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Dallas, Texas, July 9, 1943


To All Insured Banks in the
Eleventh Federal Reserve District:

In connection with the Current Tax Payment Act of 1943, we are enclosing the following cir­
culars and forms prepared by the Treasury Department:
Treasury Department Circular No. 714, Regulations Governing the Payment
Through Depositary Banks of Funds Withheld as Taxes.
Treasury Department Application-Agreement, Form No. 411.
Treasury Department Resolution Authorizing Execution of Application-Agree­
ment, Form No. 411-A.
Treasury Department Circular No. 660, First Supplement.
Treasury Circular No. 714 contains the official regulations pertaining to (a) qualification of
banks as special depositaries to receive from employers funds representing taxes withheld from
the salaries or wages of employees, (b) accounting for such deposits, and (c) method of compen­
sating depositaries.
All banks insured by the Federal Deposit Insurance Corporation are eligible to qualify as depos­
itaries, and those banks desiring to qualify should execute Application-Agreement, Form 411. This
must be authorized by a resolution of the board of directors of the applying bank and a certified
copy of the resolution on Form 411-A must accompany the application. Each bank should follow
the regular procedure wherever practicable, but in order to avoid any undue delay in qualifying
the Treasury Department has authorized this bank or branch to accept Application-Agreement,
Form 411, executed by an officer of the bank specifically authorized to execute such agreement by
a duly authorized committee of the board of directors, or an Application-Agreement executed by an
officer of the bank who has general authority to act on behalf of the bank. Such officer should in
each case be of the class indicated in Form 411-A. All such agreements accepted without a sup­
porting board resolution must be ratified by the board of directors at its next meeting, and a copy
of the ratifying resolution (Form 411-A with appropriate modifications) must be sent to this bank
or branch immediately, and in any event, not later than ten days after such meeting. Forms exe­
cuted by banks served by our branches at El Paso, Houston, and San Antonio should be returned
to the branch in whose territory the depositary bank is located. Upon receipt of the forms, properly
executed, this bank will promptly issue a Certificate of Qualification authorizing the depositary to
perform functions outlined in Treasury Department Circular No. 714.
Funds received from employers representing withheld taxes must be deposited in a special
account as authorized in the Treasury Department’s circular. Deposits in the account may be
accumulated until a balance of $5,000 is reached, at which time the depositary must remit the
entire balance to this bank or branch not later than the following business day, but not more fre­
quently than once each day, for credit to the account of the Treasurer of the United States. The
entire balance in the special account on the last business day in each month, regardless of the size
of the balance, must be remitted to this bank or branch not later than the following business day.

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Depositary receipts (Treasury Department Form No. 410) must be issued to employers making
the deposits. The original of the Treasury Department’s receipt must be delivered to the employer.
Each remittance to this bank or branch must be accompanied by the first copy of the depositary
receipt, and the second copy should be retained by the depositary bank. All remittances must be
in immediately available funds and depositaries will not be required to accept from employers as
payment of withheld taxes funds which are not immediately available to the depositaries at the
time of such payment. The depositary receipt, Form No. 410, will be distributed by this bank and
its branches as soon as a supply has been received from the Treasury Department. An estimate of
the number of such receipts needed for a three-month period should be furnished this bank or
branch by each depositary bank when Forms 411 and 411-A are executed.
The Treasury Department circular provides that no type of Government securities, including
Tax Savings Notes, shall be accepted by depositaries from employers for credit in the special
For the purpose of offsetting expenses incurred by depositaries, qualified banks will be per­
mitted to purchase 2% Depositary Bonds issued pursuant to Treasury Department Circular No.
660, First Supplement. A duly qualified depositary may make application through this bank to
purchase the bonds, either with its own funds or with funds which the Treasury Department may
deposit with the depositary bank upon application. The amount of bonds a depositary may purchase
will depend upon the monthly average amount of remittances made to this bank or branch and
the monthly average number of receipts issued to employers. The amount of the initial purchase of
Depositary Bonds will be calculated on the basis of the business transacted under the terms of
the circular during the first full calendar month following the date of qualification. Adjustments
in the amount of bonds purchased will be made at the close of the first three-month period of
operation after the initial purchase is made, and thereafter appropriate adjustments will be made
at the close of each six-month period ending June 30 and December 31. Tables showing the amount
of bonds that may be purchased are incorporated in Circular No. 714. The Depositary Bonds pur­
chased will be registered in the name of the Federal Reserve Bank of Dallas as Fiscal Agent of the
United States in trust for the depositary bank, and will be held by the Federal Reserve Bank of
Dallas as Fiscal Agent in safekeeping as long as the depositary bank is qualified to receive deposits
of withheld taxes.
The Secretary of the Treasury reserves the right to terminate the qualification of any depos­
itary at any time, and the depositary may terminate its qualification upon thirty days’ notice. Upon
such termination the amount of 2% Depositary Bonds held for the account of a depositary bank
will be redeemed on not less than thirty days’ nor more than sixty days’ notice by the Secretary of
the Treasury.
If further information is desired, please communicate promptly with this bank or the branch
in whose territory your bank is located.

Y o o n very truly,

Federal Reserve Bank of St. Louis, One Federal Reserve Bank Plaza, St. Louis, MO 63102