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Direct Fee Payment to Representatives and Form 1099-MISC

Direct Fee Payment to Representatives and Form 1099-MISC. Social Security Administration. Introduction. We are required to provide taxpayer information to the IRS for direct fee payments made to representatives of claimants for Social Security benefits. www.socialsecurity.gov. Introduction.

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Direct Fee Payment to Representatives and Form 1099-MISC

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  1. Direct Fee Payment to Representatives and Form 1099-MISC Social Security Administration

  2. Introduction We are required to provide taxpayer information to the IRS for direct fee payments made to representatives of claimants for Social Security benefits. www.socialsecurity.gov

  3. Introduction For us to pay all or part of an approved fee directly to you from a claimant’s past-due benefits, you must request direct payment. www.socialsecurity.gov

  4. Requesting Direct Fee Payment You must request direct payment by completing Form SSA-1699, Registration for Appointed Representative Services and Direct Payment. This is a one-time registration. www.socialsecurity.gov

  5. Requesting Direct Fee Payment If you are providing services to Social Security claimants as an appointed representative for a relative, friend or other acquaintance, you do not need to complete SSA-1699. www.socialsecurity.gov

  6. Requesting Direct Fee Payment You can complete a paper SSA-1699 online by typing your responses in the PDF form. Print, sign and fax the form to (570) 270-7307. www.socialsecurity.gov

  7. Requesting Direct Fee Payment To receive direct payment, you also must submit Form SSA-1695, Identifying Information for Possible Direct Payment of Authorized Fees, each time you represent a Social Security claimant. www.socialsecurity.gov

  8. Form SSA-1695

  9. Requesting Direct Fee Payment We do not make direct fee payments to firms. We make them to individuals. However, firms or organizations that have claimant representatives may register voluntarily using Form SSA-1694, Request for Business Entity Taxpayer Information. This is a one-time registration. www.socialsecurity.gov

  10. Requesting Direct Fee Payment Firms or organizations can complete and submit SSA-1694online or on paper by downloading the form and sending it to your local Social Security office. www.socialsecurity.gov

  11. Form 1099-MISC • We send 1099-MISC to claimant representatives who received direct payments from us of $600 or more in a calendar year. • We send a separate 1099-MISC for each firm or organization you registered with. www.socialsecurity.gov

  12. Form 1099-MISC • If a firm or organization has registered with us, we also will send a 1099-MISC to the firm showing direct payments made to all representatives affiliated with the firm. • The total amount paid will be shown in Box 7 (non-employee compensation). www.socialsecurity.gov

  13. Form 1099-MISC • The law requires us to charge a user fee to cover administrative costs when we make a direct payment to you. • We deduct this user fee from the amount payable to you. You cannot collect this expense from the claimant. • The IRS considers the gross amount, before the user fee, as the amount reported on the 1099-MISC. www.socialsecurity.gov

  14. Form 1099-MISC Individual Representatives 1) PAYER’S federal identification number- Social Security’s EIN2) RECIPIENT’S identification number- Your SSN3) Account number (see instructions)- Your employer’s EIN4) Box 7- Nonemployee compensation- The amount we paid you directly in 2009 when you are identified in our records as a sole proprietor OR theamount we paid you directly in 2009 when you are identified in our records as an employee of a firm but your firm did not register using Form SSA-1694 by12/31/09. The deadline to register for tax year 2009 was 12/31/09 and is now too late for your firm to register for tax year 2009. Individuals who receive a 1099-MISC, with amounts that actually belong to another person or firm, should see general instructions for this situation on the IRS website or contact your employer. 1 2 4 3 5 5) Box 14 Gross proceeds paid to an attorney- The amount we paid you directly in 2009 when you are identified in our records as an employee of a firm that registered using Form SSA-1694. Your firm or employer also received a 1099-MISC. You do not need to report this as income to the IRS. The firm is responsible for reporting these earnings.

  15. Form 1099-MISC Organizations 1) PAYER’S federal identification number- Social Security’s EIN3) Account number (see instructions)- Your EIN4) Box 7- Nonemployee compensation- The amount we paid your employees or representatives directly in 2009 when your firm registered using Form SSA-1694 by 12/31/2009.The deadline to register for tax year 2009 was 12/31/09. It is now too late for your firm to register for tax year 2009. Individuals who receive a Form 1099-MISC, with amounts that actually belong to another person or firm, should see general instructions for this situation on the IRS website .5) Box 14 Gross proceeds paid to an attorney- The amount we paid employees or representatives directly in 2009 and the firm registered using Form SSA-1694 by 12/31/2009. Firms or employers also receive a 1099 with payment detail. The firm is responsible for reporting these earnings. 1 4 3 5

  16. Understanding the 1099-MISC Social Security’s EIN PAYER’S federal employer identification number (EIN) The EIN of the organization that issued your 1099-MISC www.socialsecurity.gov

