Attorney Fee Form 1099–MISC Reporting
· Name of project.
Attorney Fee Form 1099–MISC Reporting
· Unique project identifier.
TBD
· Contact name and telephone number.
Director
Office of Program Accounting Operations
Office of Financial Policy and Operations
Office of Budget, Finance and Management
Social Security Administration
· Describe the information to be collected, why the information is being collected, the intended use of the information and with whom the information will be shared.
Attorney and Eligible Direct Pay Non-Attorney (EDPNA) File
Under sections 206(a) and 1631(d)(2) of the Social Security Act and sections 302 and 303 of the Social Security Protection Act (SSPA) of 2004 (Pub. L. No. 108-203), SSA has the authority and responsibility to determine the maximum fees that claimants’ representatives may charge and collect from claimants they represent before SSA, and to directly pay those fees out of claimants’ past-due benefits to attorney and EDPNA representatives. SSA is also responsible to directly pay fees awarded to an attorney by a Federal court under sections 206(b) and 1631(d)(2) of the Act.
Changes in the Internal Revenue Service Federal Income Tax Regulations
(26 C.F.R. Part 1), publicized under sections 6041 and 6045 of the Internal Revenue Code (IRC) require SSA, in the course of its business, to issue 1099-MISC information returns for cumulative payments of $600.00 or more in a calendar year to representatives who meet the requirements to receive representational fee payments.
To facilitate the issuance of the 1099-MISC information returns, SSA will collect information from claimants’ representatives who are eligible to receive direct payment of representational fees and from employers of representatives (e.g., Firms and other entities) who wish to receive an informational 1099-MISC for fee payments made to the representative associated with the entity.
Collection of Information
Representatives appointed by the claimant. Representatives appointed by the claimant will complete and file a mandatory SSA-1965 (Identifying Information for Possible Direct Payment of Authorized Fees). The SSA-1695 collects information specific to the claimant, the wage earner if different from the claimant, the representative, and the representative’s employer if he/she is an employee of a Firm or other entity.
Appointed representatives. Appointed representatives will complete and file a mandatory SSA-1699 (Request for Appointed Representative’s Direct Payment Information). The SSA-1699 collects personal and professional information about the representative as well as information about his/her existing business affiliations as an appointed representative and any other business affiliations. The information is required to register for direct payment and receipt of the 1099-MISC information return.
Employers or other entities. Employers or other entities may complete and file an SSA-1694 (Request for Business Entity Taxpayer Information). The SSA-1694 collects information specific to the entity such as business name, employer identification number, and tax mailing address. The information is necessary if the entity would like to receive an informational 1099-MISC for fee payments made to the representative associated with the entity.
The information collected under these categories will be maintained in the newly established Attorney Representative database. The initial population of information to the database will come from the SSA-1694, SSA-1695, and SSA 1699. Information in the database will be disclosed only to the subject of the record, under routine use, as otherwise required by Federal law, or to contractors, as necessary, to assist SSA in the efficient administration of its programs. A full list of routine uses applicable to this information collection may be found in the Attorney/EDPNA 1099-MISC File system of records notice.
· Describe the administrative and technological controls that are in place or that are planned to secure the information being collected.
Only authorized SSA personnel who have a need for the information in the performance of their official duties will be permitted access to the information. We will safeguard the security of the information by requiring the use of access codes to enter the computer systems that will maintain the data and will store computerized records in secured areas that are accessible only to employees who require the information to perform their official duties. Any manually maintained records will be kept in locked cabinets or in otherwise secure areas. Furthermore, SSA employees having access to SSA databases maintaining personal information must sign a sanction document annually, acknowledging their accountability for making unauthorized access to or disclosure of such information.
· Describe the impact on individuals’ privacy rights.
Are individuals afforded an opportunity to decline to provide information?
We collect information only where we have specific legal authority to do so and this information is collected primarily to administer our responsibilities under the Social Security Act. When we collect information from individuals, we advise them of our legal authority for requesting the information and explain the effect(s) on them if they choose not to provide the information. The individual can then make an informed decision as to whether to provide the information or not.
The new database will maintain only that information that is necessary for the efficient and effective control and processing of requests for direct fee payment. The database will also maintain only information that is necessary for the efficient, timely and accurate issuance of 1099-MISC information returns. Security measures will be employed that protect access to and preclude unauthorized disclosure of records in the proposed system.
Are individuals afforded an opportunity to consent to only particular uses of the information?
When we collect information from individuals, we advise them of the purposes for which we will use the information. We further advise them that we will disclose this information without their prior written consent only when we have specific authority in Federal statute (e.g., the Privacy Act) to do so.
· Does the collection of this information require a new system of records under the Privacy Act (5 U.S.C. § 552a) or an alteration to an existing system of records?
A new system of records was established on July 25, 2006 (71 F.R. 42164), entitled Attorney/EDPNA 1099-MISC File (60-0325) and routine uses applicable to the system of records.
PIA CONDUCTED BY PRIVACY OFFICER, SSA:
______________________________ August 28, 2006
SIGNATURE DATE
PIA REVIEWED BY SENIOR AGENCY PRIVACY OFFICIAL, SSA:
/S/ Thomas W. Crawley September 14, 2006
SIGNATURE DATE