View PDF

The full text on this page is automatically extracted from the file linked above and may contain errors and inconsistencies.

FEDERAL RESERVE BANK OF DALLAS
FISCAL. A G E N T O F TH E UN ITED S T A T E S

Dallas, Texas, December 6,1949

NEW PLAN FOR DEPOSIT OF WITHHELD
INCOME TAXES AND SOCIAL SECURITY TAXES

To All Banking Institutions in the
Eleventh Federal Reserve District:

The Treasury Department has announced a new plan for making deposits of income
taxes withheld and employment (social security) taxes payable under the Federal Insur­
ance Contributions Act effective with wages paid on and after January 1, 1950. These
taxes are designated in Treasury Department Circular No. 848 as “ Federal Taxes.”
The new procedure permits employers to forward such deposits directly to the Federal
Reserve Bank serving the territory in which the employer is located; or, employers have
the option of making remittances to commercial banks which have been authorized to
accept such deposits for transmittal to Federal Reserve banks.
Under the new plan, banking institutions will not receive reimbursement from the
Treasury Department for any services rendered to their customers in handling withheld
and social security taxes. However, banks desiring to do so will receive benefits under the
system through the holding of Government deposits in their Treasury Tax and Loan
Accounts, now known as War Loan Accounts.
Treasury Department circulars and forms pertaining to the new tax plan are enclosed,
and are briefly described as follows:
1.
Treasury Department Circular No. 848 provides that each banking institution,
regardless of whether it has previously qualified under the provisions of Treasury Depart­
ment Circular No. 714 to receive withheld tax deposits, must be duly qualified by a Federal
Reserve bank before it may accept deposits of Federal Taxes from employers with respect
to wages paid on and after January 1, 1950. Application for such qualification should be
made on Treasury Department Form No. 469 (Application-Agreement) accompanied by
Treasury Department Form No. 460 (Resolution Authorizing Execution of ApplicationAgreement) and these forms forwarded to the head office of this bank for approval. Bank­
ing institutions will be notified when their applications have been approved and will be
furnished detailed instructions as to the manner in which Federal Depositary Receipts
(Treasury Department Form No. 450) should be forwarded to this bank. Banking institu­
tions which qualify under the terms of this circular will be designated as “ Depositaries for
Federal Taxes.”
*

This publication was digitized and made available by the Federal Reserve Bank of Dallas' Historical Library (FedHistory@dal.frb.org)

The following’ principal points of procedure are to be observed by banks which qualify
to accept deposits of Federal Taxes from employers:
a. Depositaries for Federal Taxes may accept from employers remittances in the
form of check, postal money-order, etc., covering the amount of Federal taxes
(withheld income and employment taxes), but only when accompanied by a Federal
Depositary Receipt, Treasury Department Form No. 450, on which the employer
has inscribed, by ink or typewriter, his name, address, employer’s identification
number, amount of Income Tax withheld, amount of F.I.C.A. (employment) taxes,
and total amount of taxes. In this connection, it should be noted that depositaries
may not accept from employers any form of receipt to accompany their remittance,
other than the official form of the U. S. Treasury Department, No. 450. (See Exhibit
B in Treasury Department Circular No. 848). Collectors of Internal Revenue will
furnish each employer with a Federal Depositary Receipt, Form No. 450, inscribed
with his name and address, for the employer’s use in making his initial deposit of
taxes under the new plan. This is the only such receipt form which will be furnished
employers by Collectors of Internal Revenue. Thereafter, the Federal Reserve
bank, when returning to the employer the authenticated receipt evidencing the
deposit, will enclose a blank receipt form (No. 450) for the employer’s use in
making his next deposit. If for any reason an employer may require additional
blank Forms No. 450, he should request them from this bank, stating his employer’s
identification number and the name and address of the bank upon which he nor­
mally draws his checks. Supplies of Form No. 450 will not be furnished commercial
banks for distribution to employers.
b. Depositaries will not be required to accept from employers funds which are not
immediately available to depositaries at the time of deposit.
c. Depositaries may issue a memorandum or counter receipt, if requested to do so by
employers, evidencing receipt of the employer’s deposit by the depositary. Such
receipt should clearly state that employers must not attach memorandum receipts
to their tax returns as evidence of deposit of taxes. Only official depositary receipts,
which have been validated by a Federal Reserve bank, will be accepted by Collectors
of Internal Revenue. Memorandum receipts, if used, must be furnished at the
depositary’s own expense. Exhibit C to Treasury Department Circular No. 848
contains a specimen form of memorandum receipt suitable for this purpose. It is
suggested that in the event a depositary issues a memorandum receipt, the identifi­
cation number of the employer to whom the receipt is issued be written on the
receipt.
d. Depositaries must identify each Federal Depositary Receipt on the reverse side
thereof with its name and the date on which the deposit was received from the
employer.
e. While depositaries will be permitted to hold funds in their Treasury Tax and Loan
Accounts (now known as War Loan Accounts) until called for by the Treasury
through the Federal Reserve banks, they will be required to forward daily, at the
close of business, to this bank or the appropriate branch, all Federal Depositary
Receipts received during the day, with
(1) appropriate advice that such funds have been credited in the Treasury Tax
and Loan Account of the depositary, if the funds are to be so credited, or
(2) cash remittances in funds which are immediately available at this bank or the
appropriate branch.
Compliance with the requirement for daily transmission to Federal Reserve banks
of the Federal Depositary Receipts is extremely important in order that the receipt
forms may be validated and returned to employers as promptly as possible.
f. Depositaries will be expected to maintain adequate records of deposits received
from employers so that the depositary will be able to identify such deposits in the
event depositary receipts should be lost in shipment. For this purpose it will only
be necessary to maintain a record, for each receipt, of the date of payment, the
employer’s identification number, and the total amount of taxes covered by such
receipts. In this connection, copies of memorandum or counter receipts, or copies
of the depositary’s transmittal letters to this bank or branch listing each individual
deposit and employer’s identification number, may be used for such record.

g. It is extremely important that depositaries verify that the total of the two classes
of taxes (i.e. withheld taxes and social security taxes) on each depositary receipt
is correct, and that this total is in exact agreement with the total amount of the
tax deposited, as well as the total amount shown on the depositary receipt.
2. Treasury Department Circular No. 92, Revised, provides a method whereby deposi­
taries qualified under the terms of that Circular may receive deposits in their Treasury
Tax and Loan Accounts, which will be the name, effective January 1, 1950, of the accounts
now known as War Loan Deposit Accounts, in an amount equal to the amount of checks
drawn on them by employers and forwarded directly to Federal Reserve banks in payment
of Federal Taxes. This will be accomplished by means of a “ Special Draft for Credit in
Treasury Tax and Loan Account” (Treasury Department Form No. 458). These special
drafts will be forwarded directly to depositaries by the Federal Reserve banks. Deposi­
taries receiving such drafts should forward them for collection in the same manner as any
other check or cash item, if they desire to credit the proceeds of such drafts in their
Treasury Tax and Loan Accounts. Depositaries will assume all risks of collection in trans­
mitting these special drafts to the Federal Reserve banks for payment. Terms and condi­
tions governing the use of these drafts are more fully described in Treasury Department
Circular No. 92, Revised, paragraphs 18-22.
Forms used in connection with War Loan Account transactions will be replaced with
corresponding forms incorporating the new account name “ Treasury Tax and Loan
Account” as new supplies are printed; in the meantime, qualified depositaries should con­
tinue the use of “War Loan Deposit” forms now on hand.
3. Treasury Department Circular No. 660, First Amendment to First Supplement,
provides for the redemption of 2% Depositary Bonds, Second Series, as of the close of
business February 28, 1950. These bonds will earn interest for the months of January and
February, 1950.
4. Treasury Department Circular No. 714, Fifth Amendment, provides for discontinu­
ing the present depositary receipt system, effective January 31, 1950. It should be noted
that depositaries presently qualified under that Circular may receive deposits from employ­
ers during January, 1950, representing taxes withheld from the wages of their employees
prior to January 1, 1950, using the present depositary receipt Form No. 410 covering 1949
tax payments. Instructions as to the disposition to be made of remaining unused deposi­
tary receipt Forms No. 410 will be issued prior to January 31. Under no circumstance,
should receipts covering taxes withheld from the wages of employees prior to January 1,
1950, be intermingled with deposits representing taxes withheld after that date. Separate
transmittal letters should be prepared in each instance.
It is urged that each bank desiring to qualify as a Depositary for Federal Taxes under
the new procedure, submit to this bank completed “ Application-Agreement” and “ Resolu­
tion Authorizing Execution of Application-Agreement” forms as early in December as
possible. Further information concerning the new tax plan will be gladly furnished upon
request.
Yours very truly,
R. R. GILBERT
President

