TINS Online Entry Web-Based Training

Lesson 1: Payee Forms and Preliminary Research

Preliminary Research

An important first step before processing a payee setup is to research the information provided on the application form. The two inquiry screens recommended as part of your basic research are PYADDR and MTSUMM.

PYADDR

The Payee Mail Code Information (PYADDR) screen helps determine if the payee is already set up in TINS. Many payees receive payments from multiple state agencies and may already be set up. If the payee is already in TINS, agencies may still require their payees to submit a completed application form as documentation of the SSN, ITIN or EIN in case the payee’s payments are 1099 reportable.

If the payee is not set up in TINS, PYADDR displays one of the following messages at the bottom of the screen. Each message means a new payee setup is required:

MAIL CODES DO NOT EXIST
MASTER SETUP REQUIRED
TIN PURGED ON MM/DD/YYYY
MASTER RESERVED

PYADDR Screen

PYADDR.1XXXXXXXXX2                                                           MM/DD/YY
    PAYEE NUMBER: 1XXXXXXXXX2                               TAXPAYER NUMBER:
  OWNERSHIP TYPE: TEXAS CORPORATION                             IAT IND:
  ACTIVE     MC CNT: 1      1099 MC LOOKUP: PF12      NEXT AVAILABLE MC: 001

  MAIL CODE: 000    SIC CODE: 9999     SECURITY TYPE: 0         SECURING SOURCE:
   STATUS: A            ON HOLD                                 TELEPHONE:
  UNMASK TIN:               HOLD BYPASS: 
     NAME: JUNGLE FLOWER SHOP INC                         ADDRESS IND: S
  ADDRESS: 220 WESTHEIMER RD                                                        
     CITY: HOUSTON        STATE: TX      ZIPCODE: 77006 - 3293         ZONE CODE: 227


 END OF DISPLAY - PF1 = HELP, PF3 = QUIT, PF4 = MENU

Field Descriptions

PAYEE NUMBER

If the payee is in TINS, all mail codes display.

TAXPAYER NUMBER

If the business has a taxpayer number, it is displayed here.

OWNERSHIP TYPE

Must agree with the application form.

IAT IND

Will be Blank or Y. See the IAT and TINS IAT Indicator Tutorial on FMX.

TIN STATUS

Displays A=Active or I=Inactive. Must be A to process a payment.

MAIL CODE

Is a mail code on file with the name and address of the payee your agency needs to pay? If not, a new mail code may need to be set up.

SECURITY TYPE

Is the mail code you need to pay secured?

0=Not secured and can be paid and updated by any agency.
1=Secured and can be paid by any agency but can only be updated by the SECURING SOURCE agency.
2=Secured and cannot be viewed or paid except by the SECURING SOURCE agency.

STATUS

The mail code status must be A=Active to issue a payment. If the status is I=Inactive, payments cannot be issued to that mail code.

ON HOLD

The payee is on hold due to a state debt.

UNMASK TIN

If a Y=Yes is displayed, do not use the mail code unless the payment is to IRS for a tax levy against the payee to a bankruptcy or child support court.

HOLD BYPASS

If ON HOLD is displayed, does the payee have an IRS tax levy or bankruptcy or a child support garnishment? If so, agencies must submit a Payee Change Request form (74-157) to request the Comptroller’s office to set the hold bypass indicator.

NAME/ADDRESS/CITY/STATE/ZIPCODE

Does the address exactly match what the payee requested on the application form?

MTSUMM

The Multi-Tax Summary (MTSUMM) screen can help determine if the payee is also a Comptroller taxpayer. If the payee is a taxpayer, MTSUMM can help verify the ownership type to be entered in TINS. Ensure the information provided on the application form agrees with the taxpayer information on MTSUMM. Conflicting information may result in the inactivation of the TIN and mail code after the payee setup.

The file number appears in TINS with the field name TEXAS CHARTER NUMBER, but appears on MTSUMM with the field name SOS FILE NUMBER. When you research the SOS file number on MTSUMM, it must match the Texas charter number provided on the payee’s application form.

On the MTSUMM screen (copied below), you can hover over fields for their descriptions.

MTSUMM Screen

MTSUMM.1XXXXXXXXX2.                                                           MM/DD/YY
    JUNGLE FLOWER SHOP INC                                                     PAGE 1  
 220 WESTHEIMER RD                                                   COUNTY CODE: 101  
 HOUSTON TX 77006 - 3293                                         CT TEXAS PROFIT CORP  
 SECONDARY ADDR: NO              FIELD OFFICE: 2H30              PHONE: (713)528-4105  
 SERV ADDR:                                                                       ORD  
 PAYEE STATUS:                                                                  
                                                                                
 FRANCHISE (13)                                AUDIT            :NO AUDIT           
   SOS FILE NUMBER:0028279100                  LAST REPORT FILED:98                 
   SOS FILE DATE  :10/13/1970                                                    
   SOS STATUS     :FORF FRAN TAX               RESP BEGIN DATE  :10/13/1970         
   SOS STATUS DATE:08/27/1996                  RESP END DATE    :08/27/1996         
                                                                                
   RIGHT TO TRANSACT BUSINESS: FORFEITED                                        
 SALES TAX (26)                                AUDIT: NO AUDIT                       
   STATUS: OOB AS OF 12/31/2003                LAST REPORT FILED: 0312               
   FILER TYPE: MONTHLY                         MGMT HALT STATUS: NO MGMT HALT        
   OPEN COLL RCD:    0                         LOCATIONS: 0 ACTIVE / 1 INACTIVE      
   OPEN NON-COMP:    0                                                          
   NBR RETURN CK:    0                                                          
 Enter- PF1---PF2---PF3---PF4---PF5---PF6---PF7---PF8---PF9---PF10---PF11---PF12---
                                                                               HELP

Field Descriptions

Note: The NAME and OWNERSHIP TYPE fields are not identified with field names on this screen.

NAME: Compare name to the application.
OWNERSHIP TYPE: Must agree with the application and TINS if already on file.
SOS FILE NUMBER: Compare to the application if the ownership type is a Texas Limited Partnership, Texas Corporation, Professional Association or Professional Corporation.

Research Checklist

Here are some basic questions to ask yourself before processing the payee setup. These questions and the “if … then” actions should serve as your checklist:

When you inquire on PYADDR, does the payee already exist?
When you inquire on MTSUMM, does the payee have a tax record?
Does the information on MTSUMM agree with the information on the application form?

If …	Then …
The payee is already in TINS and the address on an existing mail code agrees with the application form	The agency may process payments to that mail code if the mail code status is A=ACTIVE
The payee is already in TINS but none of the mail code addresses agrees with the application form	Add a new mail code for the address on the application form
The payee is not set up in TINS	Add the payee as a new setup
The information on the application form and the information on MTSUMM do NOT agree	Seek clarification from the payee on the discrepancies before proceeding to avoid corrections to TINS or the tax system potential inactivation of your new setup

Next: Learning Check