The main problem with the tax application system is the usually long delay before payment. Prior to mid-1991, when the royalty agreement procedure came into force, it was not uncommon for it to last six months from the date of the favourable decision to authorize a royalty application and an additional three months for payment. After the pricing process is opened, lawyers report that in most hearing offices, it takes even longer for a royalty application to be accepted. Cynics say this is a deliberate attempt by policy makers to prevent the use of royalty applications and to encourage the use of the pricing process, a system that requires very little time for decision-makers. Those who are more charitable are not surprised to see that decision-makers who do not appreciate the royalty petition procedure such as lawyers and who have faced a significant fee lag in recent years give low priority to the authorization to apply for a tax. In some cases, approval of a pricing agreement is not administratively possible, either because it could lead to the authorization of a fee exceeding the legal limit under the pricing contract procedure, or, by other means, to the unfairness of an applicant or representative. Therefore, SSA will not authorize a royalty agreement to authorize a representative`s fee in the following situations: legal fees in disability and social security ISS are regulated. 42 U.S.C 406 (a) and 1383 (d) (2). The Social Security Administration (SSA) must approve your fees for work done before the Agency, unless one of the very limited exceptions to this rule applies.
See point 746. If you accept unauthorized fees, you may be liable to a fine of more than $500.00 or imprisonment of more than a year or both. 42 U.S.C No. 406 (a) (5). You may also lose your right to practice before the Social Security Administration. 20 C.F.R. 404.1745. Lawyers have found that the royalty agreement procedure, in cases that take time, for example. B for complaints outside the ALJ hearing level, pay less royalties than the tax application process. In fact, the more hours a lawyer spends on a case, the lower the average hourly fee because, as part of the pricing contract procedure, the fee is limited to a maximum of $5,300. However, as we shall see, it is possible to charge higher fees in cases where complaints exceed the ALJ level of consultation using a two-step pricing agreement.
See point 703 and the two-stage royalty agreement at 178.3.1. When a SSA decision maker authorizes a pricing agreement that does not comply with the legal requirements of the law or is otherwise exempt, SSA cannot authorize a fee as part of the pricing process. In such cases, an SSA reviewer will reject the pricing agreement and signal to the applicant and agent that: one of the legal conditions for approving a royalty agreement is that the parties submit the agreement to the SSA before the date of the favourable decision.