Payee Number Requirements
There are four types of Comptroller-assigned TINs:
- System-assigned 7 TINs — for individuals who are set up with an SSN or ITIN
- Comptroller-assigned 3 TINs — referred to as “temporary numbers”
- Comptroller taxpayer numbers — restricted for Comptroller use
- Agency repeater numbers — based on the agency’s three-digit agency number
System-assigned 7 TINs
The Comptroller’s office no longer uses an individual’s Social Security number (SSN) or Individual Taxpayer Identification Number (ITIN) as the base number for a TIN. To protect the confidentiality of the payees’ SSNs and ITINs, TINS assigns a randomly-based 7 TIN for these payees. The 7 TINs are assigned to both payees and state debtors who is set up with an SSN or ITIN.
Comptroller-assigned 3 TINs
Agencies may need to make payments to businesses located outside the United States or to foreign individuals who reside in the United States. Some of these payees may have an SSN, ITIN or Employer identification number (EIN) while others may not.
If the payee is a foreign entity or non-resident alien who does not have an SSN, ITIN or EIN, the agency should first perform a name search on the Payee Name Search (PAYNAM) screen to check if another agency has already set up the payee in TINS. If no record is found, contact Payment Services to obtain an 11-digit temporary number that is prefixed with a “3” (for example: 31XXXXXXXXX).
- Not request 3 TINs that are intended for use only within the agencies’ internal systems. Comptroller-assigned 3 TINs will only be provided to agencies if payment transactions are to be processed through the Uniform Statewide Accounting System (USAS) using the assigned 11-digit 3 TINs. The Comptroller’s statewide payroll systems do not use 3 temporary TINs to process state employee payroll payments.
- Set up in TINS the 3 TINs provided by Payment Services and without alterations to the 11-digit 3 TINs. Payment Services monitors the assigned 11-digit 3 TINs to ensure they have been set up. See Foreign Payees.
- Not set up TINs prefixed with a 3 or issue payments to 3 TINs if they have not been provided by Payment Services. This ensures that payments do not bypass the warrant hold statutes or requirements for 1099 reporting to the IRS.
- Not issue payments to a 3 TIN that is defined as a Comptroller Taxpayer Number (TP number)
- Not set up hold records on a 3 TIN that is defined as a Comptroller taxpayer number. Payment Services will delete an agency’s hold records that are set up using a Comptroller taxpayer number.
If your agency makes multiple or recurring payments for goods and services to a foreign payee, the foreign payee should apply for an SSN, ITIN or EIN when appropriate. Some countries have a treaty with the United States stating which entities do not have to have an EIN in order to do business within the United States. To determine if a foreign business needs an EIN, contact the IRS business assistance office at (800) 829-4933.
If the foreign payee was initially set up with a Comptroller-assigned 3 TIN and then receives an SSN, ITIN or EIN:
- Do not process a new payee setup with their SSN, ITIN or EIN.
- Submit a Payee Change Request form (74-157) to request a number change from the Comptroller-assigned 3 TIN to the SSN-, ITIN- or EIN-based number. A payee must not be set up in TINS with multiple TINs; a number change ensures compliance with this policy.
Comptroller Taxpayer Number
A Comptroller taxpayer number begins with:
- 1XXXXXXXXXX that is based on the taxpayer’s EIN. Mail codes prefixed with a T (TXX) on the “1” EIN-based numbers are restricted for Comptroller tax-related payments.
Agencies may not:
- Issue payments to the 3 taxpayer numbers. Agencies may issue payments to the 1 EIN-based numbers but may not use the T mail codes that are set up on the 1 EIN-based numbers.
- Set up payees with a 3 taxpayer number or set up new mail codes on a 3 taxpayer number.
- Make updates to 3 taxpayer numbers or T mail codes, even if the T mail code is on the 1 EIN-based TIN.
- Set up debtor hold records using a 3 taxpayer number. Payment Services will delete an agency’s hold records that are set up on a Comptroller taxpayer number.
These actions are monitored by Payment Services, and violations will result in:
- Inactivation of the 3 TIN that is defined as a Comptroller taxpayer number and its mail codes if set up by an agency.
- Deletion of hold records on a 3 TIN that is defined as a Comptroller taxpayer number.
If a payment transaction was entered into USAS before the mail code and/or TIN is inactivated, USAS will allow an inactive mail code / TIN to be paid. However, the agency must process an Expenditure Transfer Voucher (ETV) to transfer the expenditure from the TP Number to the payee’s SSN-, ITIN- or EIN-based TIN. If the SSN-, ITIN- or EIN-based TIN is not set up in TINS, the agency must establish the TIN before processing the ETV. This ensures:
- The agency records 1099-reportable payments with the proper identification number required by the IRS
- The agency’s compliance with this policy
Agency Repeater Numbers
Agency repeater numbers are used for interagency transfer voucher (ITV) transactions that typically do not issue payments, as well as reimbursements payments via USAS. They begin with 3, followed by the agency number repeated three times, and ending with a check digit. For example, the repeater number for agency 200 is 32002002007.
If you are responsible for handling ITVs for your agency and need assistance with this process, see USAS Interagency Transactions Web-based Training.
Agencies are responsible for setting up their own agency repeater number, mail codes and direct deposit information in TINS. To prevent changes to your mail codes by other agencies, set the Security Level to 1 on each mail code. Agencies must not:
- Process updates to another agency’s repeater number or its mail codes
- Set up new mail codes on another agency’s repeater number
- Set up, update or cancel direct deposit information on another agency’s repeater number mail codes. By setting up direct deposit on your agency’s mail codes, your agency becomes the custodial agency for the direct deposit information, which prevents other agencies from updating or deleting your agency’s direct deposit records.