Administrative Actions Unit is responsible for implementation, maintenance, and daily operation of "vendor hold", also known as "warrant hold" processing. Accounts examiners interact with the State Comptroller of Public Accounts to enforce Texas Government Code, Title 4, Section 403.055 which prohibits the Comptroller's office from issuing a state warrant (payment) to anyone who is indebted to, or has a tax liability with the State of Texas. Section 213.054 of the Texas Unemployment Compensation Act also provides for the vendor hold procedure.

A tape list of delinquent employer accounts is updated each night. The tape is transmitted to the Comptroller each Monday morning for processing to update the existing warrant hold file. Employer accounts are added, changed, and released. This can be accomplished manually online. Required information includes the Payee Hold Number which identifies the employer, Payee Hold Source (160), and Agency Number (320).

• Include Liable, Active or Inactive Status
  
  
• $100.00 minimum delinquency. Accounts will remain in vendor hold until the balance reduces below $100.00.
  
  
• Existing Tax lien
  
  
• Excludes Bankrupt Employers (no FID Record or "B" quarters)
  
  
• Excludes accounts with Stop 10, 14, 15, 21, 26, 85
  
  
• Excludes quarters in "certified," "pending," and "uncollectible" category

Accounts included in Vendor Hold will show an entry on the delinquency action history screen noting date of hold and amount included. State Office and Field Tax Examiners who receive employer inquiries may refer callers needing vendor hold assistance to Administrative Actions Unit. All such inquiries and any action taken should be documented on the comment screens.

Employer accounts may be released from vendor hold by placing one of the above mentioned Stops prior to the nightly run or online by accessing the comptroller system.

The Comptroller, prior to the issuance of a state warrant, will screen any delinquent employer account in vendor hold. Employers, who are in line to receive a state warrant, are identified and will receive a "Warrant Held" letter from the Comptroller informing them of the held warrant, the delinquent tax liability, the hold Agency, and instructions to contact the Agency. Many employers contact the RID Collection Section or the local Tax Office when they receive the "Warrant Held" letter. Should employers call without the knowledge of the proper TWC account number, the payee number is encrypted federal identification number or social security number with either a 1, 2 or 3 preceding the number. If the payee number begins with 1 it is the Federal Identification Number.  If the payee number begins with a 2 it is a social security number.  Delete the first and last digit of the payee number to key in the tax system to locate the account. Thirty days from the date of the Warrant Held Letter, the State Comptroller may transfer the amount of our Vendor Hold or the amount of the State Warrant, whichever is appropriate, to Texas Workforce Commission's USAS account. RID Collection Section AAU personnel will coordinate with our Revenue and Trust Management Department to insure that the State Warrant applies to the employer's account. Warrants post to the cash journal as VCH-voucher or OF-official check.

When employer's call seeking release of the held warrant, conduct computer search to identify employer and verify all amounts due. Advise employer of options available. TWC will require payment of all delinquent items including submission of past-due reports along with tax, interest, and penalty.

• An employer may submit full payment via cashier's check or US Postal Service money order. When payment is received, either the field examiner or an AAU examiner must place a payment received stop on the account with a release date long enough for the payment to post to the account. The vendor hold will automatically release in 48 hours on the State Comptroller system. Place appropriate comments.
  
  
• Within the first 30 days of receipt of the Warrant Held letter from the State Comptroller, the employer may choose to use the hold warrants to pay off the debt. The employer must execute a Voluntary Offset form with the Comptroller, which will authorize the Comptroller to offset the warrants to the TWC Revenue and Trust Management Department for credit to the employer account. AAU coordinates this process with Comptroller/ Revenue Accounting, to identify warrant number(s), warrant amount, and fund source number. Submit properly completed Warrant Release or Reinstatement Request to Comptroller. If warrant(s) are in excess of what is owed by the employer, the employer may choose to apply the overpayment to future contributions that may come due or request a refund.
  
  
• In certain cases, it may be appropriate to execute a Formal Installment Payment Agreement, Form C-104, with the employer wherein the held warrant(s) are used as the down-payment. If the employer executes the required agreement, the warrants will be credited to the account as described above. Appropriate comments must be entered and the Field Accounts Examiner may be asked to place and maintain a stop on the account in order to prevent additional Vendor Holds from attaching to subsequent warrants while the payment plan is in compliance. Should the employer fail to keep a payment plan, the stop will be released and all subsequent warrant hold payments will be held and applied to the account until paid. While this may be a hardship on employers it is an incentive for them to comply with the agreement. If the employer does not comply, TWC Tax and Labor Law will not lose its priority within the warrant hold program.
  
  
• When an employer requests an informal payment arrangement the employer must be told they can make monthly payments however it will not prevent a vendor hold and future state warrants will be held and applied to the delinquency.

AAU Supervisor: (512) 463-2766
Fax (512) 463-9125

State Comptroller
Revenue Accounting
6^th Floor LBJ Building
Warrant Held Section

Phone (512) 463-4561
FAX number - (512) 463-3605(Revenue Accounting); (512) 936-5970 (Claims Division)

The Texas Lottery Commission uses our Vendor Hold Tape to identify lottery winners or retailers who are delinquent to this Agency. The same stops that remove an account from vendor hold apply to lottery winnings or retailers who are delinquent.

The Lottery Commission informs the player that the winnings are on hold because a debt is owed to us. The Lottery Commission will verify with AAU that the balance is still owed. Upon verification, they will cut us a lottery check for the balance owed. In the event the lottery winnings are in excess of what is owed, the Lottery Commission will split the check accordingly between TWC and the Lottery winner.

When a retailer is delinquent to us, the Lottery Commission will verify the balance and transfer via USAS (Uniform Statewide Accounting System) their percentage based on winning tickets claimed until we are satisfied.

On winnings claimed prior to September 1, 1997, the winner/employer must sign a Limited Power of Attorney, which TWC provides, and then forwards to the Lottery Commission. By signing the power of attorney, the employer authorizes the Lottery Commission to release a check to TWC.

Lottery Commission contact telephone number is (512) 344-5185. All inquiries received should be directed to the AAU Supervisor or Assistant Supervisor.

Lottery Commission address:

Texas Lottery Commission
P O Box 16630
Austin, TX 78761-6630