TINS Online Entry Web-Based Training
Lesson 3: Foreign Payees
A TIN for a Foreign Payee
State agencies occasionally need to make payments to businesses located outside the U.S. or foreign individuals who reside in the U.S. Some foreign payees may have an SSN, ITIN or EIN while others may not.
- Agencies should ask a foreign vendor if the IRS requires it to have an EIN to do business in the U.S. Some foreign countries have treaties with the U.S. that determine whether EINs are required, so some foreign vendors may have been issued an EIN.
- A foreign individual who has not been assigned an SSN or does not qualify for an SSN may have an ITIN if the individual is required to file a federal tax return with the IRS. If the foreign individual has been assigned an ITIN, use it to set up the payee.
Comptroller-Assigned 3 TIN
Foreign payees who do not have an SSN, ITIN or EIN may be issued a Comptroller-assigned TIN by Payment Services. Before requesting a Comptroller-assigned 3 TIN, agencies must perform a name search on the Payee Name Search (PAYNAM) screen to see if the payee is already set up in TINS.
If the payee has not been set up, contact Payment Services to request a 3 TIN by following the instructions in Comptroller-Assigned 3 TINs.
When agencies receive the requested Comptroller-assigned 3 TIN, the 11-digit 3 TIN must be set up in TINS exactly as received. It must not be altered in any way. Noncompliance with the 3 TIN policies and procedures will result in an audit finding, inactivation of the altered 3 TINs and potential denial of future 3 TIN requests.
Comptroller-assigned 3 TINs are intended to be temporary in order to process payments in a timely way. If the foreign payee is issued an SSN, ITIN or EIN after the payment has been issued, the SSN, ITIN or EIN must be provided to the agency. Do not process a new payee setup with the SSN, ITIN or EIN. Submit a number change request to Payment Services to transfer payment history from the 3 TIN to the SSN-, ITIN- or EIN-based TIN.