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FED ERAL R E SE R V E BAN K O F D A L LA S F IS C A L . A G E N T OF TH E U N IT E D STATES Dallas, Texas, July 23,1943 PROCEDURE RELATING TO WITHHELD TAXES To Qualified Depositaries for the Receipt of Withheld Taxes There is being transmitted' to you under separate cover, by registered mail, a supply of official depositary receipts (Treasury Department Form 410) which you are required to issue to employers evidencing payment to you of withheld taxes. The receipt (Form 410-Bx) enclosed with the ship ment specifying the serial number sequence of the receipts must be signed and returned promptly to this bank or appropriate branch. For the protection of all concerned, extreme care should be exercised in the custody of your stock of blank receipts. Depositaries will be responsible and accountable to the Federal Reserve Bank as Fiscal Agent of the United States for the proper custody and use of depositary receipts. As far as possible such stock, when not in use, should be kept in your vault or safe and a check-up should be made from day to day of the receipts in current use. In the-event any of the depositary receipts are lost or destroyed while in your custody, you should furnish this bank or appropriate branch a statement certifying to such loss or destruction with proper identification of the lost stock and full particulars of the occurrence. If receipts con signed to a depositary are spoiled or voided for any reason, the depositary should mark all three copies of the receipts “ Void” or “ Cancelled” and return the originals and first copies to this bank or branch with the next remittance letter (Form WT-3), which will be furnished by this bank or appropriate branch. The procedure to be followed by depositaries in the issuance of depositary receipts is set forth generally in section 7 of Treasury Department Circular No. 714. It is probable, however, that ques tions will arise concerning matters that are not dealt with in that circular, and the following infor mation may be of interest: (1) A depositary may consign to employers any part of the stock of depositary receipts en trusted to it, provided: (a) Such consignment is essential to expedite the work of the depositary in the acceptance of deposits of withheld taxes and issuance of receipts therefor; and (b) That the depositary understands such consignment is at its sole risk and responsibility and that it is in no way relieved of accountability for such receipt forms. (2) Depositary receipts should be made out on the typewriter, or with pen and ink, and the signature of the officer or authorized employee executing the receipts must be in ink. The A. B. A. number of remitting bank must be indicated on the receipt. (3) It is essential that the dollar amount t>e written in the receipt in addition to showing the amount of the payment in figures. Check writing machines may be used for this purpose if desired, but the amount of payment must always be shown in figures in the block provided therefor. (4) The remittance of withheld taxes must be made in exchange immediately available to this bank or branch, in accordance with the provisions of section 7 of Treasury Department Circular No. 714. The first copy of the receipts (Form 410) comprising the remittance must be listed in numerical sequence on a letter of transmittal (Form W T-3). The receipt number and amount This publication was digitized and made available by the Federal Reserve Bank of Dallas' Historical Library (FedHistory@dal.frb.org) must be listed on the letter and the total of all receipts indicated. This bank or branch will acknowledge receipt of the remittance by date and total. (5) All depositaries are requested to follow the serial number sequence to the fullest extent practicable in issuing receipts, without delaying the issuance of receipts for payments made by employers or causing complications in the operating routine of the depositary. It is understood that it will not be possible to follow a strict numerical sequence, particularly in the case of larger banks. However, in such cases, the depositary should follow the serial number sequence as closely as possible in issuing stock for use by its employees or branches so that gaps between serial numbers of receipts issued will be kept as small as possible. (6) Depositaries should not destroy or otherwise dispose of their copies of receipts until instructed by this bank or branch. (7) Only the original copy of the official depositary receipt should be issued by the depositary to an employer. (8) With respect to banks having branches, we will furnish Form 410 to the parent bank only, and the parent bank will be responsible for proper custody and use of receipts in the hands of branches even though, for operating purposes, such branches may be allowed to function sep arately in issuance of receipts, remittance of funds, and accounting for custody of receipts. (9) Depositaries are not authorized to issue employers duplicates of lost, stolen, or destroyed depositary receipts. Application for such duplicates must be filed with the appropriate Federal Reserve bank or branch by the employers concerned. (10) Depositaries will accept payments from employers irrespective of dates and amounts of such payments in relation to the liability or duty of the employer and requirements of law or regulations relative to such payments. Depositaries should not advocate payments of withheld taxes more frequently than once each month; however, if more frequent payments are tendered by employers, their acceptance is permissible. Payments by employers whp withhold one hun dred dollars or less during the month may be accepted when tendered. (11) Employers may make their payments of withheld taxes to any bank designated and qual ified as a depositary pursuant to Treasury Department Circular No. 714 regardless of whether the employer is a customer of such depositary. However, under the provisions of the Circular, depositaries are not required to accept such payments in funds which are not immediately available to the depositary at the time of such payment. (12) Generally all matters relating to withheld taxes should be taken up by depositaries with this bank or appropriate branch. Depositaries, however, should cooperate with Collectors of Internal Revenue if the Collectors should require information relating to receipts in the per formance o f their official duties. (18) Depositaries should caution employers not to make checks, drafts, etc., for the payment of withheld taxes payable to any Federal official. (14) Each Depositary for Withheld Taxes shall open and maintain on its books a special account entitled “ Federal Reserve Bank of Dallas, Fiscal Agent of the United States—Withheld Taxes,” in accordance with section 7 of Treasury Circular No. 714. To this special account the depositary shall credit all payments of withheld taxes made to the depositary by employers for such purpose. At the time such payments are credited to such account the depositary must issue a depositary receipt using Form 410. Depositaries will be required to furnish this bank or branch with a detailed monthly statement of the special “ Taxes Withheld” account maintained on their books. (15) A depositary may in lieu of making payment to another depositary qualified for the same purpose, deposit taxes withheld from wages of its own employees directly to the credit of the special account “ Withheld Taxes.” For such payment the depositary will issue to itself, as an employer, Depositary Receipt, Form 410. All questions or requests for further information in connection with this work should be addressed to this bank or branch to which the depositary is attached. FEDERAL RESERVE BANK OF DALLAS, Fiscal Agent of the United States