SPECIAL DEPOSITS OF PUBLIC MONEYS UNDER THE ACT OF CONGRESS APPROVED
SEPTEMBER 24, 1917, AS AMENDED. (SECOND LIBERTY BOND ACT, AS AMENDED)

1949

T reasury D e p a r t m e n t ,
Office of t h e Secretary ,

D ep a rt m e n t Circular N o. 92 (Revised)

Fiscal Service— Bureau of Accounts

Washington, November 10,19^9.

To Federal Reserve Banks and other incorporated banks and trust companies in the United States
(including the District of Columbia), the Territories of Alaska and Hawaii, Puerto Rico, the
Virgin Islands, and the Panama Canal Zone:
Department Circular No. 92 (Revised), dated December 15, 1943, as amended, is revised, effec­
tive January 1,1950, to read as follows:
Banks and trust companies designated and qualified pursuant to the terms of this circular are
given the title “ Special Depositaries of Public Moneys” and are hereinafter referred to as “ Special
Depositaries.” Special Depositaries are permitted to make payment in the form of a deposit credit
for the purchase price of United States Government obligations purchased by such banks or trust
companies for their own account or for the account of their customers, who enter their subscrip­
tions through these banks or trust companies, when this method of payment is permitted under
the terms of the circulars inviting subscriptions to such issues. Special Depositaries also are per­
mitted to establish, subject to the conditions hereinafter prescribed, deposit credit on their books
for funds representing income taxes withheld under Section 1622 of the Internal Revenue Code
(Subchapter D of Chapter 9 of the Internal Revenue Code) and employment taxes under the Fed­
eral Insurance Contributions Act, as amended (Subchapter A of Chapter 9 of the Internal Revenue
Code). The deposit credits set up under this designation are called “ Treasury Tax and Loan Ac­
counts.” Under this arrangement the large sums of money raised by the Treasury through financ­
ing operations and from deposits of certain taxes are left on deposit in local banking institutions
until the Treasury needs to withdraw them to meet Government expenditures, thus avoiding the
dislocations in the banking system which might result from immediate withdrawal of such funds.
G eneral Provisions

1. All incorporated banks and trust companies in the United States (including the District of
Columbia), the Territories of Alaska and Hawaii, Puerto Rico, the Virgin Islands, and the Panama
Canal Zone, are hereby designated, subject to qualification in accordance with the provisions of this
circular, as Special Depositaries for receiving deposits of public moneys as authorized by the Act
of Congress approved September 24, 1917, as amended (Second Liberty Bond Act, as Amended),
hereinafter referred to as the A c t; Provided, That no bank or trust company shall perform any of
the acts covered by this designation until it has qualified so to act in the manner herein prescribed.
2. Any incorporated bank or trust company desiring to participate in the deposit of public
moneys as authorized by the Act should apply for qualification through the Federal Reserve Bank
of its district. Such application must be in Form H-5, hereto attached, and must be accompanied
by a certified copy of a resolution, duly adopted by the Board of Directors of the applicant, in Form
J-5, hereto attached. For the purpose of this circular, banks and trust companies located in the
Territories of Alaska and Hawaii will be considered as being located in the San Francisco Federal
Reserve district, and banks and trust companies located in Puerto Rico, the Virgin Islands and the
Panama Canal Zone will be considered as being located in the New York Federal Reserve district.
No incorporated bank or trust company which has made application for qualification shall act as
a Special Depositary under the terms of this circular until it receives from the Federal Reserve
Bank notice of approval of the application.
(1)

16— 60164-1

3. Special Depositaries already qualified to a sufficient amount pursuant to Department Circu­
lar No. 92, as previously revised and amended, will not be required to file new formal applications
or resolutions, but they will, by the acceptance or retention of deposits after December 31, 1949,
be conclusively presumed to have assented to all the terms and provisions hereof, and to the reten­
tion of collateral security theretofore pledged as collateral security hereunder.
4. A Special Depositary, heretofore or hereafter qualified, which having subscribed to an offer­
ing of United States bonds, notes, certificates of indebtedness, or Treasury Bills and having in due
course received an allotment on its subscription refuses to receive the said allotment and to make
payment therefor, or otherwise fails to comply with the provisions of this circular, may be discon­
tinued. A Special Depositary discontinued for any reason may be requalified by the Federal Re­
serve Bank of its district upon full compliance with the terms of this circular.
5. In fixing the maximum amount of deposits for which it will apply, the applicant bank or
trust company should be guided by the amount of the payments which it expects to make on sub­
scriptions made by or through it for bonds, notes, certificates of indebtedness, and Treasury Bills
of the United States issued under authority of the Act, and deposits of taxes it expects to receive
under Department Circular No. 848, and, as well by any statutory limitations upon the amount o f
deposits which the applicant bank or trust company may receive from any one depositor.
6. Determination as to the maximum amount of deposits for which a Special Depositary may
qualify is committed to the Federal Reserve Banks acting under the direction of the Secretary o f
the Treasury.
Collateral S ecurity

7.
Special Depositaries will be required, before receiving deposits, to pledge as collateral secu
rity for such deposits securities of any of the following classes, to an amount, taken at the rates
and conforming to the conditions provided below, at least equal to such deposits; provided, that no
collateral security shall be required for such part of the deposits as are insured under section 12B
of the Federal Reserve Act, as amended:
(a) United States Government Securities.— Transferable bonds, notes, certificates of indebted­
ness, and Treasury Bills of the United States Government of any issue, including interim certificates
or receipts for payment therefor, except such securities as by the terms of their issue are not accept­
able as security for deposits of public moneys; all at face value.
(b) Obligations Guaranteed by the United States.— Obligations fully and unconditionally guar­
anteed by the United States both as to principal and interest; all at face value.
(c) Obligations of Government Agencies.— Obligations of the Federal Land Banks, Federal
Intermediate Credit Banks, Federal Home Loan Banks, the Federal National Mortgage Associa­
tion, and the Central Bank for Cooperatives; all at face value.
(d) Obligations of Local Public Agencies and Public Housing Agencies.— (1) Obligations of
a local public agency (as defined in section 110 (h) of the Housing Act of 1949) or of a public
housing agency (as defined in the United States Housing Act of 1937, as amended) which have a
maturity of not more than eighteen months, if such obligations are secured by an agreement be­
tween the obligor agency and the Housing and Home Finance Administrator or the Public Housing
Administration in which the agency agrees to borrow from the Administrator or Administration,
and the Administrator or Administration agrees to lend to the agency, prior to the maturity of
such obligations, moneys in an amount which (together with any other moneys irrevocably com­
mitted to the payment of interest on such obligations) will suffice to pay the principal of such obli­
gations with interest to maturity, which moneys under the terms of said agreement are required
to be used for that purpose, and (2) obligations of such a public housing agency as are secured by
a pledge of annual contributions under an annual contributions contract between such public hous­
ing agency and the Public Housing Administration if such contract shall contain the covenant by
2

