operations Manual System (POMS) GN 03920.017.
2 Entity means any business, firm, or other
association, including but not limited to
partnerships, corporations, for-profit organizations,
and not-for-profit organizations. See 20 CFR
404.1703 and 416.1503.
3 Marasco, 6 F.4th 150, 178 (1st Cir. 2021).
4 See Order, ECF No. 63, Marasco & Nesselbush,
LLP v. Collins, No. 17–cv–317 (D.R.I. Mar. 23,
2022). A copy of the district court’s order has been
submitted to the rulemaking record in the
supporting documents.
5 In 2022, we paid $923.9 million in authorized
fees for title II claims. See https://www.ssa.gov/
representation/statistics.htm#2022.

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contact (POC) requirements for the
entity; and (4) direct payment to entities
by electronic funds transfer (EFT).
Below, we explain why and how these
four elements are necessary to
implement the court’s decision.
I. Definition of Terms for Purposes of
This Proposed Rule
We propose to define, or redefine,
certain terms as they will be used in our
rules on representation.6 These
definitions would only apply within the
context of our rules on representation
found at 20 CFR 404.1700 et seq. and
416.1500 et seq. We would include
these definitions in 20 CFR 404.1703
and 416.1503.
We propose to define Assignment to
mean the transfer of the right to receive
direct payment of an authorized fee to
an entity. This defined term is used in
changes proposed to 20 CFR 404.1703,
404.1730, 416.1503, and 416.1530.
We propose to define a Point of
Contact to mean an individual who is a
registered representative selected by an
entity to speak and act on the entity’s
behalf and who assumes the affirmative
duties and obligations we prescribe.
This defined term is used in changes
proposed to 20 CFR 404.1703, 404.1735,
404.1740, 416.1503, 416.1535, and
416.1540.
We propose to define Registration to
mean a process by which a
representative or entity provides the
information we require to conduct
business with us. This defined term is
used in changes proposed to 20 CFR
404.1703, 404.1705, 404.1735, 416.1503,
416.1505, and 416.1535.
We propose to redefine
Representative to mean an attorney who
meets all the requirements of 20
CFR 404.1705(a) and 416.1505(a), or a
person other than an attorney who
meets all the requirements of 20
CFR 404.1705(b) and 416.1505(b), and
whom you appoint to represent you in
dealings with us. For purposes of our
rules of conduct and standards of
responsibility, Representative also
includes an individual who provides
representational services and an
individual who is listed as a POC for an
entity, as applicable to their identified
role. This defined term is used in
changes proposed to 20 CFR 404.1703,
404.1720, 404.1740, 416.1503, 416.1520,
and 416.1540.
6 20

CFR part 404, subpart R and part 416, subpart

O.

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II. Allowing Representatives To Assign
Direct Payment of Authorized Fees to
Entities
Under this proposal, to comply with
the Marasco decision, reduce burden,
and improve efficiency, we would allow
representatives to assign their right to
receive direct payment of an authorized
fee to an entity on each claim. If the
applicable conditions explained in
Section VI are met, we would accept an
assignment and certify payment of the
authorized fee to the entity. We would
make these changes in 20 CFR 404.1720
and 416.1520.
III. Registration by All Representatives
and Use of the Representative ID (Rep
ID)
Currently, representatives who want
direct payment of fees or access to our
electronic claim(s) file (eFolder) must
register with us.7 To register,
representatives complete and submit
Form SSA–1699 (OMB No. 0960–0732),
‘‘Registration for Appointed
Representative Services and Direct
Payment.’’ 8 To protect representatives’
privacy, we created the Representative
Identification number or Rep ID, which
we issue to the representatives during
registration to use in lieu of their Social
Security number (SSN). The Rep ID is
meaningful only within our systems.
Among other purposes, we use the
information we collect during
registration to issue checks or EFT to the
representative’s preferred banking
institution and to report the income on
Form IRS 1099 (OMB No. 1545–0119),
as required by the IRS.9 This
information is also necessary to assess a
user fee on each direct payment, as
required by sections 206(d) and
1631(d)(2)(C) of the Social Security Act
(the Act).10 We currently have several
thousand registered representatives.11
7 71

FR 58043 (Oct. 2, 2006).
at 58043–44.
9 To pay an authorized fee directly to a
representative we must collect certain information
that enables us to meet our obligations under
sections 6041(a) and 6045(f) of the Internal Revenue
Code (IRC) as implemented by 26 CFR 1.6041–1.
These sections require us to issue a Form 1099–
MISC or 1099–NEC (whichever is applicable) to
those who receive aggregate fees of $600 or more
in a calendar year. To comply with this
requirement, we collect the requisite information
such as the representative’s taxpayer identification
number (TIN), and the address where we can send
a check or the financial institution where we can
send an EFT payment.
10 The Debt Collection Improvement Act of 1996
(DCIA) provides that when an individual is doing
business with an agency, such as when that person
is assessed a fee, the agency head must require the
individual to provide their TIN to the agency. 31
U.S.C. 7701(c)(1), (c)(2)(D).
11 As of May 3, 2023, 43,620 attorneys and 2,955
eligible for direct payment non-attorneys (EDPNAs)
were registered for direct payment and access to our
8 Id.,

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Federal Register / Vol. 88, No. 149 / Friday, August 4, 2023 / Proposed Rules
Currently, we generally communicate
with unregistered representatives via
manual notifications. In this rule, we
propose to require all representatives to
register with us prior to being appointed
on any claim. We expect several benefits
from this proposed requirement. We
expect that this requirement would
allow us to conduct business more
efficiently because it would allow us to
automate more notices, minimize
manual errors, properly track
transactions and related
communications, and improve our
sanctions process. The proposed
registration requirement would help us
further automate communications that
are managed by our centralized
representative database and share the
information with our secondary
databases used to process cases at
different adjudicatory levels, so these
systems can also automate their
communications. We expect that this
increased automation would also make
the processing of appointments and fee
payments more efficient by reducing
errors associated with manual actions.
In addition, the registration requirement
would enable us to better track all
representatives’ actions and conduct on
their cases, rather than just those who
choose to register with us, and it would
extend access to our electronic services
to more representatives. Access to our
Electronic Records Express (ERE)
system, for example, has been an
important tool for representatives to
obtain real-time information from our
files in an easy and efficient way
without the need to contact an agency
employee for that information.
Registration will continue to be a onetime process unless the representative’s
information changes and registration
data must be updated.
We will also require representatives to
register before being named as a POC for
an entity. Requiring representatives to
register with us before being designated
as POCs would facilitate quicker
processing of the entity’s registration
because the representative’s information
would already be in our system and
would not need to be manually keyedin by a technician prior to processing
the entity’s registration. It would also
allow us to readily identify and verify
the POC when we share certain claim
information to resolve fee matters and,
if needed, ensure accountability under
our rules of conduct as explained in
electronic claim files in our centralized database,
Registration, Appointment and Services for
Representatives (RASR). Because we are unable to
maintain detailed information on unregistered
representatives in our centralized representative
database, we do not have specific numerical data
or statistics about this group.

