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ACR 31166 – TINS System Change
May 11, 2012

Introduction

ACR 31166 created two new mail code indicators for UNMASK TIN and HOLD BYPASS in the Texas Identification Number System (TINS) effective May 11, 2012.

Issue 1 — Unmask TIN

ACR 29965 changed the warrant print program to mask Social Security numbers (SSNs) on warrants and warrant stubs for Texas Identification Numbers (TINs) prefixed with a 2 or SSN-based TINs (2xxxxx12345). This included mail codes payable to Internal Revenue Service (IRS) even when levy orders may require the SSN be printed or written on the warrant.

Solution 1 — Unmask TIN

ACR 31166 created the UNMASK TIN field. Agencies will be able to set the UNMASK TIN indicator on a payee’s mail code payable to the IRS for a tax levy online via the Payee Master Level Setup (PMSTUP) and Payee Mail Code Change (PCHGMC) screens. Batch updates will not be available.

Once the UNMASK TIN indicator has been updated, it will be displayed on the Payee Mail Code Information (PYADDR) screen for the mail code with a value of Y. This will ensure the full SSN-based TIN is printed on the warrant for compliance with the IRS tax levy order.

If you make a change to the mail code’s payee name, address or phone number or if a number change or merge is processed with that mail code, the system will automatically delete the indicator. If the IRS tax levy still applies, you need to re-establish the indicator.

Once the IRS tax levy obligation has been satisfied, update the mail code by inactivating the mail code or deleting the indicator. Deleting the indicator will ensure that masking on the warrant will occur for the SSN embedded in a TIN prefixed by a 2.

Note: The paying agency must promptly update this field to comply with the Comptroller’s Confidential Data Prohibition policy included in Texas Identification Number System Guide (FPP P.003).

The Payee Maintenance History (PMTHIS) screen will display the following records when adding or deleting this field:

Issue 2 — Hold Bypass for Vendors

State agencies and institutions of higher education often pay vendors who are either in a federal bankruptcy status or whose payments have been levied by the IRS. In such cases, new mail codes are set up for those payees that are payable to either a federal bankruptcy court or the IRS.

When a payee has a debt to the state (referred to as warrant hold), all mail codes for that payee will result in payments being held. Federal bankruptcy laws and IRS tax levies have the force of law and take precedence over state debts; therefore, payments to these entities should not be held or offset against state debts.

Solution 2 — Hold Bypass for Vendors

ACR 31166 also created the HOLD BYPASS field. The HOLD BYPASS indicator can be set in TINS on a vendor’s mail code payable to a federal bankruptcy court or the IRS for tax levies. Agencies will not be able to update this field via online or batch. When applicable for vendors, please submit a Payee Change Request form (74-157) (login required)PDF to Fiscal Management to request a HOLD BYPASS indicator value of 2 for a bankruptcy or IRS tax levy. The Uniform Statewide Accounting System will use the HOLD BYPASS indicator to ensure that payments to that mail code are not held and warrant hold notices are not generated.

If an agency makes a change to the mail code’s payee name, address or phone number, or if a number change or merge is processed with that mail code, the system will automatically delete the indicator. If the bankruptcy or IRS tax levy still applies, you need to submit a new PCR form to re-establish the indicator.

When the paying state agency is no longer required to make payments to a bankruptcy court or the payee’s IRS tax levy has been satisfied, you need to submit a PCR form to have the mail code inactivated or the indicator deleted.

Note: The paying agency needs to submit a PCR form for the payee mail codes meeting these criteria. Payments must be distributed promptly to the IRS or bankruptcy court without being held, and TINS must be updated when the IRS or bankruptcy court debt is satisfied.

The PYADDR screen will display the following values, if applicable:

The PMTHIS screen will display the following records when adding or deleting this field:

See the Hold Procedures for details on IRS Tax Levy or Federal Bankruptcy Court Orders.

Screens Affected

Reports Affected

The new TINS Hold Bypass Indicator by Agency – Monthly Report is available via remote print. The report will allow you to track when the indicator has been set or deleted for your agency’s mail codes so you can ensure the indicator value is correct.