16— 601 64 -1

the Public Housing Administration which is authorized by subsection (b) of section 22 of the
United States Housing Act of 1937, as amended, and if the maximum sum and the maximum period
specified in such contract pursuant to said subsection 22 (b) shall not be less than the annual amount
and the period for payment which are requisite to provide for the payment when due of all install­
ments of principal and interest on such obligations. These obligations may be accepted at face
value.
(e) Philippine Islands, Insular, and Territorial Government Securities.— Bonds and certifi­
cates of indebtedness of the Philippine Islands, issued prior to May 1, 1934, under authority of
Acts of Congress of the United States, bonds of Puerto Rico and bonds of the Territory of Hawaii;
all at market value, not to exceed face value.
(f) State Bonds.— Bonds of any State of the United States, at market value, not to exceed
face value.
(g) State Notes, Certificates of Indebtedness, and Warrants.— Approved notes, certificates of
indebtedness, and warrants issued by any State o f the United States; at 90 percent of market value,
not to exceed face value.
(h) County and Municipal Securities.— Approved bonds of any county, city, or other political
subdivision in the United States; and approved notes, certificates of indebtedness, and warrants
with a fixed maturity issued by any county or city in the United States, which are direct obliga­
tions of the county or city as a whole, or which are payable from general taxes levied on all taxable
property in such county or city; provided the obligations meet the requirements of the Comptroller
of the Currency, the Board of Governors of the Federal Reserve System and the Federal Deposit
Insurance Corporation for classification by bank examiners under Group I, as follows:
Group I securities are marketable obligations in which the investment characteristics are not
distinctly or predominantly speculative. This group includes general market obligations in
the four highest grades and unrated securities of equivalent value.
Obligations of counties, cities, and other political subdivisions, rated in one of the three highest
grades by a recognized investment service organization regularly engaged in the business of rating
or grading bonds, may be accepted at 90 percent of market value, not to exceed face value, and
other qualified obligations of counties, cities, and other political subdivisions may be accepted at
80 percent of market value, not to exceed face value.
(i) Corporate Securities.— Approved bonds, notes, and other obligations of domestic corpora­
tions, provided they meet the requirements for classification under Group I as defined in subpara­
graph (h )— “ County and Municipal Securities”— at 80 percent of market value, not to exceed face
value.
(j) Commercial and Agricultural Paper and Bankers’ Acceptances.— Commercial and agri­
cultural paper and bankers’ acceptances having a maturity at the time of pledge of not to exceed
six months, and notes of correspondent incorporated banks or trust companies secured by such
commercial or agricultural paper or bankers’ acceptances, all of which are approved by the Fed­
eral Reserve Bank of the district in which the depositary is located; at 80 percent of face value.
(k) Obligations of the International Bank fo r Reconstruction and Development.— Obligations
issued or guaranteed by the International Bank for Reconstruction and Development, all at face
value.
8.
The Secretary of the Treasury reserves the right to require all or any stated percentage of
deposits received by any bank pursuant to the provisions of this circular and not insured under sec­
tion 12B of the Federal Reserve Act, as amended, to be secured by pledge of United States Govern­
ment securities or obligations guaranteed by the United States as defined in subparagraphs 7 (a)
and 7 (b) above.
3

10— 60164-1

9. The stipulations as to the rates at which collateral may be accepted hereunder are intended
to indicate maximum values only and the right is expressly reserved to call for or require addi­
tional collateral security at any time.
10. The approval and valuation of securities is committed to the several Federal Reserve Banks,
acting under the direction of the Secretary of the Treasury. The withdrawal of securities, the
pledge of additional securities, and the substitution of securities shall be made from time to time
as required or permitted by the Federal Reserve Banks, acting under like direction.
Custody of Securities
11. All securities accepted as collateral security for deposits hereunder must be deposited with
the Federal Reserve Bank or Branch of the district in which the depositary is located, as fiscal agent
of the United States, or by the direction of and subject to the order of such Federal Reserve Bank
or Branch, as fiscal agent of the United States, with a custodian or custodians within the United
States designated by such Federal Reserve Bank, and under such terms and conditions as it may
prescribe.
Deposits in Treasury Tax and Loan Account
12. Each qualified Special Depositary will be required to open and maintain or continue for
the account of the Federal Reserve Bank of its district, as fiscal agent of the United States, a sepa­
rate account for deposits to be made under this circular, to be known as the “ Treasury Tax and Loan
Account.”
13. Qualified Special Depositaries, if and to the extent from time to time hereafter authorized
by the Secretary of the Treasury, may be permitted t o :
(a) Make payment by credit, when due, to the Treasury Tax and Loan Account, of amounts
payable on subscriptions made by or through them, for bonds, notes, certificates of indebtedness,
and Treasury Bills of the United States issued under authority of the Act of September 24, 1917,
as amended, in the manner hereinafter prescribed.
(b) Deposit in the Treasury Tax and Loan Account, in the manner hereinafter prescribed,
such funds representing deposits of income taxes withheld and employment taxes under the Fed­
eral Insurance Contributions Act, as may be made by employers with such bank when acting as a
Depositary for Federal Taxes, under Department Circular No. 848.
(c) Deposit in the Treasury Tax and Loan Account, in the manner hereinafter prescribed,
funds representing income taxes withheld and employment taxes under the Federal Insurance
Contributions Act deposited by employers with a Federal Reserve Bank, in an amount not exceed­
ing the amount of checks drawn on the depositary bank by employers when remitting such taxes
to the Federal Reserve Bank.
14. The amount deposited with any Special Depositary shall not in the aggregate exceed at any
one time (a) the maximum amount for which it shall have been qualified as a depositary, nor (b)
the aggregate amount of the collateral security pledged by it taken at the rates hereinbefore nrovided, excepting that part of the deposits insured under section 12B of the Federal Reserve Act,
as amended.
How Deposits Are To Be Made
15. In order to make payment by credit to its Treasury Tax and Loan Account for amounts
payable in transactions described in subsection (a) of section 13 above, the Special Depositary must,
on or before the date when such payment is due, notify the Federal Reserve Bank of the district
of such intention and issue a certificate of advice to such Federal Reserve Bank, stating that a sum
specified has been deposited with such depositary for the account of such Federal Reserve Bank,
as fiscal agent of the United States, in the Treasury Tax and Loan Account. Such certificate o f
advice will be furnished in the form and manner prescribed by the Federal Reserve Bank.
4

