Lesson 1: Payee Forms and Preliminary Research

Forms

The Comptroller’s office makes a variety of forms available to help agencies gather the information necessary to set up a payee in TINS. Comptroller forms are not available to the public. Agency staff must have security access to log in and download these forms before they can be made available to payees.

Agencies may create their own internal payee application form which does not require Comptroller review or approval before it is used. Agencies that create their own form should use the Comptroller’s form to ensure it includes the information required for the payee setup.

Form AP-152

The Comptroller’s form is the Application for Texas Identification Number (form AP-152), referred to as AP-152. If an agency decides to use the Comptroller’s AP-152, the agency must provide its payees the most current version of the form from the Comptroller’s Fiscal Management website. Whether the agency uses AP-152 or its own internal form, it is the agency’s responsibility to help its payees complete the form. Ensure payees receive your agency’s contact phone number and/or email for questions and instructions for returning the completed form to your agency.

At a minimum, this information is required:

• Payee identification number
• Payee name and mailing address
• Ownership type
• Payee signature and date

The following fields may not apply to all payees but must be included on the agency’s internal form:

• TEXAS TAXPAYER NUMBER
• Assignment fields, Section 4 on AP-152

The following fields should not be required by the payee; the agency must determine the appropriate values for these fields:

• SIC CODE: For the list of codes, see SIC Codes.
• SECURITY TYPE CODE: See the SECURITY TYPE field description on the PYADDR screen.
• ZONE CODE: For the list of codes, see Zone Codes. TINS automatically sets the zone code for U.S. states and American territories.

Social Security Number (SSN) Requirement

When the SSN is required but the payees refuse to provide their SSNs, refer them to the instructions on the back of AP-152 under General Instructions. This section lists the state and federal laws and attorney general opinion that authorize the state to require payees’ SSNs. A payee’s refusal to provide their SSN authorizes an agency to refuse to set up the payee in TINS and delays payment to that payee.

If an individual, sole owner or a partnership’s individual partner does not qualify for an SSN, they must provide their Individual Taxpayer Identification Number (ITIN) issued by the Internal Revenue Service (IRS).

Ownership Codes

Section 3 on AP-152 has additional fields the payee must complete based on the selected ownership code:

• S=Sole ownership
  • OWNER’S NAME
  • SSN/ITIN
• P=Partnership: Requires the following fields for two partners of the partnership:
  • NAME of Partner 1
  • SSN/ITIN/EIN of Partner 1
  • NAME of Partner 2
  • SSN/ITIN/EIN of Partner 2
• The following four ownership codes require a Texas File Number:
  • L=Texas Limited Partnership
  • T=Texas Corporation
  • A=Professional Association
  • C=Professional Corporation

The Texas File Number is issued to business entities by the Secretary of State (SOS) when the entity is organized or registered with the SOS. The file number is also referred to as a “charter number” and appears in TINS with the field name TEXAS CHARTER NUMBER but appears on MTSUMM with the field name SOS FILE NUMBER.

Payment Assignment

Section 4 on AP-152 includes the question “Payment Assignment?” with YES and NO checkboxes. Payees should only provide assignment information if they intend to assign their state payments to a third party such as a creditor, collection agency, etc. If the payee selects YES, the following fields are required:

• ASSIGNEE NAME
• ASSIGNEE TIN
• ASSIGNMENT DATE

The payee must also provide the agency with a copy of the assignment agreement with the third party. Agencies are advised to submit both the application form and the assignment agreement to their legal staff to determine if the assignment request will be approved before processing the payee setup.

• If the agency denies the assignment request, proceed with the payee setup. Notify the payee that the assignment request was not approved and payments will be made directly to the payee.
• If the agency approves the assignment request, proceed with the payee setup. Further instructions are included in the lesson on mail code setups.

Unsigned or Incomplete Forms

Application forms must be signed, complete and legible. If a form is unsigned, return it to the payee for signature. If it is incomplete or unreadable, contact the payee for clarification or request the form be resubmitted. Do not guess or make assumptions.

Next: Preliminary Research