What this means
m21-5:8.A.2 explains organizational responsibility for direct pay fee adjudication. In plain terms, the official guidance says the AOJ that processes the award is responsible for adjudicating whether an agent/attorney is eligible for direct payment of fees in a Fee Allocation Notice. It also addresses if fees are the result of an HLR return, the Appeal Issue Intertwined special issue should be added when the EP 400, Attorney Fee Memo, is established to control fees. This will forward the EP to DROC DC for release after the due process period expires.
How this may help with a claim
Use m21-5:8.A.2 to audit how VA handled organizational responsibility for direct pay fee adjudication. Start with the decision date, the issue being reviewed, and the evidence VA was allowed to consider, then compare the record with this rule: The AOJ that processes the award is responsible for adjudicating whether an agent/attorney is eligible for direct payment of fees in a Fee Allocation Notice. If fees are the result of an HLR return, the Appeal Issue Intertwined special issue should be added when the EP 400, Attorney Fee Memo, is established to control fees. Cite the exact document and page when raising a factual or procedural error, and use the review rights in the actual notice for any deadline.
What to review in your file
- Check the file against this official condition: Generally, when fees are deducted from an award, the AOJ which adjudicated eligibility of the agent/attorney to direct payment of fees and issued the Fee Allocation Notice is responsible for releasing fees once due process expires, unless
- Confirm that the record or notice addresses this source point: If fees are the result of an HLR return, the Appeal Issue Intertwined special issue should be added when the EP 400, Attorney Fee Memo, is established to control fees.
- Document how this stated step or exception applies: Once an EP 030, Board Grant Non-Rating, or EP 040, Board DTA Error Non-Rating, is established upon the receipt of a BVA remand/decision, whichever DROC has jurisdiction over the EP 030/040 should request brokering of the EP 400 and perform any required remand actions and/or release fees.
Important limits
m21-5:8.A.2 explains VA guidance for organizational responsibility for direct pay fee adjudication; it does not guarantee an award or replace the statutes, regulations, binding decisions, and review instructions that control an individual claim. Conditions and exceptions still matter, including this source point: The AOJ that processes the award is responsible for adjudicating whether an agent/attorney is eligible for direct payment of fees in a Fee Allocation Notice. The finance activity at the RO is part of the Support Services Division (SSD). When requested by the AAFC, the finance activity is responsible for entering finance transactions to
Search terms when useful
Phrases that may help when searching your claim file or this library.
- Organizational Responsibility for Direct Pay Fee Adjudication
- m21-5:8.A.2
- Organizational Responsibility Direct
- Pay Fee Adjudication
- Cases Roles Routing Responsibilities
- organizational responsibility direct adjudication
- jurisdictional responsibility releasing fees
- AAFC role associated duties
Original VA guidance
The official VA text of this section
2. Fee Cases – Roles, Routing, and Responsibilities
Introduction
This topic contains information on responsibility for fee processing, including
- organizational responsibility for direct pay fee adjudication
- jurisdictional responsibility for releasing fees
- AAFC role and associated duties
- Support Services Division (SSD) responsibilities, and
- using flashes in fee cases.
Change Date
September 15, 2025
8.A.2.a. Organizational Responsibility for Direct Pay Fee Adjudication
The AOJ that processes the award is responsible for adjudicating whether an agent/attorney is eligible for direct payment of fees in a Fee Allocation Notice.
BVA adjudicates any appeal of a fee eligibility determination rendered in a Fee Allocation Notice.
References: For more information on
- jurisdiction over fee determinations and appeals, see 38 CFR 14.636(i)
- making an agent or attorney fee decision and sending notification, see M21-5, Chapter 8, Section B, 3, and
- appeals from fee decisions, see
- 38 CFR 14.636(i)(2), and
- M21-5, Chapter 8, Section B, 4.a.
8.A.2.b. Jurisdictional Responsibility for Releasing Fees
Generally, when fees are deducted from an award, the AOJ which adjudicated eligibility of the agent/attorney to direct payment of fees and issued the Fee Allocation Notice is responsible for releasing fees once due process expires, unless
- fees are the result of an HLR return (duty to assist error or difference of opinion), in which case the Decision Review Operations Center (DROC) DC is responsible for releasing fees, or
- an appeal of the fee decision is submitted to BVA, in which case any of the three DROCs is responsible for releasing fees (or performing remand actions) once BVA issues a decision.
If fees are the result of an HLR return, the Appeal Issue Intertwined special issue should be added when the EP 400, Attorney Fee Memo, is established to control fees. This will forward the EP to DROC DC for release after the due process period expires.
Once an EP 030, Board Grant Non-Rating, or EP 040, Board DTA Error Non-Rating, is established upon the receipt of a BVA remand/decision, whichever DROC has jurisdiction over the EP 030/040 should request brokering of the EP 400 and perform any required remand actions and/or release fees.
References: For more information on
- organizational responsibility for direct pay fee adjudication, see M21-5, Chapter 8, Section A, 2.a
- utilizing the Appeal Issue Intertwined special issue, see M21-5, Chapter 8, Section B, 1.a, and
- appeals from fee decisions, see
- 38 CFR 14.636(i)(2), and
- M21-5, Chapter 8, Section B, 4.a.