16 — 60164-1

16. Likewise the Special Depositary must issue a certificate of advice, in the manner outlined in
the preceding paragraph, and in accordance with the provisions of Department Circular No. 848, if it
elects to deposit in its Treasury Tax and Loan Account funds representing deposits of taxes de­
scribed in subsection (b) of section 13 above.
17. Special Depositaries may elect, at their option subject to the conditions hereinafter pre­
scribed, to deposit in their Treasury Tax and Loan Accounts funds equivalent to the amount of
checks drawn on them by employers when remitting taxes to a Federal Reserve Bank, as described
in subsection (c) of section 13 above. Such deposits shall be made on the basis of documents en­
titled “ Special Draft for Credit in Treasury Tax and Loan Account” (Form 453), attached hereto
as Exhibit C, which will be prepared and transmitted to the depositary by Federal Reserve Banks.
The terms and conditions governing the use of these special drafts are set forth in the following
section.
Special Draft for Credit in Treasury Tax and Loan Account
18. A Special Draft for Credit in Treasury Tax and Loan Account, in the form prescribed in
Exhibit C hereof, will be prepared daily by each Federal Reserve Bank for each Special Depositary
in its district upon which checks are drawn by employers when remitting to a Federal Reserve
Bank the amount of income taxes withheld and employment taxes under the Federal Insurance Con­
tributions Act. A single special draft will be prepared daily for the aggregate amount of such
checks drawn on each depositary. Each Federal Reserve Bank will take note of checks received by
it covering such taxes, which are drawn on commercial banks located in other Federal Reserve dis­
tricts, and will notify the Federal Reserve Bank of the district in which such commercial banks are
located of the aggregate amount of such checks drawn on each commercial bank. Thus, the amount
of the special draft will include the total amount of checks drawn on a Special Depositary, which
are received directly by the Federal Reserve Bank preparing the draft, together with the aggregate
amount of checks drawn on such depositary, which were remitted by employers to other Federal
Reserve Banks.
19. Pursuant to authority contained in this circular, the Special Depositary may exercise its
option of depositing in its Treasury Tax and Loan Account moneys in an amount equal to the
amount of the special draft by executing such draft and presenting it to the Federal Reserve Bank
upon which it is drawn, in accordance with the terms and provisions appearing on the face of the
special draft and hereinafter described. Upon proper execution and timely presentation according
to the terms thereof, the special draft will be paid by the Federal Reserve Bank on which drawn,
as Fiscal Agent of the United States, by charge to the General Account of the Treasurer of the
United States.
20. The Special Depositary shall execute the special draft by signing and dating it in the
spaces provided on the face thereof. Execution of the draft will constitute certification that the
amount shown has been credited by the Special Depositary to the Federal Reserve Bank on which
drawn, as Fiscal Agent of the United States, Treasury Tax and Loan Account.
21. The Special Depositary, if a member of the Federal Reserve System, or non-member clear­
ing bank, should transmit the executed special draft to a correspondent member bank or directly
to the Federal Reserve Bank or Branch in which the depositary’s reserve or clearing account is
maintained. Non-member depositaries should transmit the special draft through their correspond­
ent banks which are members of the Federal Reserve System or non-member clearing banks. All
special drafts transmitted through a correspondent bank should be restrictively endorsed by the de­
positary on the reverse thereof in favor of the correspondent bank. Such correspondent banks
will endorse, date, and present for payment, the special draft to the Federal Reserve Bank or Branch
on which drawn. All risks of collection of special drafts shall be borne by the Special Depositaries
in whose favor they are drawn.
22. The special draft should be presented to the Federal Reserve Bank or Branch before the
expiration of the number of business days specified on the face of the special draft, in order to
5

16- 60164-1

receive credit therefor. The Federal Reserve Bank will specify on the face of the special draft,
at the time of preparation, the number of business days within which it should be presented, which
period of time will be based upon normal check collection schedules for the point at which the Spe­
cial Depositary is located. The Federal Reserve Bank may, in its discretion, reject any special
draft not presented within the time specified on the face thereof.
Withdrawal of Deposits
23. All deposits will be payable on demand without previous notice. Calls for withrawals of
deposits with Special Depositaries will be made by direction of the Secretary of the Treasury
through the Federal Reserve Banks, and such depositaries will be required to arrange for pay­
ments of such calls in funds that will be immediately available on the payment due date.
24. The right is reserved to amend or supplement or revise the provisions of this circular at
any time or from time to time.
JOHN W. SNYDER,
Secretary of the Treasury.
Attachments

6

16- 60164-1

EXHIBIT A

D epartment Circular N o. 92 (Revised)

FORM H-5— BUREAU OF ACCOUNTS
(Revised November 10, 1949)

APPLICATION FOR DEPOSITS

(City and State)

(Date)

To the Federal Reserve Bank o f ______________________ , fiscal agent of the United States:
The undersigned bank or trust company, in accordance with the provisions of Treasury De­
partment Circular No. 92 (revised November 10, 1949), and pursuant to due action of its board of
directors, hereby makes application for the deposit of public moneys with it from time to time
under the Act of Congress approved September 24, 1917, as amended, the aggregate amount of
such deposits not to exceed at any one time $__________________ ; and assigns and agrees to pledge,
from time to time to and with the Federal Reserve Bank o f _____________________ , as fiscal agent
of the United States, as collateral security for such deposits as may be made from time to time pur­
suant to this application, securities of the character and amount required by said circular.

B y ---------------------------------------------President (Vice President)

[SEAL]

Street
City or Town
State

7

16— 60164-1

Department Circular N o. 92 (Revised)

EXHIBIT B

FORM J-5— BUREAU OF ACCOUNTS
(Revised November 10, 1949)

RESOLUTIONS AUTHORIZING APPLICATION FOR DEPOSITS

(City and State)

(Date)

I H ereby Certify that the following resolutions were duly adopted at a meeting of the board
of directors of the below-named bank (trust com pany), which meeting was duly called and duly

held on th e __________ day o f __________________, 19____ , a quorum being present, and that the said
resolutions were spread upon the minutes of said meeting:
R esolved , That in accordance with the provisions of Treasury Department Circular No. 92
(revised November 10, 1949), this bank (trust company) makes application for the deposit of pub­
lic moneys with it from time to time under the Act of Congress approved September 24, 1917, as

amended, the aggregate amount of such deposits not to exceed at any one time ______________ •
and assigns and agrees to pledge from time to time to and with the Federal Reserve Bank o f
_____________________ , as fiscal agent of the United States, as collateral security for such deposits
as may be made from time to time, pursuant to such application, securities of the character and
amount required by said circular; and
R esolved , That

of the undersigned bank (trust company), is hereby authorized to make application, assignment,
and agreement as aforesaid, and from time to time to deliver to and pledge with said Federal Re­
serve Bank, or any custodian or custodians appointed by it, securities of the undersigned bank
(trust company) of a character and amount at least sufficient to secure such deposits according to
the terms of said Treasury Department circular, and from time to time to withdraw securities and
to substitute other securities and to pledge and deposit additional securities.
I n W itn ess W hereof I have hereunto signed m y name and affixed the seal of

(Nasie o f bank)

(City and State)

[ seal ]

_________________________________
Cashier (Secretary)*

*Insert title (s) of authorized officer (s).

8

16- 60164-1

D epartment Circular N o. 92 (Revised)

EXHIBIT C

SPECIAL DRAFT FOR CREDIT IN TREASURY TAX AND LOAN ACCOUNT
2-30
710

FEDERAL RESERVE B ANK OF CHICAGO

U . S. T r e a s u r y D e p a r t m e n t — F o r m 453
F is c a l S e r v ic e — B u re a u o f A c c o u n t s

FISCAL AGENT OF TH E UNITED STATES

1234567

CHICAGO. ILL.