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Section VIII below. Registration would
also help us ensure that we keep
accurate and comprehensive records of
our communications with the entities
and their POCs. We would make these
changes in 20 CFR 404.1705 and
416.1505.
IV. Requiring Entity Registration Before
We Accept a Request To Directly Pay
an Entity
To enable direct payments to entities
and meet our mandatory tax reporting
obligations to the IRS, we will need to
collect information such as tax
identification numbers, addresses, and
banking institutions from entities. We
currently ask representatives to
voluntarily register the entity with
which they are affiliated so that we can
issue a copy of Form IRS 1099 to their
employer to assist the parties in their
accounting and tax reporting duties.
When an entity elects not to register
with us, we cannot issue a Form IRS
1099 to that entity. To pay an entity, we
will need the entity to register before we
can accept any assignment of direct
payment so that we can ascribe income
to the entity correctly. To register
entities, we developed the standard
Form SSA–1694 (OMB No. 0960–0731),
‘‘Request for Business Entity Taxpayer
Information’’ to collect the entity’s name
and address to mail the Form IRS 1099.
Under this proposed rule, registration
would continue to be voluntary for
entities not being assigned direct
payment of authorized fees. Like
representative registration, entity
registration would be a one-time
transaction unless the entity needs to
update its information. However, any
entity previously registered under our
prior process that wants to receive
direct payment of assigned fees would
have to register again to provide
additional information we do not
currently have, such as its banking
information and information regarding a
designated POC. Entities would then be
responsible, through their POC, for
keeping their information accurate and
current. To ensure we collect all the
information we need to make direct
payment and issue tax forms, we
propose to require use of a standard
process (currently this involves
submission of the Form SSA–1694) to
register. This would ensure that the
information we need would be collected
in one document to facilitate processing.
We would make these changes in 20
CFR 404.1735 and 416.1535.
V. Standardizing the Representative
Appointment Process
Our rules in 20 CFR 404.1707 and
416.1507 require claimants and their

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51749

representatives to submit a written
notice of appointment to inform us
about the claimants’ decision to engage
representation. This notice allows us to
confirm the person has the requisite
qualifications to be a representative and
recognize the person as the
representative.12 Currently, we do not
require the use of our standard notice of
appointment Form SSA–1696 (OMB No.
0960–0527), ‘‘Claimant’s Appointment
of a Representative,’’ to document
representative appointments. However,
in practice we find that most
representatives and claimants use this
form. We also do not currently require
attorney representatives to sign a notice
of appointment, whether they use our
standard form or another writing, but do
require non-attorneys to sign.13
Our standard Form SSA–1696 collects
information that helps us properly
identify the claimant, the principal
representative,14 and any other
representative. It helps us collect other
important information, such as the fee
arrangement, which helps us determine
whether we should withhold funds from
past-due benefits for possible direct
payment of any fee we authorize. It also
helps us determine the representative’s
affiliation with an entity, which enables
us to link the representative, the case,
and the entity in our records, so that we
may issue appropriate form(s) IRS 1099
for any payments we make in the case.
In any adjudicatory system as large as
ours, which processes millions of claims
each year, ‘‘the need for efficiency is
self-evident.’’ 15 To increase our
efficiency, we propose to require use of
our prescribed form for the appointment
of a representative (currently the SSA–
1696 or its electronic equivalent
(e1696)). We expect that the use of our
prescribed form will allow us to
standardize the appointment process,
facilitate the assignment of fees, and
allow quicker processing of each
appointment. Use of a prescribed
process and form for each individual
appointment will enable us to collect
12 See

POMS GN 03910.020A.
CFR 404.1707 and 416.1507.
14 A claimant may appoint multiple
representatives. However, if a claimant appoints
more than one individual to serve concurrently, the
claimant must designate one representative to be
the principal representative. We contact and send
notices or requests for development only to the
principal representatives. They are expected to
provide copies to other representatives. See POMS
GN 03910.040C (https://secure.ssa.gov/apps10/
poms.nsf/lnx/0203905040), and Hearing, Appeals
and Litigation Law manual (HALLEX) I–1–1–10C
(https://www.ssa.gov/OP_Home/hallex/I-01/I-1-110.html) and I–1–1–11 (https://www.ssa.gov/OP_
Home/hallex/I-01/I-1-11.html).
15 See Barnhart v. Thomas, 540 U.S. 20, 29
(2003); Heckler v. Campbell, 461 U.S. 458, 461, n.2
(1983).
13 20

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Federal Register / Vol. 88, No. 149 / Friday, August 4, 2023 / Proposed Rules

