Consequences of Fraudulent Concealment of Work Activity During a Trial Work Period, § 404.471

The Social Security Administration (SSA) offers disability benefits to eligible individuals under Title II of the Social Security Act.

Beneficiaries of these disability benefits may engage in a trial work period to test their ability to work while still receiving benefits. However, it is crucial for beneficiaries to understand the consequences of fraudulently concealing work activity during this period, as doing so can lead to severe penalties. In this blog post, we will discuss Section 404.471, which outlines the consequences for those convicted of fraudulently concealing work activity during a trial work period.

Nonpayment of Disability Benefits (§ 404.471 (a))

According to Section 404.471 (a), if a beneficiary is convicted by a federal court of fraudulently concealing work activity during a trial work period (starting with work activity performed in March 2004 and thereafter), they will not be eligible for monthly disability benefits for the months in which they performed services during that trial work period prior to the conviction. Furthermore, any benefits already received for months of work activity in the trial work period prior to the conviction will be considered an overpayment on the record.

What Constitutes Fraudulent Concealment of Work Activity? (§ 404.471 (b))

A beneficiary can be found guilty of fraudulently concealing work activity if they:

1. Provide false information to the SSA concerning the amount of earnings they received or are receiving for a particular period;
2. Receive disability benefits while engaging in work activity under another identity (such as working under another social security number or a forged social security number); or
3. Take other actions to conceal work activity with the intent of fraudulently obtaining benefits in excess of amounts that are due.

Example of Fraudulent Concealment of Work Activity During a Trial Work Period

Meet Jane, a beneficiary receiving disability benefits under Title II of the Social Security Act. She decides to take advantage of the trial work period to explore her capacity to work while still receiving her monthly benefits. During this trial work period, Jane starts working part-time at a local store and earns $1,500 per month.

However, instead of reporting her earnings honestly to the Social Security Administration (SSA), Jane decides to conceal her work activity. She provides false information to the SSA, stating that she is only earning $500 per month, with the intent to continue receiving her full disability benefits without any adjustments.

After some time, the SSA discovers Jane’s fraudulent activity and she is subsequently convicted by a federal court for fraudulently concealing her work activity during the trial work period. As a result of her conviction, Jane loses her monthly disability benefits for the months she performed services during the trial work period prior to her conviction. Moreover, the benefits she already received for those months are now considered an overpayment on her record, and Jane may be required to repay those amounts to the SSA.

Conclusion: It is essential for disability beneficiaries to be aware of the consequences of fraudulently concealing work activity during a trial work period. Engaging in such activities can lead to the loss of benefits, overpayment on the record, and potential legal repercussions. To maintain eligibility for disability benefits, beneficiaries should ensure that they are transparent and honest with the SSA about their work activity and earnings during a trial work period.

https://www.ssa.gov/OP_Home/cfr20/404/404-0471.htm