SPECIAL DRAFT FOR CREDIT IN TREASURY TAX AND LOAN ACCOUNT

PAY T O TH E NAMED DEPOSITARY OR ORDER TH E AMOUNT SHOWN BELOW. WHICH CONSTITUTES A TRANSFER FROM TH E ACCOUNT OF THE TREASURER OF THE
UNITED STATES, PURSUANT TO TREASURY DEPARTMENT CIRCULAR NO. 92 REVISED, BY TH E ABOVE FEDERAL RESERVE BANK. TO TH E NAMED DEPOSITARY, OF AN
AMOUNT NOT EXCEEDING TH E AMOUNT OF CHECKS DRAWN UPON TH E LATTER AND DEPOSITED AS TAXES WITH THE FEDERAL RESERVE BANK FOR CREDIT TO TH E
TREASURER OF TH E UNITED STATES.
THIS DRAFT SHOULD BE PRESENTED TO
TH E FEDERAL RESERVE BANK OR BRANCH
FOR C R ED ITB E FO R E TH E EXPIRATION OF

DATE OF ADVICE
MO.

DAY

YR.

BUSINESS DAYS FROM TH E DATE OF
ADVICE SHOWN HEREON.

AMOUNT CREDITED

MEMBER BANKS AND NONMEMBER CLEARING BANKS SHOULD FOR­
WARD THIS DRAFT FOR CREDIT TO A CORRESPONDENT MEMBER BANK
OR DIRECTLY TO THE FEDERAL RESERVE BANK OR BRANCH WITH
WHICH THEIR RESERVE OR CLEARING ACCOUNT IS MAINTAINED.
NONMEMBER BANKS SHOULD FORWARD THIS DRAFT FOR CREDIT
TO A CORRESPONDENT MEMBER OR NONMEMBER CLEARING BANK.

<o

I certify that the amount shown above has been credited by the depositary to the above Federal
Reserve Bank as Fiscal Agent of the United States Treasury Tax and Loan Account, pursuant to
Treasury Department Circular No. 92—Revised, to be held subject to withdrawal on demand.
(Authorized Signature)
(O V E R )

.£_2

O d, 4
0

CO

Ll
L
LU
CO

c
e
O
O
z

LU

d) C cd
D

KT3 ±1
W "O o O
_ CL Q.
C "O
D

1

*“ > _Q
O 0)

<
D

O _£Z

16- 60164-1

U. S. GOVERNMENT P RI NT IN G OF F IC E

UNITED STATES OF AMERICA
2 PERCENT DEPOSITARY BONDS
SECOND SERIES

1949
Departm ent C ir c u la r No. 660
F i r s t Amendment
t o F i r s t Supplement

F i s c a l S e r v ic e
Bureau o f th e P u b lic Debt

TREASURY DEPARTMENT
O f f i c e o f the S e c r e t a r y
W ashington, November 10, 1949

The is s u e o f 2 P e rce n t D e p o s ita r y Bonds, Second S e r i e s , under the
F i r s t Supplem ent, d a ted June 29, 1943, to Department C ir c u la r No. 660,
i s h ereb y te rm in a ted as o f th e c l o s e o f b u s in e s s January 1, 1950.
A l l 2 P e rce n t D e p o s ita r y Bonds, Second S e r i e s ,

o u ts ta n d in g on

F ebruary 28, 1950, w i l l be redeemed as o f the c l o s e o f b u s in e s s on th a t
d a te.

N o tic e o f redem ption w i l l be g iv e n to the h o ld e r s o f such bonds

as p r o v id e d by the term s t h e r e o f .

JOHN W. SNYDER
S e c r e t a r y o f th e T rea su ry

REGULATIONS GOVERNING THE PAYMENT THROUGH DEPOSITARY
BANKS OF FUNDS WITHHELD AS TAXES IN ACCORDANCE PITH
THE PROVISIONS OF THE CURRENT TAX PAYMENT ACT OF 1943

1949
Departm ent C ir c u la r No. 714
F i f t h Amendment

F i s c a l S e r v ic e
Bureau o f A ccou n ts

TREASURY DEPARTMENT
OFFICE OF THE SECRETARY
W a sh in gton , D. C.
November 1 0 , 1949

The q u a l i f i c a t i o n o f a l l D e p o s it a r ie s f o r W ith h eld T a x e s , q u a l i f i e d
pursuant t o T re a su ry Department C ir c u la r No. 714* d a ted June 25* 1943*
as amended, w i l l b e te rm in a te d as o f t h e c l o s e o f b u s in e s s F ebruary 28,
1950$ p r o v id e d , h ow ever, th a t no su ch q u a l i f i e d d e p o s i t a r y i s a u th or­
i z e d t o r e c e i v e from em p loyers a f t e r January 3 1 , 1 9 5 0 , fu n ds w it h h e ld
as t a x e s pursuant t o the C urrent l a x Payment A ct o f 1943* as amended;
and p r o v id e d f u r t h e r , t h a t no d e s ig n a t e d bank s h a l l be q u a l i f i e d , under
th e p r o v i s i o n s o f t h i s c i r c u l a r , a s a D e p o s it a r y f o r W ith h eld T a x e s,
a f t e r January 31* 1950. N o t i f i c a t i o n o f t e r m in a t io n o f q u a l i f i c a t i o n
w i l l b e g iv e n t o each d e p o s i t a r y as p r o v id e d i n S e c t io n 9 o f Department
C ir c u la r No* 714* as amended.
The 2 P e rce n t D e p o s it a r y B onds, Second S e r i e s , w h ich have been
a l l o t t e d t o banks q u a l i f i e d and a c t in g as D e p o s it a r ie s f o r W ith h eld
T axes w i l l b e redeem ed a s o f the c l o s e o f b u s in e s s on F ebruary 2 8,
1 950, i n a cco rd a n ce w i t h n o t i c e o f red em p tion w h ich w i l l be g iv en t o
th e h o ld e r s o f such bonds as p r o v id e d b y th e term s t h e r e o f .
E f f e c t i v e January 1 , 1 95 0 , a new p ro ce d u re w i l l be a d op ted f o r
h a n d lin g incom e ta x e s •■withheld and employment ta x e s under th e F ed era l
In su ran ce C o n tr ib u tio n s A c t , w it h r e s p e c t t o w ages p a id on and a f t e r
t h a t d a t e . Banks th a t d e s i r e t o a c c e p t d e p o s i t s o f such ta x e s from
e m p lo y e rs , under th e new p ro ce d u re a p p l i c a b l e t o wages p a id on and
a f t e r January 1 , 1 950, must b e q u a l i f i e d t o so a c t b y th e F e d e ra l
R eserv e Bank o f t h e d i s t r i c t in w h ich th ey are l o c a t e d , i n a cco rd a n ce
w ith th e p r o v i s i o n s o f Departm ent C ir c u la r No. 848, d a ted November 1 0,
1949.
*

JOHN W. SNYDER
S e c r e t a r y o f the T re a su ry

Form No. 469

TREASURY DEPARTMENT
F iscal S ervice
B ureau of A ccounts

APPLICATION-AGREEMENT, DEPOSITARY FOR FEDERAL TAXES*
The undersigned, a Designated Depositary and Financial Agent of the Government for receiving
from employers deposits of Federal taxes, as defined in United States Treasury Department Circular
No. 848, dated November 10,1949, hereby makes application to qualify pursuant to the provisions of
Section 6 of that circular, to receive such deposits and agrees as follows:
1. The undersigned in the performance of its duties as a “ Depositary for Federal Taxes,” as that
term is defined in Section 2 of United States Treasury Department Circular No. 848, dated November
10, 1949, will without compensation for its services comply with all the requirements of that circular
and any amendments or supplements thereof and instructions issued pursuant thereto.