TKELLEY on DSK125TN23PROD with PROPOSALS

necessary information, such as the Rep
ID we issue at registration and fee
arrangement information, with every
appointment. We also would require a
signature by all representatives, whether
the representative is an attorney or a
non-attorney.
Additionally, under our current
process, we have difficulty identifying
individuals or processing their
documents when we do not receive
certain information at the start of the
appointment. Considering the large
number of claims that we process each
year, it is only prudent that we require
the use of a prescribed process and
form, rather than relying on
representatives to develop their own
method to supply the information we
need. In addition to the efficiencies
discussed above, this standardized
process would also minimize
inconsistencies and reduce the need for
recontacts that can cause delays and
inconvenience. Lastly, when processing
appointments under our current rules,
technicians must confirm different
requirements are met depending on the
representative’s status as an attorney or
non-attorney. Standardizing the
signature requirement will improve
efficiency by implementing a uniform
rule.
Requiring a prescribed form (e.g., the
Form SSA–1696 or e1696) and
signatures from all representatives will
also strengthen uniformity in the
processing of appointments. We would
make these changes in 20 CFR 404.1707
and 416.1507, with additional language
changes to accommodate potential
developments in the method for
submitting appointments. With this
proposed rule, we are not changing our
current signature method requirements.
VI. Payment to Entities via EFT/Direct
Deposit Only
Currently, we collect preferences and
pay individual representatives by check
or EFT.16 We propose to pay entities to
whom fees have been assigned through
EFT only. Generally, EFT is the safest
and most convenient method to receive
Federal payments. It is a reliable,
secure, fast, and contact-free method to
receive payments. In recent years, EFT
has also become increasingly popular
because for most recipients it is more
convenient than paper checks.17 For
16 See 31 CFR 208.4 (enumerating certain
exceptions to the requirement that all non-tax
payments made by Federal agencies be made by
EFT).
17 U.S. Dept. of the Treasury, Final Rule for
Electronic Government Payment Will Balance
Recipient Needs With Benefits of Electronic
Payment (June 25, 1998), available at https://
home.treasury.gov/news/press-releases/rr2560.

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over a decade, EFT has also been
required by law for Federal nontax
payments, with limited exceptions.18
One of those exceptions allows agencies
to waive the EFT requirement when the
agency does not anticipate making
payments to the same recipient on a
regular, recurring basis within a oneyear period and the recipient’s financial
institution does not make remittance
data explaining the purpose of the
payment readily available.19 As the
Department of the Treasury explained in
a 2010 rulemaking proceeding, this
exception arose to address the needs of
individual representatives seeking fee
payments from us who claimed that
their banks were not able or willing to
provide all the information needed to
identify the client on whose account the
deposit was made and who were
precluded from electronically
depositing their fee payments into their
employer/firm’s bank account.20
However, even at the time of that 2010
rulemaking, we had taken steps to begin
transmitting information to banks to
enable representatives to link payments
to clients, and we encouraged those
banks to pass that information on to
their account holders as quickly as
possible, thus addressing the issue of
the availability of information tying
payments to specific clients.21 Allowing
direct payment to entities will resolve
the representatives’ concern about the
inability to deposit their fee payments
into their employer’s bank account.
Because we propose to resolve the
issues that led to the waiver rule and
because the Department of the Treasury
discourages use of this waiver and
advised that it only be used sparingly,22
we propose not to apply the waiver to
entity payments.
Further, offering check payments to
entities would require changes to our
systems that would involve significant
time and resources. Limiting entity
payments to EFT would help us ensure
that our implementation of direct
payment to entities is timely and that,
upon the effective date of any final rule
based on this proposal, we would begin
certifying payment of fees directly to
entities. The proposed rule would not
change our current payment process or
options for individual representatives.
We would include these changes in 20
CFR 404.1735 and 416.1535.
18 See 31 U.S.C. 3332(e), (f); 31 CFR 208.1; but see
31 CFR 208.3 and 208.4 (enumerating certain
exceptions to the EFT requirement).
19 31 CFR 208.4(a)(6).
20 See 75 FR 80315, 80325.
21 Id.
22 Id.

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VII. Establishing a New Process for
Appointed Representatives To Request
Direct Payment of Authorized Fees to
an Entity
To assign direct payment of an
authorized fee, the representative would
need to: (1) be eligible for and seek
direct payment; (2) be associated
(affiliated) with the entity through our
registration process; and (3) make the
assignment timely and in the manner
we prescribe. In addition, the entity
would need to be eligible for direct
payment as described later in this
proposed rule. Where all these
conditions are satisfied, we propose to
accept or honor an assignment. We
would check eligibility at the time we
process the assignment and at the time
we certify the direct payment. An
invalid assignment would not affect the
processing of an otherwise valid notice
of appointment.
Although we will not limit
representatives to only assigning fees at
the time of an appointment, we believe
that it will be most efficient to collect
the representative’s intent to assign
direct payment of the fee at that time.
Capturing information about
assignments during the appointment
process would ensure we record each
assignment early in the claim(s) process,
help us streamline fee payments, allow
us to automate as many fee payments as
possible, and prevent delays and errors,
all of which help us improve the
timeliness and accuracy of our fee
payment process.
We propose to allow representatives
to rescind a previously submitted
assignment in the same manner they
established it. We would allow a
representative to withdraw an
assignment by submitting an updated
version of our prescribed form on which
the representative deselects the
assignment option, provided that the
representative does so before the date
we notify the claimant of our first
favorable determination or decision.23
We would not accept any request to
rescind an assignment after this date.
Having a deadline for assignments and
revisions to assignments also helps to
ensure the accuracy and timeliness of
our fee payments. After our decision
makers render a favorable determination
or decision, we transfer the case to the
appropriate office for final review and
payment (called ‘‘effectuation’’). New
representational documents received
after the date we notify the claimant of
a favorable determination or decision
23 Throughout this preamble, ‘‘favorable
determination or decision’’ refers to either a fully
or partially favorable determination or decision.

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TKELLEY on DSK125TN23PROD with PROPOSALS

Federal Register / Vol. 88, No. 149 / Friday, August 4, 2023 / Proposed Rules
will delay the effectuation process or
cause inaccurate payments.
An assignment would remain valid
regardless of continued employment
with the entity unless other reasons
would invalidate the assignment. Some
reasons to invalidate an assignment
would include a disqualification or
suspension of the representative,
because an entity’s eligibility for direct
payment in a case depends on the
representative’s eligibility for direct
payment; the entity becoming ineligible
for direct payment; or the
representative’s timely rescission of the
assignment, as explained above. By its
own actions, an entity could become
ineligible for direct payment, such as if
it retains unauthorized fees or fees that
exceed the amount we authorized,24 as
explained more fully later in this
preamble.
We propose to reject an assignment if
the representative and entity did not
properly register prior to submission of
the assignment, or if the representative
did not properly identify the entity by
providing the entity’s name and EIN
when making the assignment. We would
also reject any assignment that was
made to an entity that is ineligible for
direct payment, that was made by a
representative who is not eligible for or
requesting direct payment of an
authorized fee, or that was not filed
before the date that we notify the
claimant of our first favorable
determination or decision. To prevent
individuals from circumventing our
direct payment and professional
conduct rules, we would allow direct
payment to entities only when the
assignment is made by a representative
eligible for direct payment.25 We would
notify the representative if we rejected
an assignment. The rejection of an
assignment would not affect processing
of an otherwise valid appointment or
the representative’s eligibility for direct
payment.
Payments to entities would be subject
to all our other rules governing payment
of fees, including the requirement that
past-due benefits are available and that
we have withheld them. If, at the time
we calculate the fee, the assignment
meets all the criteria for a valid
assignment, we would certify payment
of the authorized fee to the entity.
However, we would not charge
claimants with an overpayment to make
direct payment to an entity in situations
where, through no error of our own, we
did not withhold funds from past-due
benefits; where we were not timely
24 POMS