  17. Understanding the 1099-MISC Your Social Security Number Your Social Security number always will appear on the form. If you work for a firm or organization, your Social Security number will appear in the recipient’s identification number box. If registered, your firm’s EIN will appear in the account number box. www.socialsecurity.gov

  18. Understanding the 1099-MISC If you work as a sole proprietor, your Social Security number will be the only tax identification on the form and will appear in the recipient’s identification number box. If you are a sole proprietor and have an EIN, your Social Security number will appear in the recipient’s identification number box and your EIN will appear in the account number box. www.socialsecurity.gov

  19. Understanding the 1099-MISC Your employer’s or firm’s EIN. www.socialsecurity.gov

  20. Understanding the 1099-MISCIndividual Representatives Box 7- Non-employee compensation • The amount we paid you directly when you are identified in our records as a sole proprietor. OR • The amount we paid you directly when our records identify you as a representative of a firm, but your firm did not register with us using SSA-1694 by December 31. Non-employee compensation www.socialsecurity.gov

  21. Understanding the 1099-MISCOrganizations The amount we paid your representatives directly when your firm registered with us using SSA-1694 by December 31. Box 7- Non-employee compensation Non-employee compensation www.socialsecurity.gov

  22. Understanding the 1099-MISC Box 14 - Gross proceeds paid to an attorney • The amount we paid you directly when you are identified in our records as an employee or representative of a firm that registered using SSA-1694by December 31. • Your firm or employer also received a 1099-MISC. www.socialsecurity.gov

  23. More Help • If the amount on your 1099-MISC is incomplete, you must use your own records to supplement the information you report to the IRS. • If you believe the amounts on your 1099-MISC belong to another person or firm, see general instructions for this situation on the IRS website or contact your employer. www.socialsecurity.gov

  24. More Help Please contact your local Social Security office if there is a discrepancy in the amount reflected on your 1099-MISC due to a remittance, returned check or non-receipt of a fee. www.socialsecurity.gov

  25. More Help If you have other questions about the 1099-MISC that you received from us, please call our Representative Call Center toll-free at 1-877-626-6363. www.socialsecurity.gov

  26. FAQs Question Why is my Social Security number on the Appointed Representative Form 1099-MISC? Answer The Internal Revenue Service (IRS) requires we use your Social Security number to identify you. Your Social Security number will always appear on the 1099-MISC. • If you are a sole proprietor and have an Employer Identification Number (EIN), your Social Security number will appear in the Recipient’s Identification Number box and your EIN will appear in the Account Number box. •  If you work for a firm or organization, your Social Security number will appear in the Recipient’s Identification Number block and the EIN for the firm will appear in the Account Number box. www.socialsecurity.gov

  27. FAQs Question Why do I have more than one Appointed Representative Forms 1099-MISC? Answer You will receive a separate 1099-MISC for yourself and for every firm or organization registered. You must have, however, received payments totaling $600 or more in a year. www.socialsecurity.gov

  28. FAQs Question How can I get an Appointed Representative Form 1099-MISC for years before 2009? Answer You can’t. Social Security issued the 1099-MISC for the first time for 2009. www.socialsecurity.gov

  29. FAQs Question I made more money than my Appointed Representative Form 1099-MISC reflects. How can I get the money amount corrected and the payments annotated? Answer If your 1099-MISC is incomplete, you must use your own records to supplement the information you report to the IRS. www.socialsecurity.gov

  30. FAQs Question What is Form SSA-1694 used for? Answer SSA-1694, Request forBusiness Entity Taxpayer Information, is the form we use to collect the name, address and employer identification number of a firm or organization. www.socialsecurity.gov

  31. FAQs Question Should a firm or organization complete a Form SSA-1694 on behalf of each representative in the firm? Answer No. You should complete SSA-1694, Request forBusiness Entity Taxpayer Information, once for each employer identification number (EIN) you have registered. www.socialsecurity.gov

  32. FAQs Question Where should I send my completed SSA-1694 form?  Answer We suggest you file Form SSA-1694, Request forBusiness Entity Taxpayer Information, online. However, you may submit it to your local Social Security office. www.socialsecurity.gov

  33. FAQs Question Should I file an SSA-1694 form every year? Answer No. File a Form SSA-1694, Request forBusiness Entity Taxpayer Information, only once to register a firm, organization, sole proprietor’s Employer Identification Number (EIN), or to change an existing EIN. www.socialsecurity.gov

  34. FAQs Question What is the deadline for filing a SSA-1694 form? Answer  For tax year 2009, the deadline was December 31, 2009. There is no deadline for registering a firm. However, for tax purposes, firms are encouraged to submit Form SSA-1694 (Request forBusiness Entity Taxpayer Information) by December 31st of the current calendar year. www.socialsecurity.gov

  35. FAQs Question When will the attorney fee checks be addressed to the firm and not the individual representative? Answer  At this time, Social Security does not recognize an entity or firm for payment of an Appointed Representative’s fee. This may change in the future, but is not part of our current regulations or requirements. www.socialsecurity.gov

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