2. The provisions of this agreement may be supplemented, amended or modified at any time
subsequent hereto by agreement in writing between the undersigned and the Secretary of the Treas­
ury, as provided in the attached resolution of its board of directors.
In W it n e ss W hereof , the undersigned has caused the signature of its officer below-named
and its corporate seal duly attested to be affixed hereto th is____ _ ____ ______________________ day of
_
________________ __________ , 19------ , intending to be legally bound hereby.

(Name of bank)

[ seal ]

B y _______ _____ ____ _______ ___________ ___
(Signature and title of officer executing agreement)

A ttest_________ ____________________
(Signature and title)

♦The execution o f this Application-Agreement must he authorized by resolution o f the Board of Directors o f the designated Depositary, a
certified copy o f which on Form 460 must accompany this Application-Agreement.
U. S. GOVERNMENT PRINTING OFFICE

18— 6 0 1 6 7 -1

Form N o. 460
TREASURY DEPARTMENT
F iscal Service
B ureau of A ccounts

RESOLUTION AUTHORIZING EXECUTION OF APPLICATION-AGREEMENT, DEPOSITARY
FOR FEDERAL TAXES
T h is Is

to

Certify , That at a meeting of the Board of Directors of

., held on
19____ , the following resolution was duly adopted:
1. “ R esolved, That*

of this bank is hereby authorized to execute on behalf of this bank the ‘Application-Agreement,
Depositary for Federal Taxes/ Treasury Department Form No. 469, such execution to be under seal
and with the attestation of an officer of this bank, other than an officer executing the Agreement.
2. “ R esolved F urth er , That any of such officers of this bank is authorized to execute in similar
form on behalf of this bank such agreements to supplement, amend, or modify the terms of such
‘Application-Agreement, Depositary for Federal Taxes/ as may from time to time be requested or
approved by the Secretary of the Treasury.

3. “ R esolved F u rth er , That any of such officers of this bank is hereby authorized to take any
action on behalf of this bank which may be required in connection with the performance of its duties
as a ‘Depositary for Federal Taxes’ as that term is defined in Section 2 of United States Treasury
Department Circular No. 848, dated November 10, 1949.”

[SEAL]

(Name and title o f certifying officer*
**)

♦Insert title (s) o f authorized officer (s).
**The officer certifying this resolution must have such authority.
U . S . GOVERNMENT P R IN T IN G O FFIC E

16— 60168-1

REGULATIONS GOVERNING THE DEPOSIT WITH FEDERAL RESERVE BANKS AND
DEPOSITARY BANKS OF EMPLOYER AND EMPLOYEE TAXES UNDER THE FEDERAL
INSURANCE CONTRIBUTIONS ACT AND OF INCOME TAX WITHHELD ON WAGES
UNDER SECTION 1622 OF THE INTERNAL REVENUE CODE
(Applicable to Wages Paid on or after January 1,1950)

1949
D epa r t m e n t C ircular N o. 848

T reasury D epa rt m en t ,
Office of t h e S ecretary ,

Washington, November 10,1949.

Fiscal Service
Bureau of Accounts

To Federal Reserve Banks, incorporated banks and trust companies, and others concerned:
1. Scope of Regulations
Pursuant to authority contained in Section 3310 (f) (2) of the Internal Revenue Code, as added
by Section 7 of Public Law 271 (81st Congress), approved August 27,1949; Section 15 of the Federal
Reserve Act, as amended (U. S. C. title 12, sec. 391) ; Section 10 of the Act of June 11,1942 (U. S. C.
title 12, sec. 265) ; and Section 8 of the Second Liberty Bond Act, as amended (U. S. C. title 31,
sec. 771), the following regulations are hereby prescribed, governing the handling and processing of
deposits made by employers with Federal Reserve Banks and depositary banks, of income taxes
withheld under Section 1622 of the Internal Revenue Code (Subchapter D of Chapter 9 of the
Internal Revenue Code), and employment taxes under the Federal Insurance Contributions Act, as
amended (Subchapter A of Chapter 9 of the Internal Revenue Code).
2. Definition of Terms
When used in this circular, the terms listed below shall have the following meaning, unless
otherwise expressly stated:
(a) “ Federal taxes” shall mean (1) income taxes withheld by employers pursuant to Section
1622 of the Internal Revenue Code, and (2) employees’ taxes withheld under Section 1401
of such Code and employers’ tax under Section 1410 of such Code; all with respect to wages
paid on or after January 1, 1950;
( b) “ Federal Reserve Banks” shall mean the several Federal Reserve Banks as fiscal agents of
the United States;
(c) “ Depositary for Federal Taxes” shall mean a designated bank or trust company that has quali­
fied, in accordance with the provisions of this circular, to receive from employers deposits of
Federal taxes, as defined above, and unless otherwise expressly stated the word “ depositary”
shall refer to a “ Depositary for Federal Taxes.”
3. Authorization of Federal Reserve Banks
Pursuant to the authority contained in Section 3310 (f) (2) of the Internal Revenue Code
and the Federal Reserve Act, as amended, the several Federal Reserve Banks, in their capacity as
fiscal agents of the United States, are hereby authorized and directed, subject to the provisions of
this circular, to receive from employers or other persons, hereinafter referred to as employers,
deposits of Federal taxes and to perform such other functions as may be prescribed by the Secre­
tary of the Treasury in connection with the handling and processing of such tax deposits. The
functions to be performed by Federal Reserve Banks are outlined hereinafter, and will be described
in detail, together with the detailed procedure to be followed in performing the required functions,
in instructions to the Federal Reserve Banks.
16— 60166-1

(1)

4. Designation of Banks Which May Be Qualified to A ct as Depositaries for Federal Taxes
Pursuant to the authority contained in Section 3310 (f) (2) of the Internal Revenue Code,
all insured incorporated banks, within the meaning of Section 10 of the Act of June 11, 1942, and
all uninsured incorporated banks and trust companies designated as “ Special Depositaries of Pub­
lic Moneys’’ under the provisions of the Act of Congress approved September 24,1917, as amended,
are hereby designated, subject to the provisions of this circular, as depositaries and financial agents
of the Government for receiving from employers deposits of Federal taxes; Provided, That no such
bank or trust company shall perform any of the acts covered by this designation until it has quali­
fied, in the manner herein prescribed, to so act. Banks and trust companies that qualify for the
purpose of receiving deposits of Federal taxes from employers will be known as “ Depositaries for
Federal Taxes.”
Banking institutions which have heretofore been designated as depositaries for withheld in­
come taxes, in accordance with the provisions of Department Circular No. 714, as amended, or as
depositaries and financial agents of the Government for the performance of certain classes of fiscal
duties, will be required to qualify under the terms of this circular in order to act as depositaries for
Federal taxes with respect to deposits by employers of Federal taxes applicable to wages paid on
or after January 1, 1950.
Incorporated banks or trust companies located in the territories and insular possessions o f
the United States, which are not insured banks within the meaning of Section 10 of the Act of June
11, 1942, but which are otherwise eligible for designation as depositaries or financial agents of the
United States, may be specifically designated by the Secretary of the Treasury under the Act of
June 19, 1922 (U. S. C. title 31, sec. 473), governing depositaries outside of the continental United
States, to act as depositaries for Federal taxes, upon qualification substantially in accordance with
the provisions of Section 5 hereof. Banks and trust companies located in the Territories of Alaska
and Hawaii should transmit applications for such designation to the Federal Reserve Bank of San
Francisco, and banks and trust companies located in Puerto Rico, the Virgin Islands and the Panama
Canal Zone should transmit applications for such designation to the Federal Reserve Bank of New
York.
5. Qualification of Designated Banks as Depositaries for Federal Taxes
Any designated bank or trust company which desires to qualify, under the terms of this cir­
cular, for receiving from employers deposits of Federal taxes without compensation for its services,
should apply for qualification through the Federal Reserve Bank of the district in which it is located.
Such application shall be made on Application-Agreement, Depositary for Federal Taxes (Form
No. 469), shown as Exhibit A of this circular. Copies of this form and instructions regarding the
application may be obtained from the Federal Reserve Bank. No designated bank, which has made
application for qualification, shall act as a Depositary for Federal taxes under the terms of this
circular until it receives from the Federal Reserve Bank notice of approval of the application.
Upon receipt of such notice, each designated bank is hereby authorized to receive deposits o f
Federal taxes from employers.
6. Procedure to be Follotved by Depositaries for Federal Taxes
There are outlined below the basic requirements of the procedure that will be observed by
Depositaries for Federal Taxes, qualified pursuant to this circular, with respect to deposits of
taxes applicable to wages paid on or after January 1, 1950. More detailed instructions will be
furnished depositaries for Federal taxes, through the Federal Reserve Banks.
(A ) Depositaries shall accept from employers, who desire to make deposits with such depositaries,
remittances in the form of check, postal money order, etc., covering the amount of Federal
taxes, accompanied by a “ Federal Depositary Receipt” (Form No. 450) on which the em­
ploye). has inscribed, in ink or typewriter, his name, address, employer’s identification nuni16— 60106-1