GN 03920.051A.
U.S.C. 406 and 1383; see also POMS GN
03920.017.
25 42

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informed of an assignment of fees;
where the entity was, at the time of
payment, ineligible for direct payment
but later became eligible; or where the
representative waived the fee, even if
the representative withdrew the waiver,
if that withdrawal occurred after we
already made all payments and released
the past-due benefits.
We would allow only one assignment
per representative per case. This
restriction means representatives could
not assign direct payment to multiple
entities in a single case. Doing so could
create confusion and increase the
administrative burden of processing
these payments. Additionally, allowing
a representative to assign fees to
multiple entities could lead to manual
processing errors which would be
contrary to our goal of increasing the
timeliness and efficiency of our fee
payment process. If multiple
representatives involved in a case are
affiliated with different entities, we
would make fee payments following our
existing rules for payments to multiple
representatives and apply the rules
proposed herein to qualify and fulfill
each assignment. If all other conditions
for a valid assignment are met, we
would accept or honor the most recently
updated (and timely submitted, as
described above) request to assign a fee,
which would supersede all prior
assignment requests made by that
representative. We would make these
changes in 20 CFR 404.1730, 404.1735,
416.1530, and 416.1535.
VIII. Recovery of Excess or Erroneously
Paid Fees, the Requirement To Name an
Entity POC, and Entity Eligibility for
Direct Payment
With this proposal, we would
establish a business process to ensure
that fee errors can be corrected,
consistent with our obligations to
claimants and our stewardship
obligation to protect taxpayer money. To
facilitate resolution of fee discrepancies
and other fee related issues, such as
correcting a Form IRS–1099, we would
require an entity to name a POC during
the entity’s registration. This POC
would need to be a registered
representative who is not currently
suspended or disqualified from
practicing before us. However, we
would not require the POC to be eligible
for direct payment to serve as a POC or
for the entity to receive an assigned fee.
We would collect the POC’s
information, including the POC’s name,
Rep ID, and phone number, during the
entity’s registration. We would reject
any registration that is missing this
information and notify the entity or
representative to provide the missing

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51751

information. To ensure consistent
communication, we would make the
POC and the entity jointly responsible
for keeping this information current.
We would expect the POC to assist us
in resolving fee-related matters and to
conduct all entity affairs with us with
diligence, truthfulness, and competence.
We would hold the POC responsible
under our Rules of Conduct and
Standards of Responsibility if these
duties are not met, but we would not
hold the POC financially responsible for
repayment of excess or otherwise
erroneous fee payments made directly to
the entity. The entity would be
responsible for repayment of excess or
otherwise erroneous fees. We propose to
revise our Rules of Conduct and
Standards of Responsibility for
Representatives to account for the new
POC role in our processes. We would
make these changes in 20 CFR 404.1735,
404.1740, 416.1535, and 416.1540.
IX. Restricting Eligibility for Direct
Payment for Certain Entities
We propose to make entities ineligible
for direct payment if they do not remit
excess or otherwise erroneous fees; if
they do not maintain an active POC; if
they, through their POCs, do not assist
us in correcting a fee payment error; or
if they do not comply with our rules. An
entity would need to update the entity
registration to name a new POC
immediately if there is any change in
the current POC’s status. This would
ensure that any necessary
communications regarding fees and fee
payments would not be disrupted. We
would work with the POC to correct
possible fee inaccuracies or recover
erroneous fees.
We will maintain a list of entities that
are ineligible for direct payment. We
would place an entity on this list if that
entity failed to resolve an excess or
otherwise erroneous fee, after notice to
the POC in our records. We would halt
direct payments to any entity on this list
and not accept new assignments from
representatives made to an entity on this
list. We would remove an entity from
the list and accept new assignments
when the entity resolves to our
satisfaction the fee matter or other issue
restricting eligibility. If the entity is
ineligible for direct payment at the time
we are ready to make direct payment,
we will make the payment to the
representative who created the
assignment if that representative
remains eligible for direct payment. If
the representative is no longer eligible
for direct payment at that time, we
would, as we currently do, release the
funds to the claimant.

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Federal Register / Vol. 88, No. 149 / Friday, August 4, 2023 / Proposed Rules

Establishing a process to recover fees
and correct errors is necessary to
preserve program integrity, safeguard
claimants’ past-due benefits, and ensure
that we properly and efficiently manage
financial matters with entities. We
would make these changes in 20 CFR
404.1735 and 416.1535.

TKELLEY on DSK125TN23PROD with PROPOSALS

X. Waivers’ Effect on Direct Payment to
Entities
To avoid circumvention of our direct
payment rules, as discussed above,
representatives who waive their fee,
direct payment, or both would not be
permitted to make an assignment, since
there would be no fee or direct payment
to assign. We would not accept fee or
direct payment waivers made by
representatives who previously assigned
a fee and did not timely rescind that
assignment. Issues arising from
untimely assignment submissions or
rescissions, improper waivers, or similar
events would be matters between the
entity and the representative. We would
make these changes in 20 CFR 404.1730
and 416.1530.
XI. Replacing Form SSA–1695
We previously issued a Federal
Register Notice (FRN), ‘‘Identifying
Information For Possible Direct Payment
of Authorized Fees,’’ that required the
submission of Form SSA–1695 (OMB
No. 0960–0730), a now-obsolete form
that required the representatives’ SSN
and other personally identifiable
information, in each case in which a
representative sought direct payment.26
We have included relevant
information from this collection
instrument in the SSA–1696, while
eliminating the SSN requirement. The
2006 FRN’s requirements would be
obsolete if we finalize this proposal by
publishing a final rule.
Authority: The Commissioner of
Social Security is authorized to make
rules and regulations to carry out the
provisions of the Act, including
recognition of representatives, under
sections 205(a), 206(a)(1), 702(a)(5),
810(a), and 1631(d) of the Act.27
Solicitation for Public Comment: As
discussed elsewhere in this rulemaking,
we are seeking public comment on this
proposed rule. The initial impetus for
this proposal was to ensure we are in
compliance with the Marasco decision
guidelines. However, as previously
stated, we also want to use this
opportunity to minimize inconsistencies
and reduce the need for recontacts
associated with the representative fee
26 71

