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FED ERAL RE SE R V E BANK O F NEW YORK Fiscal Agent of the United States r Circular No. 3 9 9 4 1 L July 6,1953 J D EPO SIT OF FED ERAL EXCISE TA X E S W IT H D E P O SIT A R Y BANKS To All Banks and Trust Companies in the Second Federal Reserve D istrict: B y the issuance o f T reasury D ecision No. 6025 on J u ly 3, 1953, the T reasury D epart ment has revised its m ethod o f collecting certain F ederal E xcise taxes to provide fo r the filing o f excise tax returns quarterly instead o f monthly. U nder the new method, which w ill ap p ly to taxes accruing on and a fter J u ly 1, 1953, it w ill be m andatory f o r taxpayers liable fo r paym ent o f the excise taxes to make m onthly deposits with a F ederal Reserve Bank o r com m ercial bank depositary fo r each o f the first two months o f a quarter i f their total excise tax liability fo r each o f the months is m ore than $100; fo r the third month o f the quarter, taxpayers having a liability o f m ore than $100 w ould at their option make deposits with a com m ercial bank depositary or F ederal R eserve Bank, o r remit directly to the appropriate D irector o f Internal Revenue. D eposits, and the remittance, i f any, are required to be made within the m onth follow in g the month in which the tax liability accrued. The T reasury estimates 85,000 taxpayers have m onthly excise tax liabilities o f m ore than $100. The T reasury has also revised the provisions o f T reasury D epartm ent Circular N o. 848 (R ev ised) to allow qualified depositaries to accept paym ents o f certain excise taxes, and to prescribe a new form , F orm No. 537, entitled “ D epositary R eceipt fo r F ederal E xcise T a x es.” D epositaries already qualified under T reasury Departm ent Circular No. 848 w ill not be required to requalify in order to accept deposits o f Federal E xcise taxes. N o change is being made in T reasury D epartm ent Circular No. 92, since depositaries qualified under that circular, as amended, are already authorized to credit deposits o f F ederal E xcise taxes in their T reasury T ax and L oan A ccounts (under p ro visions o f the introductory paragraph contained in the Second Amendment, dated F ebru ary 12, 1951). D irectors o f Internal Revenue have notified payers o f excise taxes o f the changed p ro cedure, and have sent the taxpayers the initial D epositary R eceipt fo r F ederal E xcise Taxes (F o rm No. 537), inscribed with the name, address, and identification number o f the taxpayer. The com m ercial bank depositary w ill accept the deposits o f F ederal E xcise taxes and process F orm N o. 537, which w ill accom pany the deposit, together w ith any F orm s Nos. 450 and 515 coverin g deposits o f S ocial S ecurity and W ithheld Incom e taxes, and o f R ailroad Retirem ent taxes, respectively, and forw a rd all o f them under cover o f a single transmittal to the F ederal R eserve Bank. E ach depositary receipt forw a rded to this Bank w ill be validated and returned directly to the taxpayer together with a blank receipt form fo r use b y the taxpayer in making his next deposit. The taxpayer w ill file the validated receipts and the quarterly return w ith the D irector o f Internal Revenue. Copies o f T reasury D epartm ent Circular No. 848, and o f our O perating Circular N o. 18, revised to include the p rovision s coverin g F ederal E xcise taxes, will be sent to you in the latter pa rt o f July. A dditional copies o f this circular w ill be furnished upon request. A llan S proul, P resident.