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IAT and TINS IAT Indicator Tutorial

Authorization Forms

A payee cannot be set up for direct deposit payments without a signed and completed direct deposit authorization form. This authorization form must be either the Comptroller’s Direct Deposit Authorization form (74-176) or the agency’s own internal Comptroller-approved form. The Comptroller’s form requires the completion of the International Payments Verification section. This section asks the payee to indicate if their payments will be forwarded to a financial institution outside of the United States. The Comptroller requires the same IAT question on an agency’s form before it is approved.

If the payee answers YES to this question, agencies must NOT set up the direct deposit instructions in TINS. The payee must complete an additional form – ACH (Direct Deposit) Payment Destination Confirmation form (74-227). Agencies are responsible for providing the form to their payees.

If the payee checks… Then…
Box (a) indicating that 100 percent of the state payments WILL be forwarded outside of the United States, Direct deposit cannot be set up for this payee. The agency should set the IAT Indicator on the payee’s master record and retain all forms for audit purposes.

Either box (b) or (c).

  • Box (b) - less than 100 percent of the state payments WILL be forwarded to a country outside of the United States.
  • Box (c) - the state payments WILL NOT be forwarded to a country outside the United States.
 There is no need to set the IAT Indicator, and the payee may be set up for direct deposit payments. Retain all forms 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.

According to 34 Texas Administrative Code Section 5.13(b)(1)(H), 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: Add/Delete the IAT IND