FR 58043 (Oct. 2, 2006).
U.S.C. 405(a), 406(a)(2), 902(a)(5), 1010(a),
and 1383(d).
27 42

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direct payment or appointment
processes (within the scope of this
proposed rule). Accordingly, while we
encourage public comments on all
aspects of the proposed rule, we note
these comments can include thoughts
and suggestions on other, related
improvements, provided they are within
the scope of this proposal.
Rulemaking Analyses and Notices
We will consider all comments we
receive on or before the close of
business on the comment closing date
indicated above. The comments will be
available for examination in the
rulemaking docket for these rules at the
above address. We will file comments
received after the comment closing date
in the docket and may consider those
comments to the extent practicable.
However, we will not respond
specifically to untimely comments. We
may publish a final rule at any time
after close of the comment period.
Clarity of This Rule
Executive Order (E.O.) 12866, as
supplemented by E.O. 13563 and E.O.
14094, requires each agency to write all
rules in plain language. In addition to
your substantive comments on this
proposed rule, we invite your comments
on how to make the rule easier to
understand.
For example:
• Would more, but shorter, sections
be better?
• Are the requirements in the rule
clearly stated?
• Have we organized the material to
suit your needs?
• Could we improve clarity by adding
tables, lists, or diagrams?
• What else could we do to make the
rule easier to understand?
• Does the rule contain technical
language or jargon that is not clear?
• Would a different format make the
rule easier to understand, e.g., grouping
and order of sections, use of headings,
paragraphing?
When will we start to use this proposed
rule?
We will not use this proposed rule
until we evaluate public comments and
publish a final rule in the Federal
Register. All final rules include an
effective date. We will continue to use
our current rules until that date. When
we publish a final rule, we will include
a summary of the significant comments
we received along with responses and
an explanation of how we will apply the
new rule.

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Regulatory Procedures
Executive Order 12866, as
Supplemented by Executive Orders
13563 and 14094
We consulted with the Office of
Management and Budget (OMB) and
they determined that this proposed rule
does not meet the criteria for a
significant regulatory action under E.O.
12866, as supplemented by E.O. 13563
and E.O. 14094, and is not subject to
OMB review.
We also determined that this
proposed rule meets the plain language
requirement of E.O. 12866.
Anticipated Accounting Costs of This
Proposed Rule
Anticipated Costs to Our Programs
Our Office of the Chief Actuary
estimates that implementation of these
proposed rules would result in
negligible changes (i.e., less than
$500,000) in scheduled OASDI benefits
and Federal SSI payments. This
estimate is based primarily on the
assumption that these proposed rules
would not materially affect the
availability and quality of
representation.
Anticipated Administrative Costs to the
Social Security Administration
The systems upgrades necessary to
comply with the Marasco decision are
funded and currently underway. We do
not expect that additional funding will
be needed. Once the rule becomes
effective, the Office of Budget, Finance,
and Management estimates
administrative costs of less than 15
work years and $2 million annually
from the updates to our current business
processes.
Anticipated Time-Savings and
Qualitative Benefits
Beyond complying with the Marasco
decision, we also anticipate this
proposed rule will be less burdensome
and more efficient for the affected
public. Currently, entities that employ
representatives must spend time and
effort working with those
representatives so the latter can remit
Social Security fee remuneration back to
the firm. By making the payment
directly to an entity rather than only to
a representative, we save both the entity
and the representative the time and
effort they would have otherwise spent
on completing the requisite paperwork
and financial transactions involved in
transferring funds (on the
representative’s end) and adjusting
accounting records to reflect the transfer
(on the part of the entity’s accounting or
bookkeeping staff). Ultimately, then,

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Federal Register / Vol. 88, No. 149 / Friday, August 4, 2023 / Proposed Rules
this change will ensure a faster and
more efficient process for
representatives and the entities who
employ them. This may also have
downstream positive effects for
claimants seeking representation; if
representatives and their employing
entities do not need to spend as much
time dealing with accounting and
paperwork, they could perhaps work on
existing cases faster, or could take on
more claimants to represent.
Executive Order 13132 (Federalism)
We analyzed this proposed rule in
accordance with the principles and
criteria established by E.O. 13132 and
determined that this proposed rule will
not have sufficient federalism
implications to warrant the preparation
of a federalism assessment. We also
determined that this proposed rule
would not preempt any State law or
State regulation or affect the States’
abilities to discharge traditional State
governmental functions.
Regulatory Flexibility Act
We certify that this proposed rule will
not have a significant economic impact
on a substantial number of small
entities. Although this proposed rule
would require small entities who want
to receive direct payment of authorized
fees to provide us with certain
information, maintain an active POC

404.1707(a), 416.1507(a),
SSA–1696 (0960–0527).

404.1720(f), 416.1520(f),
SSA–1696 (0960–0527).

TKELLEY on DSK125TN23PROD with PROPOSALS

404.1730(e)(2),
416.1530(e)(2), SSA–1696
(0960–0527).

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Paperwork Reduction Act
These proposed rules contain public
reporting requirements. For some

Description
of public
reporting
requirement

Regulation section

404.1707(a), 416.1507(a),
SSA–1696 (0960–0527).

responsible for interacting with the
agency, and accept payment by EFT,
these requirements would not
disadvantage small entities or limit their
ability to compete with larger
competitors. Additionally, this
proposed rule does not place significant
costs on entities.
We estimate that the time required for
a small entity to complete the one-time
transaction required to fill out and
submit a basic registration form, provide
banking information, and identify a POC
would be minimal. Once the initial
registration is complete, there would be
no additional burden on the entity
unless and until the entity needed to
update its registration information. We
anticipate that small entities that take
advantage of the opportunity to receive
direct payment of authorized fees
through the assignment process may
experience slight cost savings because of
improved accuracy and efficiency in
their recordkeeping processes and
because they would no longer need to
collect and properly account for
payments made to individual
representative employees. Therefore, a
regulatory flexibility analysis as
provided in the Regulatory Flexibility
Act, as amended, is not required.