2

ber, amount of income tax withheld, amount of F. I. C. A. (employment) taxes, and total
amount of taxes. Depositaries will not be required to accept from employers funds which are
not immediately available to the depositary at the time of deposit, and Treasury Savings Notes,
or other public debt securities of the United States, shall not be accepted as deposits of Fed­
eral taxes under this circular. Depositaries shall not accept from employers any form of
receipt accompanying their remittances other than the prescribed receipt, Form 450, shown
as Exhibit B of this circular.
(B) If requested to do so by employers, depositaries will issue a memorandum or counter receipt
to employers evidencing receipt of funds by the depositary. It is important that memo­
randum receipts issued by depositaries clearly state that employers must not attach such
memorandum receipts to their tax returns as evidence of deposit of taxes, since only official
receipts on Form No. 450, which have been validated by a Federal Reserve Bank, will be ac­
cepted by collectors of internal revenue. A suggested form of memorandum receipt, which
shall be provided by the depositaries at their own expense, is shown as Exhibit C of this
circular.
(C) Depositaries will identify each Federal Depositary Receipt in the space provided on the reverse
thereof, by indicating the name of the depositary and the date on which the tax deposit was
received by the depositary. Depositaries should also verify each depositary receipt to de­
termine that the sum of the two classes of taxes is equal to the “ Total Taxes” inscribed on the
receipt.
(D) Depositaries shall forward daily to the Federal Reserve Bank of their district the Federal
Depositary Receipts inscribed by employers, together with payment in funds immediately
available at the Federal Reserve Bank point or advice that funds have been credited in the
Treasury Tax and Loan Account of the depositary, covering the aggregate amount of all
Federal tax deposits received during that day. (Regulations governing deposits in Treasury
Tax and Loan Accounts are contained in Treasury Department Circular No. 92, Revised.)
Each transmittal will be accompanied by a transmittal letter in the form prescribed by the
Federal Reserve Banks. It is important that the Federal Depositary Receipts be forwarded
daily in order that they may be validated by the Federal Reserve Bank and returned directly
to the respective employers without delay, together with a blank Federal Depositary Receipt for
the employer’s use in making his next deposit.
(E) Depositaries will establish, prior to transmittal to the Federal Reserve Bank, an adequate
record of all deposits received from employers, so that the depositary will be able to identify
deposits in the event depositary receipts are lost in shipment between depositaries and Fed­
eral Reserve Banks. For this purpose, it will only be necessary to maintain a record of the
date of payment, the employer’s identification number and the total amount of tax deposit;
therefore, copies of memorandum receipts and copies of the depositary’s transmittal letter, if
individual deposits and employers’ identification numbers are listed separately, could be used
to provide the necessary information.
7. Issuance of Replacement Receipts: Inquiries from Employers
In the event a depositary receipt, which has been validated by a Federal Reserve Bank, is lost,
stolen, or destroyed before it is forwarded to a collector of internal revenue with the employer’s
quarterly Federal tax return on Form 941, the employer will be issued a replacement receipt upon
proper application and submission of required evidence to the Federal Reserve Bank which vali­
dated the receipt. Such issuance of replacement receipts will be governed by requirements and
procedure prescribed by the Secretary of the Treasury. Depositaries should instruct employers
to execute “Application for Issuance of Replacement Depositary Receipt,” indicating thereon the
date and amount of deposit, employer’s name, address, and identification number, and the serial
number of the validated receipt, and should indicate whether deposit was made with the depositary
for Federal taxes or with the Federal Reserve Bank direct.
16— 60166-1

3

In the event an employer makes inquiry of a depositary with respect to a deposit made with
such depositary, for which he has not received a validated receipt from the Federal Reserve Bank,
the depositary should furnish the required information, stated in the preceding paragraph, to the
Federal Reserve Bank to enable it to investigate the matter.
If a depositary receipt without the employer’s identification number inscribed thereon is pre­
sented to a depositary by an employer when he makes his deposit of Federal taxes, the depositary
should request him to inscribe the identification number in the space provided. In the event the
employer has not been assigned an employer’s identification number, the depositary should never­
theless accept the deposit. If the employer has not made application for an identification number
to the collector for his district, the depositary should request him to do so.
8. Termination of the Qualification of a Depositary for Federal Taxes
The Secretary of the Treasury may terminate at any time the qualification of any depositary
for Federal taxes. Failure upon the part of a depositary to comply with the provisions of this cir­
cular, and any amendments or supplements thereof, or with instructions issued pursuant thereto,
may, in the discretion of the Secretary of the Treasury, constitute grounds for termination of quali­
fication. Likewise, any depositary may terminate its qualification upon formal notice to the Secre­
tary of the Treasury, through the Federal Reserve Bank of its district.
9. Treatment by Collector of Internal Revenue of Validated Depositary Receipts
Deposits of Federal taxes made by employers with depositaries for Federal taxes and Federal
Reserve Banks shall be treated as payment of such taxes to collectors of internal revenue upon the
filing of the employer’s quarterly Federal tax return on Form 941 and the presentation therewith
to such collectors of properly executed and validated Federal Depositary Receipts. Collectors of in­
ternal revenue will deposit all such Federal Depositary Receipts, as Internal Revenue collections,
with the Federal Reserve Bank of the district in which the collector’s head office is located. Each
such deposit shall be accompanied by an appropriate certificate of deposit which shall not include any
other class of remittances.
In any case in which a Federal Depositary Receipt is deposited by a collector of internal revenue
with a Federal Reserve Bank, and it is determined that the employer failed to pay to a depositary or
a Federal Reserve Bank the amount stated thereon, the Federal Reserve Bank may return such item
to the collector of internal revenue, under procedure prescribed by the Secretary of the Treasury.
10. Functions to be Performed by Federal Reserve Banks
The functions to be performed by Federal Reserve Banks, as fiscal agents of the United States,
with respect to Federal taxes applicable to wages paid on or after January 1,1950, will be prescribed
in detailed instructions to such banks. The Federal Reserve Banks will perform such additional
functions relating to the deposit of Federal taxes as may be required from time to time by the Sec­
retary of the Treasury. In general, Federal Reserve Banks w ill:
(A ) Receive directly from employers deposits of Federal taxes, accompanied by inscribed Federal
Depositary Receipts, and establish appropriate accounting control for such deposits. The re­
quirements upon employers with respect to inscribing Federal Depositary Receipts and use o f
the prescribed receipt form, described in Section 6 (A) of this circular, shall be applicable to
tax deposits made directly with Federal Reserve Banks.
(B) Be responsible for the qualification of designated banks as Depositaries for Federal Taxes and
for the general supervision of depositaries’ operations under such qualification.
(C) Receive from depositaries remittances and inscribed depositary receipts, relating to tax deposits
made with depositaries by employers, and establish appropriate accounting control for such tax
deposits.
16— 6016 G-1

