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FEDERAL RESER VE BANK OF NEW YORK Fiscal Agent of the United States /■Circular No. 4 2 8 9 1 L December 5, 1955 J DATING OF DEPOSITARY RECEIPTS BY DEPOSITARIES FOR FEDERAL TAXES To A ll Incorporated Banks and Trust Companies in the Second Federal R eserve D istrict Qualified as D epositaries f o r Federal T a x es: On the reverse o f this circular is a cop y o f a communication that the T reasury D epartm ent has asked us to transm it to you. The com munication stresses the requirem ent that D epositaries fo r F ederal Taxes indicate on the reverse side o f each depositary receipt the date on which the deposit was actually received, because any later dating m ay subject the depositor to the penalties provided in the Internal Revenue Code fo r the m aking o f untimely deposits. A dditional copies o f this circular w ill be furnished upon request. A ll a n S prou l, P resident. ( over) T R E A S U R Y D E P A R T M E N T F I S C A L S E R V IC E W A S H IN G T O N November 30, 1955 T o all incorporated banTcs and trust com panies qualified as D epositaries f o r Federal Taxes, pursuant to Treasury D epartm ent Circular N o. 848 (R e v ised ), dated June 25, 1951, as amended. S : Endorsing and dating o f depositary receipts on the u b je c t reverse thereof by Depositaries for Federal Taxes. Treasury Department Circular No. 848 (Revised), dated June 25, 1951, as amended, provides in Section 6 — Procedure to be Followed by Depositaries for Federal Taxes, Sub-section (C ), that “ Deposi taries will endorse each depositary receipt in the space provided on the reverse thereof, indicating the name of the depositary and the date on which the tax deposit was received by the depositary. ’ ’ District Directors of Internal Revenue examine all depositary receipts to ascertain if taxpayers are complying with regula tions governing tax deposits, and the timeliness of deposits made with Depositaries for Federal Taxes is determined by the date contained in the endorsement on the reverse of the depositary receipt. Section 6656 o f the Internal Revenue Code of 1954 provides for imposition of penalties on any person required to make deposits o f taxes if such tax deposits are not made on or before the date prescribed there for. Application o f this penalty provision has resulted in a considerable number o f complaints from tax payers who allege that their deposits were made with the depositary prior to the date shown in the deposi tary’s endorsement on the reverse o f the depositary receipt. The Treasury Department wishes to emphasize the importance of the date in the endorsement on the reverse o f depositary receipts, in view o f the penalty provision o f Section 6656 of the Internal Revenue Code of 1954. The requirement is mandatory that Depositaries for Federal Taxes, and branches of such depositary banks, indicate the date that tax deposits are actually received, regardless of whether the depositaries are able to credit their Treasury Tax and Loan accounts or otherwise function the depositary receipts, and transmit them to the Federal Reserve Bank or Branch on the same date. W . T. H e f f e l f in g e r Fiscal Assistant Secretary.
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