You [claimant] complete and
sign our prescribed appointment form, and
Your representative completes and signs our prescribed appointment form,
and
A representative who is eligible for direct payment of
an authorized fee may assign direct payment of the
authorized fee to an entity
that is eligible for direct
payment.
A representative may rescind
an assignment before the
date on which we notify
you of our first favorable
determination or decision.

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Number of
respondents
(annually)

sections in these rules, we previously
accounted for the public reporting
burdens under the following OMB
approved information collections: 0960–
0527 (SSA–1696, Appointment of
Representative, which allows an
individual to appoint a representative,
and requires the representative’s
agreement to serve as representative),
0960–0731 (SSA–1694, Request for
Business Entity Taxpayer Information,
which requests specific taxpayer data
from representatives requesting a fee),
and 0960 0732 (SSA–1699, Registration
for Appointed Representative Services
and Direct Payment, which requires the
representatives to prove eligibility when
they register with SSA and allows them
to request a fee). Consequently, we are
not reporting those sections below.
The sections below pose new public
reporting burdens not currently covered
by an existing OMB-approved form;
therefore, we provide burden estimates
for them. We are seeking approval for
these regulation sections under the
revised SSA Forms SSA–1694 (0960–
0731) and SSA 1696 (OMB No. 0960–
0527), which we will use to collect the
information required by these revised
sections. Below we provide burden
estimates for the public reporting
requirements we are revising:

Average
burden per
response
(minutes)

Frequency of
response

Estimated
total annual
burden
(hours)

Average
theoretical
hourly cost
amount
(dollars) **

Total annual
opportunity
cost
(dollars) ***

1,100,000

1

7

128,333

** $12.81

*** $1,643,946

1,100,000

1

5

91,667

** 73.86

*** 6,770,525

500,000

1

5

* 41,667

** 73.86

*** 3,077,525

150,000

1

3

7,500

** 73.86

*** 553,950

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Federal Register / Vol. 88, No. 149 / Friday, August 4, 2023 / Proposed Rules
Description
of public
reporting
requirement

Regulation section

404.1735, 416.1535, SSA–
1694 (0960–0731).

Totals ..............................

Number of
respondents
(annually)

Average
burden per
response
(minutes)

Frequency of
response

Estimated
total annual
burden
(hours)

Average
theoretical
hourly cost
amount
(dollars) **

Total annual
opportunity
cost
(dollars) ***

An entity is eligible for direct
payment if the entity:
(a) has an Employment Identification Number,
(b) is registered with us in
the manner we prescribe,
(c) has not been found ineligible for direct payment,
(d) designates and maintains
a registered representative
as a point of contact to
speak and act on the entity’s behalf,
(e) accepts payment via electronic transfer, and
(f) conforms to our rules.

7,000

1

18

2,100

** 73.86

*** 155,106

................................................

2,857,000

........................

........................

271,267

........................

*** 12,201,052

TKELLEY on DSK125TN23PROD with PROPOSALS

* This is not additional burden but part of the existing burden for those representatives who complete this instrument but also check the assignment box. We include
it here to indicate a change in burden for this regulatory section.
** We based these figures on average Legal Service hourly salary, as reported by Bureau of Labor Statistics data (https://www.bls.gov/oes/current/oes231011.htm)
and the average DI payments based on SSA’s current FY 2023 data (https://www.ssa.gov/legislation/2023factsheet.pdf).
*** This figure does not represent actual costs that SSA is imposing on recipients of Social Security payments to complete this application; rather, these are theoretical opportunity costs for the additional time respondents will spend to complete the application. There is no actual charge to respondents to complete the
application.

SSA submitted revised Information
Collection Requests under both OMB
Numbers 0960–0527 and 0960–0731 for
clearance to OMB. We are soliciting
comments on the burden estimate; the
need for the information; its practical
utility; ways to enhance its quality,
utility, and clarity; and ways to
minimize the burden on respondents,
including the use of automated
techniques or other forms of information
technology. If you would like to submit
comments, please send them to the
following locations:
Office of Management and Budget,
Attn: Desk Officer for SSA, Fax Number:
202–395–6974, Email address: OIRA_
[email protected].
Social Security Administration,
OLCA, Attn: Reports Clearance Director,
Mail Stop 3253 Altmeyer, 6401 Security
Blvd., Baltimore, MD 21235, Fax: 410–
966–2830, Email address:
[email protected].
You can submit comments until
October 3, 2023, which is 60 days after
the publication of this notice. However,
your comments will be most useful if
you send them to SSA by September 5,
2023, which is 30 days after publication.
To receive a copy of the OMB clearance
package, contact the SSA Reports
Clearance Officer using any of the above
contact methods. We prefer to receive
comments by email or fax.
List of Subjects
20 CFR Part 404
Administrative practice and
procedure; Blind; Disability benefits;
Old-Age, Survivors, and Disability

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Insurance; Reporting and recordkeeping
requirements; Social Security.

Authority: 42 U.S.C. 405(a), 406, 902(a)(5),
and 1320a–6.

20 CFR Part 416

■

Administrative practice and
procedure; Aged, Blind, Disability
benefits, Public assistance programs;
Reporting and recordkeeping
requirements; Supplemental Security
Income (SSI).
20 CFR Part 422
Administrative practice and
procedure; Reporting and recordkeeping
requirements; Social security.
The Acting Commissioner of the
Social Security Administration, Kilolo
Kijakazi, Ph.D., M.S.W., having
reviewed and approved this document,
is delegating the authority to
electronically sign this document to
Faye I. Lipsky, who is the primary
Federal Register Liaison for SSA, for
purposes of publication in the Federal
Register.
Faye I. Lipsky,
Federal Register Liaison, Office of Legislation
and Congressional Affairs, Social Security
Administration.

For the reasons stated in the
preamble, we propose to amend 20 CFR
chapter III, parts 404, 416 and 422, as
set forth below:
PART 404—FEDERAL OLD-AGE,
SURVIVORS AND DISABILITY
INSURANCE (1950–)
Subpart R—Representation of Parties
1. The authority citation for subpart R
of part 404 is revised to read as follows:

■

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2. In § 404.1703, add definitions for
‘‘Assignment,’’ ‘‘Point of Contact,’’ and
‘‘Registration’’ in alphabetical order,
and revise the definition of
Representative to read as follows:

§ 404.1703

Definitions.

