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Glenn Hegar  ·  Texas Comptroller of Public Accounts

Setup Special Circumstances
Foreign Payees

Some agencies may need to make payments to businesses outside the United States or to foreign individuals who reside in the U.S. Foreign payees are set up on Payee Master Level Setup (PMSTUP) and Payee Mail Code Setup (PMCTUP) the same as other payees, with a few key differences.

Foreign Payee TINs

  • Some foreign payees may have an SSN, EIN or ITIN while others may not.

    Note: Agencies should ask a foreign business if the IRS requires them to have an EIN to do business in the U.S. Some foreign countries have treaties with the U.S. that determine whether EINs are required.

  • If the payee has not been issued an SSN, EIN or ITIN, a Comptroller-assigned number may be requested as the TIN.
    • Search using Payee Name Search (PAYNAM) screen to see if another agency has already set up the foreign payee under a Comptroller-assigned TIN.
    • If not, contact Payment Services at (512) 936-8138 to request a Comptroller-assigned TIN.
  • If a payee is set up with a Comptroller-assigned TIN and later issued an SSN, ITIN or EIN, submit a Payee Change Request form (74-157) (login required) PDF to Payment Services for a number change.

    Note: Do not process the SSN, ITIN or EIN as a new payee setup

Foreign Payee Ownership Types

  • Foreign entities such as corporations or partnerships without an EIN should be set up with ownership type of R (Foreign Entity).
  • A sole owner business where the sole owner is a foreign payee who does not have an SSN or ITIN should also be set up with ownership type R (Foreign Entity).
  • Foreign individual payees who do not have an SSN or ITIN should be set up with ownership type I (Individual).
  • Foreign state employees who do not have an SSN or ITIN should be set up with ownership type E (Employee).

Screen Example (Foreign Payee PMSTUP – Step 1)

PMSTUP                                                                MM/DD/YY 
                                                                                
                 PAYEE MASTER LEVEL SETUP - STEP 1                              
                                                                                
 ENTER THE NUMBER PROVIDED BY PAYEE IN THE APPROPRIATE FIELD (ENTER ONLY ONE)   
                                                                                
      _________   SSN - SOCIAL SECURITY NUMBER (9 DIGITS)                       
                                                                                
      _________   EIN - EMPLOYER IDENTIFICATION NUMBER (9 DIGITS)               
                                                                                
      _________   ITIN - INDIVIDUAL TAXPAYER IDENTIFICATION NUMBER (9 DIGITS)   
                                                                                
      3XXXXXXXXX0 OTHER - COMPTROLLER-ASSIGNED (11 DIGITS)                      
                                                                                
 PRESS ENTER WHEN READY                                                         
                                                                                
                                                                                
                                                                                
                                                                                
                                                                                
                                                                                
                                                                                
  PF3=QUIT 
  

Screen Example (Foreign Payee PMSTUP – Step 2)

PMSTUP                                                                MM/DD/YY 
                       PAYEE MASTER LEVEL SETUP - STEP 2                        
 PAYEE NUMBER: 3XXXXXXXXX0                                                      
 INPUT SOURCE: XXX   OWNERSHIP TYPE: R    TAXPAYER NUMBER: ___________          
                                                                                
 SOLE OWNER'S NAME:                                      
  SSN: _________ ITIN: _________ (ENTER ONLY ONE)                               
                                                                                
 PARTNER 1 NAME: __________________________________________________             
  SSN: _________ EIN: _________ ITIN: _________ (ENTER ONLY ONE)                
 PARTNER 2 NAME: __________________________________________________             
  SSN: _________ EIN: _________ ITIN: _________ (ENTER ONLY ONE)                
                                                                                
 TEXAS CHARTER NUMBER: __________    IAT IND: _              TIN STATUS: A      
                                                                                
                                                                                
                                                                                
                                                                                
                                                                             
  PF3=QUIT                                                                      
  
  

Foreign Payee Mail Code Set Up

When setting up mail codes for foreign addresses, the CITY, STATE, and ZIP fields need to be entered differently:

Field Foreign Address Mail Code Entry

Note: For sole owners, enter the foreign sole owner’s name in the NAME field on PMCTUP. Enter the foreign sole owner’s business name in Line 1 of Lines 1–4 on PMCTUP.

City Country name
State

Two dashes (- -)

Note: This entry populates the ADDRESS IND field with F, which prevents TINS from attempting to validate a foreign address.

Zip Five zeros (00000)
Zone Code See Zone Codes for American and Foreign Territories for the three-digit code

Screen Example (PYADDR Foreign Address)

PYADDR.3XXXXXXXXXX.XX1                                              MM/DD/YY
      PAYEE NUMBER: 3XXXXXXXXX1               TAXPAYER NUMBER:          
    OWNERSHIP TYPE: FOREIGN ENTITY       IAT IND:                    
  ACTIVE            MC CNT: 1    1099 MC LOOKUP: PF12  NEXT AVAILABLE MC: 001
                                                                       
  MAIL CODE: 000  SIC CODE: 9999  SECURITY TYPE: 0  SECURING SOURCE:       
   STATUS: A                                        TELEPHONE:             
 
     NAME: FOREIGN BUSINESS NAME                              ADDRESS IND: F
  ADDRESS: MAILING ADDRESS                                                  
           CITY                                                             
  CITY: COUNTRY NAME         STATE: --  ZIPCODE: 00000       ZONE CODE: XXX 
                                                                                
                                                                                
                                                                                
                                                                                
                                                                                
                                                                                
                                                                                
                                                                                
                                                                                
                                                                                
                                                                                
 END OF DISPLAY - PF1=HELP, PF3=QUIT, PF4=MENU          
  
Glenn Hegar
Texas Comptroller of Public Accounts
Questions? Contact statewide.accounting@cpa.texas.gov
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