8.A.2.c. AAFC Role and Associated Duties
The AAFC serves as the liaison between the AOJ and accredited attorneys and agents. Duties of the AAFC include, but are not limited to,
- checking
- for the presence and completeness of VA Form 21-22a
- the accreditation of the agent or attorney, and
- for the presence, completeness, and timeliness of a direct pay fee agreement
- contacting the agent or attorney in cases where there are deficiencies, problems, or ambiguities involving accreditation, appointment, or the fee agreement
- performing system updates as appropriate, including
- ensuring the appropriate representative’s POA code is assigned
- attaching attorney fee flashes
- entering special issues, and
- taking action with respect to EPs
- making determinations related to direct payment of fees, including
- the amount of past-due benefits (if any)
- the amount needed for potential direct payment of fees
- if the agent or attorney is eligible for payment of fees, and
- allocation of fees, and
- facilitating the process of direct payment of fees, as applicable, by
- requesting the finance activity to perform financial transactions to make funds available for potential payment of fees
- reviewing the preparation of the claimant’s award
- authorizing a Fee Allocation Notice and sending the notice to the claimant and all agents/attorneys who represented the claimant on the case
- monitoring whether or not a fee determination is appealed, and if so, when the appeal is closed, and
- requesting release of fees as determined in the Fee Allocation Notice or as directed by BVA or OGC.
References: For more information on
- contacting an AAFC for assistance or questions regarding a fee case, see the Regional Benefit Office Directory for a list of corporate mailboxes for each station
- accreditation and appointment requirements for agents and attorneys, see M21-1, Part I, Subpart i, 2.A
- the AAFC’s duty with respect to an agent or attorney who is not listed on the OGC accreditation website, see M21-5, Chapter 8, Section A, 3.b
- the requirement for the AAFC to review agent or attorney appointments and fee agreements for sufficiency or other actions, see M21-5, Chapter 8, Section A, 3
- the actions required for adding or correcting a representative's POA code, see M21-1, Part I, Subpart i, 2.C.3.b and c
- the AAFC role in monitoring whether an appeal has been filed and requesting release of amounts for direct payment of fees, see M21-5, Chapter 8, Section B, 4, and
- the stages in the process for considering entitlement to direct payment of fees that the AAFC is responsible for, see M21-5, Chapter 8, Section B, 1.a.
8.A.2.d. SSD Responsibilities
The finance activity at the RO is part of the Support Services Division (SSD). When requested by the AAFC, the finance activity is responsible for entering finance transactions to
- make funds available for payment of fees, and
- release fees minus an assessment.
The AAFC and finance activity must communicate in writing and tracked according to station policy (email via SSD mailbox, SharePoint site, etc.).
References: For more information on
- calculating and making funds available for fees, see
- M21-5, Chapter 8, Section B, 1.a and c, and
- M21-5, Chapter 8, Section B, 2
- release of fees, see
- M21-5, Chapter 8, Section B, 1.a and b, and
- M21-5, Chapter 8, Section B, 4, and
- SSD mailbox addresses, see the SSD-FINANCE DIRECTORY tab at the bottom of the SSD points of contact page.
8.A.2.e. Using Flashes in Fee Cases
When a claims processor is performing intake based on receipt of a fee agreement, the claims processor will contact the AAFC and add the Potential Attorney Fee flash to the corporate record so that the AAFC can perform duties specified in M21-5, Chapter 8, Section A, 2.c, including but not limited to, checking accreditation, checking the documents for sufficiency, and contacting the agent or attorney in cases where there are deficiencies, problems, or ambiguities. The table below describes the necessary flashes to apply based on the validity of the fee agreement.
Scroll sideways to see the full table.
| If review of the fee agreement shows the document is... | Then... |
|---|---|
| valid | the AAFC must remove the Potential Attorney Fee flash from the corporate record and apply the Private Attorney - Fees Payable flash. the Private Attorney - Fees Payable flash must remain until the fee agreement is withdrawn (entitlement to future fees are unambiguously waived) by the representative or otherwise no longer requires making funds available for possible payment of fees (no possibility of payment, i.e., full grant of benefits for which the agent/attorney provided representation). |
| invalid | the AAFC must complete the actions outlined in M21-5, Chapter 8, Section A, 3.d. once all necessary actions are completed, the AAFC will add a permanent note to the eFolder explaining the specific deficiency in the fee agreement and remove the Potential Attorney Fee flash from the corporate record. |
Note: An unambiguous waiver is one that clearly waives fees between the agent/attorney and the Veteran/claimant without any stipulations or conditions. If the waiver has any stipulations or conditions (e.g., an attorney waives fees if they are paid to another attorney at the same firm), do not consider it an unambiguous waiver.
References: For more information on
- the AAFC role and associated duties, see M21-5, Chapter 8, Section A, 2.c
- National Work Queue (NWQ), see the NWQ Playbook, and
- use of corporate flashes, see
- M21-1, Part III, Subpart i, 2.F, and
- M21-4, Appendix E.