Assignment means the transfer of the
right to receive direct payment of an
authorized fee to an entity as described
in § 404.1730(e).
*
*
*
*
*
Point of Contact means an individual
who is a registered representative
selected by an entity to speak and act on
the entity’s behalf and who assumes the
affirmative duties and obligations we
prescribe.
Registration means a process by
which a representative or entity
provides the information we require to
conduct business with us.
*
*
*
*
*
Representative means an attorney
who meets all of the requirements of
§ 404.1705(a), or a person other than an
attorney who meets all of the
requirements of § 404.1705(b), and
whom you appoint to represent you in
dealings with us. For purposes of our
rules of conduct and standards of
responsibility, Representative also
includes an individual who provides
representational services and an
individual who is listed as a point of
contact for an entity, as applicable to
their identified role.
*
*
*
*
*

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Federal Register / Vol. 88, No. 149 / Friday, August 4, 2023 / Proposed Rules
3. In § 404.1705, redesignate
paragraph (c) as paragraph (d) and add
a new paragraph (c), and revise newly
redesignated paragraph (d) to read as
follows:

■

§ 404.1705 Who may be your
representative.

*

*
*
*
*
(c) Your representative(s) must be
registered with us in the manner we
prescribe before you submit the
appointment(s).
(d) We may refuse to recognize your
chosen representative if the person does
not meet the requirements in this
section. We will notify you and the
proposed representative if we do not
recognize the person as your
representative.
4. Revise § 404.1707 to read as
follows:

■

§ 404.1707

Appointing a representative.

We will recognize a person as your
representative if:
(a) You and your representative
complete and sign our prescribed
appointment form, and
(b) You or your representative file our
prescribed appointment form in the
manner we designate.
5. In § 404.1720, add new paragraph
(f) to read as follows:

■

§ 404.1720
services.

Fee for a representative’s

*

*
*
*
*
(f) Assignment of fees. A
representative who is eligible for direct
payment of an authorized fee may
assign the authorized fee to an entity
that is eligible for direct payment of fees
(see 404.1730(e) and 404.1735).
6. In § 404.1730, revise the heading of
paragraph (b), revise paragraph (b)(1),
redesignate (b)(1)(i) as (b)(1)(iii) and
(b)(1)(ii) as (b)(1)(iv), add new
paragraphs (b)(1)(i) and (b)(1)(ii), and
add a new paragraph (e) to read as
follows:

■

§ 404.1730

Payment of fees.

TKELLEY on DSK125TN23PROD with PROPOSALS

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(b) Fees we may pay—(1) Attorneys
and eligible non-attorneys. Except as
provided in paragraph (c) of this
section, if we make a determination or
decision in your favor and you were
represented by an attorney or an eligible
non-attorney (see § 404.1717), and as a
result of the determination or decision
you have past-due benefits,
(i) We will pay your representative
out of the past-due benefits the lesser of
the amounts in paragraph (b)(1)(iii) or
(iv) of this section, less the amount of
the assessment described in paragraph

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(d) of this section, unless the
representative submits to us in writing
a waiver of the fee or direct payment of
the fee, and
(ii) If there is a valid assignment (see
paragraph (e) of this section), we will
pay the representative’s fee (see
paragraph (b)(1)(i) of this section) to an
entity.
*
*
*
*
*
(e) Assignment of a fee to designated
entity (1) A representative may assign
the fee we authorize to an eligible entity
if the representative:
(i) Is eligible for direct payment,
(ii) Has not waived the fee or direct
payment,
(iii) Assigns the entire fee we
authorize to one entity,
(iv) Makes the assignment before the
date on which we notify you of our first
favorable determination or decision, and
(v) Affiliates with the entity through
registration.
(2) A representative may rescind an
assignment before the date on which we
notify you of our first favorable
determination or decision.
(3) A representative may not assign a
fee to an entity that is ineligible to
receive direct payment.
(4) A representative may not waive a
fee or direct payment of a fee if the
representative previously assigned a fee
in accordance with paragraph (e)(1) of
this section and did not timely rescind
that assignment in accordance with
paragraph (e)(2) of this section.
■

7. Add § 404.1735 to read as follows:

§ 404.1735 Entity eligible for direct
payment of fees.

An entity is eligible for direct
payment of an authorized fee if the
entity:
(a) Has an Employer Identification
Number,
(b) Has registered with us in the
manner we prescribe,
(c) Has not been found ineligible for
direct payment,
(d) Designates and maintains an
employee who is a registered
representative as a point of contact to
speak and act on the entity’s behalf,
(e) Accepts payment via electronic
funds transfer, and
Conforms to our rules.
8. In § 404.1740, add a new paragraph
(c)(15) to read as follows:

51755

affirmative duties, engage in prohibited
actions, or conduct dealings with us in
a manner that is untruthful or does not
further the efficient and prompt
correction of a fee error.
PART 416—SUPPLEMENTAL
SECURITY INCOME FOR THE AGED,
BLIND, AND DISABLED
Subpart O—Representation of Parties
9. The authority citation for subpart O
of part 416 is revised to read as follows:

■

Authority: 42 U.S.C. 405(a), 406, 902(a)(5),
and 1320a–6.

10. In § 416.1503, add definitions for
‘‘Assignment,’’ ‘‘Point of Contact,’’ and
‘‘Registration’’, and revise the definition
of ‘‘Representative’’ to read as follows:

■

§ 416.1503

Definitions.

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*
*
Assignment means the transfer of the
right to receive direct payment of an
authorized fee to an entity as described
in § 416.1530(e).
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*
*
*
*
Point of Contact means an individual
who is a registered representative
selected by an entity to speak and act on
the entity’s behalf and who assumes the
affirmative duties and obligations we
prescribe.
Registration means a process by
which a representative or entity
provides the information we require to
conduct business with us.
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*
*
*
*
Representative means an attorney
who meets all of the requirements of
§ 416.1505(a), or a person other than an
attorney who meets all of the
requirements of § 416.1505(b), and
whom you appoint to represent you in
dealings with us. For purposes of our
rules of conduct and standards of
responsibility, Representative also
includes an individual who provides
representational services and an
individual who is listed as a point of
contact for an entity, as applicable to
their identified role.
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*
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*
*
■ 11. In § 416.1505, redesignate
paragraph (c) as paragraph (d) and add
a new paragraph (c), and revise newly
redesignated paragraph (d) to read as
follows:

■

§ 404.1740 Rules of conduct and
standards of responsibility for
representatives.

