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Glenn Hegar  ·  Texas Comptroller of Public Accounts

IAT and TINS IAT Indicator Tutorial

Authorization Forms

Direct deposit cannot be set up for a payee without a signed, complete Direct Deposit Authorization form (74-176). The Comptroller’s office provides these direct deposit authorization forms in which completion of the International Payments Verification section is mandatory. This section asks the payee to indicate if their payments will be forwarded to a financial institution outside of the U.S.

If the payee answers YES in this section, agencies must NOT set up the direct deposit instructions in TINS. The form instructs the payee to complete an additional form — ACH (Direct Deposit) Payment Destination Confirmation form (74-227). If the payee does not submit this additional form, agencies are responsible for providing it to the payee for completion.

If the payee checks box A on the confirmation form (100 percent of the payment WILL be forwarded outside of the U.S.), direct deposit cannot be set up for this payee. The agency should set the IAT Indicator in TINS to Y and retain all forms for audit purposes.

If the payee checks box B or C on the confirmation form (Less than 100 percent of the payment WILL be forwarded to a country outside of the U.S. or the payment WILL NOT be forwarded), then direct deposit can be set up. There is no need to set the IAT Indicator, and all forms should be kept for audit purposes.

Forms Retention

Agencies must maintain copies of the most current direct deposit authorization form on file, as well as the ACH (Direct Deposit) Payment Destination Confirmation form (74-227), if completed.

Per 34 Texas Administrative Code, Section 5.13 (c)(6)(C), the custodial agency is required to maintain a copy of a payee’s current direct deposit authorization form. The agency may retain the original or a scanned equivalent copy of the signed authorization form. In accordance with NACHA rules, retention of forms is for a period of two years from the termination or revocation of the authorization.

Next: The IAT Indicator

Glenn Hegar
Texas Comptroller of Public Accounts
Questions? Contact statewide.accounting@cpa.texas.gov
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