It needs to be wired if it is desirable to override how the GTX will automatically select TIS operation. I think it is typically wired in 430/530 installations. If you do not wire it, chances are that the pilot will be annoyed that he cannot make the 430/530 report "TIS standby" instead of "TIS unavailable". I do not believe it is an absolute requirement. You are free to make the choice not to wire it.