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*
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*
(c) * * *
(15) While serving as a point of
contact for an entity, violate applicable

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§ 416.1505 Who may be your
representative.

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*
(c) Your representative(s) must be
registered with us in the manner we
prescribe before you submit the
appointment(s).
(d) We may refuse to recognize your
chosen representative if the person does

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51756

Federal Register / Vol. 88, No. 149 / Friday, August 4, 2023 / Proposed Rules

not meet the requirements in this
section. We will notify you and the
proposed representative if we do not
recognize the person as your
representative.
12. Revise § 416.1507 to read as
follows:

■

§ 416.1507

Appointing a representative.

We will recognize a person as your
representative if:
(a) You and your representative
complete and sign our prescribed
appointment form, and
(b) You or your representative file our
prescribed appointment form in the
manner we designate.
13. In § 416.1520, add new paragraph
(f) to read as follows:

■

§ 416.1520
services.

Fee for a representative’s

■

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*
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*
*
(f) Assignment of fees. A
representative who is eligible for direct
payment of an authorized fee may
assign the authorized fee to an entity
that is eligible for direct payment of fees
(see 416.1530(e) and 416.1535).
14. In § 416.1530, revise the heading
of paragraph (b), revise paragraph (b)(1),
and add a new paragraph (e) to read as
follows:

■

§ 416.1530

Payment of Fees.

TKELLEY on DSK125TN23PROD with PROPOSALS

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*
*
*
*
(b) Fees we may pay. (1) Attorneys
and eligible non-attorneys. Except as
provided in paragraph (c) of this
section, if we make a determination or
decision in your favor and you were
represented by an attorney or an eligible
non-attorney (see 416.1517), and as a
result of the determination or decision
you have past-due benefits,
(i) We will pay your representative
out of the past-due benefits the lesser of
the amounts in paragraph (b)(1)(iii) or
(iv) of this section, less the amount of
the assessment described in paragraph
(d) of this section, unless the
representative submits to us in writing
a waiver of the fee or direct payment of
the fee, and
(ii) If there is a valid assignment (see
paragraph (e) of this section), we will
pay the representative’s fee (see
paragraph (b)(1)(i) of this section) to an
entity.
*
*
*
*
*
(e) Assignment of a fee to designated
entity (1) A representative may assign
the fee we authorize to an eligible entity
if the representative:
(i) Is eligible for direct payment,
(ii) Has not waived the fee or direct
payment,

VerDate Sep<11>2014

(iii) Assigns the entire fee we
authorize to one entity,
(iv) Makes the assignment before the
date on which we notify you of our first
favorable determination or decision, and
(v) Affiliates with the entity through
registration.
(2) A representative may rescind an
assignment before the date on which we
notify you of our first favorable
determination or decision.
(3) A representative may not assign a
fee to an entity that is ineligible to
receive direct payment.
(4) A representative may not waive a
fee or direct payment of a fee if the
representative previously assigned a fee
in accordance with paragraph (e)(1) of
this section and did not timely rescind
that assignment in accordance with
paragraph (e)(2) of this section.

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15. Add § 416.1535 to read as follows:

§ 416.1535 Entity eligible for direct
payment of fees.

An entity is eligible for direct
payment of an authorized fee if the
entity:
(a) Has an Employer Identification
Number
(b) Has registered with us in the
manner we prescribe,
(c) Has not been found ineligible for
direct payment,
(d) Designates and maintains an
employee who is a registered
representative as a point of contact to
speak and act on the entity’s behalf,
(e) Accepts payment via electronic
funds transfer, and
Conforms to our rules.
16. In § 416.1540, add a new
paragraph (c)(15) to read as follows:

■

§ 416.1540 Rules of conduct and
standards of responsibility for
representatives.

*

*
*
*
*
(c) * * *
(15) While serving as a point of
contact for an entity, violate applicable
affirmative duties, engage in prohibited
actions, or conduct dealings with us in
a manner that is untruthful or does not
further the efficient and prompt
correction of a fee error.
PART 422—ORGANIZATION AND
PROCEDURES
Subpart F—Applications and Related
Forms
17. The authority citation for subpart
F of part 422 is revised to read as
follows:

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Authority: 42 U.S.C. 1320b–10(a)(2)(A).

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18. In § 422.515, revise the
designation of form SSA–1696 to read as
follows:

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§ 422.515 Forms used for withdrawal,
reconsideration and other appeals, and
appointment of representative.

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*
SSA–1696—Claimant’s Appointment
of Representative. (For use by claimants
or representatives as a notice of their
appointment of a representative in a
claim, issue, or other matter that is
pending a determination or a decision
before the agency).
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*
[FR Doc. 2023–16405 Filed 8–3–23; 8:45 am]
BILLING CODE 4191–02–P

DEPARTMENT OF THE TREASURY
Internal Revenue Service
26 CFR Part 1
[REG–109348–22]
RIN 1545–BQ69

Identification of Monetized Installment
Sale Transactions as Listed
Transactions
Internal Revenue Service (IRS),
Treasury.
ACTION: Notice of proposed rulemaking
and notice of public hearing.
AGENCY:

This document contains
proposed regulations that would
identify monetized installment sale
transactions and substantially similar
transactions as listed transactions, a
type of reportable transaction. Material
advisors and participants in these listed
transactions would be required to file
disclosures with the IRS and would be
subject to penalties for failure to
disclose. The proposed regulations
would affect participants in those
transactions as well as material
advisors. This document also provides a
notice of a public hearing on the
proposed regulations.
DATES:
Comments: Electronic or written
comments must be received by October
3, 2023.
Public Hearing: The public hearing is
scheduled to be held on October 12,
2023, at 10:00 a.m. ET. Pursuant to
Announcement 2023–16, 2023–20 I.R.B.
854 (May 15, 2023), the public hearing
is scheduled to be conducted in person,
but the IRS will provide a telephonic
option for individuals who wish to
attend or testify at the hearing by
telephone. Requests to speak and
outlines of topics to be discussed at the
SUMMARY:

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