IAT and TINS IAT Indicator Tutorial

Using the IAT Indicator

If a payee submits a Direct Deposit Authorization form (74-176) to an agency and has selected YES in the International Payments Verification section, the payee must submit the ACH (Direct Deposit) Payment Destination Confirmation form (74-227). If the payee does not submit form 74-227, one should be provided to the payee by the agency.

Direct deposit should not be set up until form 74-227 has been completed by the payee and reviewed by the agency.

Once the ACH (Direct Deposit) Payment Destination Confirmation form (74-227) has been received and reviewed by an agency, the following actions can be taken based on the payee’s answer on this form:

If the payee has confirmed payments will not be forwarded outside of the U.S.:

• Direct deposit setup can proceed for these banking instructions.
• Retain all forms for your records.

If the payee has confirmed payments will be forwarded outside of the U.S.:

• Direct deposit instructions should NOT be set up.
• The agency should set the IAT IND field in TINS to Y to flag this TIN for other agencies to be aware of the potential of IAT payments (see Setting the IAT IND).
• The agency should retain both forms — 74-176 and 74-227 — for their records and communicate to the payee that the agency cannot make payments to them by direct deposit.

Note: If direct deposit instructions are already in place for this account information, the ACH (Direct Deposit) Payment Destination Confirmation form (74-227) should be forwarded to the custodial agency for action so they can contact their vendor to determine if that mail code's payments may be affected. The custodial agency should cancel the direct deposit instructions and set the IAT IND to Y.

Next: Setting the IAT IND