4

(D ) Validate depositary receipts, relating to tax deposits made with depositaries, as well as directly
with the Federal Reserve Bank, and return such validated receipts to employers, together with
blank depositary receipt forms for use by the employers in making their next deposit of Federal
taxes.
(E ) Perform the necessary functions to provide for crediting deposits of Federal taxes in Treas­
ury Tax and Loan Accounts of depositary banks, with respect to deposits made directly with
Federal Reserve Banks, as well as those received by depositaries.
(F ) Receive deposits of validated depositary receipts from collectors of internal revenue for appro­
priate credit and clearance in the account of the Treasurer of the United States.
(G) Perform appropriate matching and auditing functions to verify that the tax deposits, repre­
sented by the depositary receipts deposited by collectors of internal revenue, were previously
received by the Federal Reserve Bank from depositaries or directly from employers.
(H) Issue replacement receipts, referred to in Section 7 hereof, for validated depositary receipts
which are lost, stolen or destroyed.
11.

Amendment or Revocation of Regulations

The Secretary of the Treasury may revoke or amend any or all provisions of this circular at any
time or from time to time.
JOHN W. SNYDER,
Secretary of the Treasury.

5

EXHIBIT A

D epartment Circular N o. 848

Page 1
Form No. 469
TR EASU R Y D EPARTM ENT

F iscal Service
B ureau of A ccounts

APPLICATION-AGREEMENT, DEPOSITARY FOR FEDERAL TAXES*
The undersigned, a Designated Depositary and Financial Agent of the Government for receiving
from employers deposits of Federal taxes, as defined in United States Treasury Department Circular
No. 848, dated November 10, 1949, hereby makes application to qualify pursuant to the provisions of
Section 6 of that circular, to receive such deposits and agrees as follows:
1. The undersigned in the performance of its duties as a “ Depositary for Federal Taxes,” as that
term is defined in Section 2 of United States Treasury Department Circular No. 848, dated November
10, 1949, will without compensation for its services comply with all the requirements of that circular
and any amendments or supplements thereof and instructions issued pursuant thereto.
2. The provisions of this agreement may be supplemented, amended or modified a t. any time
subsequent hereto by agreement in writing between the undersigned and the Secretary of the Treas­
ury, as provided in the attached resolution of its board of directors.
I n W it n e ss W hereof , the undersigned has caused the signature of its officer below-named

and its corporate seal duly attested to be affixed hereto this —_______ _______________________ day of
___________________________ , 19____ , intending to be legally bound hereby.

(Name of bank)

[SEAL]

B y ------------------- ----------------------------- --------(Signature and title of officer executing agreement)

A ttest__________ __ _________ -______
(Signature and title)

*The execution o f this Application-Agreement must be authorized by resolution of the Board of Directors o f the designated Depositary, a
certified copy of which on Form 460 must accompany this Application-Agreement.
16— 60166-1

6

EXHIBIT A

D epartment Circular N o. 848

Page 2
Form N o. 460
TREASURY DEPARTMENT
F iscal S ervice
B ureau of A ccounts

RESOLUTION AUTHORIZING EXECUTION OF APPLICATION-AGREEMENT, DEPOSITARY
FOR FEDERAL TAXES

T h is I s

to

Certify , That at a meeting of the Board of Directors of

___ , 19____ , the following resolution was duly adopted:
1. “ R esolved, That* ___

of this bank is hereby authorized to execute on behalf of this bank the ‘Application-Agreement,
Depositary for Federal Taxes/ Treasury Department Form No. 469, such execution to be under seal
and with the attestation of an officer of this bank, other than an officer executing the Agreement.
2. “ R esolved F urth er , That any of such officers of this bank is authorized to execute in similar
form on behalf of this bank such agreements to supplement, amend, or modify the terms of such
‘Application-Agreement, Depositary for Federal Taxes/ as may from time to time be requested or
approved by the Secretary of the Treasury.
3. “ R esolved F urth er , That any of such officers of this bank is hereby authorized to take any
action on behalf of this bank which may be required in connection with the performance of its duties
as a ‘Depositary for Federal Taxes’ as that term is defined in Section 2 of United States Treasury
Department Circular No. 848, dated November 10,1949.”

[SEAL]

(Name and title o f certifying officer**)

‘ Insert title (s) o f authorized officer(s).
♦♦The officer certifying this resolution must have such authority.
16- 60106-1

7

EXHIBIT B

Department Circular N o. 848

FEDERAL DEPOSITARY RECEIPT
(Face)
Employee's 3denti£icai£<m
Number
Should be the 9-digit number
appearing with the employer's
name and address on the face
of the quarterly tax return.

This number will be assigned by Federal
Reserve Bank at time of validation.
Employers should make record of this
number for use in the event of lost, stolen,
or destroyed validated receipts.

Use address
to which receipt
is to be returned
after validation by the
Federal Reserve Bank.

(Reverse)
DO NOT M UTILATE

INSTRUCTIONS

TO

f. Filling out receipt form ; Print in spaces provided on face
of receipt form 'using pen or typewriter (a ) amount of income
tax withheld; (b) amount of faxes, under Federal Insurance Con­
tributions A c t; (c) total taxes; (d) employer's identification
number; and (e) name of employer and address to which this
receipt should be returned following validation by Federal
Reserve Bank. The employer's identification number should be
the nine digit number appearing with the employer's name and
address on the face of the quarterly tax return.

rin

1
0
(0
v
1
ID

2. How to make deposit: Mail filled-out receipt form ,
together, with single remittance covering the total amount of
taxes to the Withheld Tax Department of any parent Federal
Reserve Bank. Remittance should be in the form of check or
money order, payable to the Federal Reserve Bank to which
mailed. Employer may, if he prefers, make deposit with a
commercial bank, which is qualified as a Depositary for
Federal Taxes , instead of with a Federal Reserve Bank.
Employer should deliver filled-out receipt fo rm , together with
remittance, to the depositary. Depositary will forward
receipt'form to the Federal Reserve Bank’ which will validate
and return it direct to employer.
3. When to make deposits: Deposit should be made within
15 days ajfer the- close of each month; however, for the last
month of The calendar quarter, employer may include with his
return a remittance direct to the collector.

8

EMPLOYERS

DO. NOT SPINDLE

’4 . Validation of receipts by Federal Reserve Banks:
Federal Reserve Banks will validate receipts and return
them direct to employers.' Employer should retain validated
receipts until filing quarterly fax return, and enclose
with return (do not staple).-Employer should keep a record
of validated receipts which would enable him to identify
them in the event-of loss.
5. Inquiries and requests for replacement of lost
vaiidated receipts: Inquiries concerning deposits and
requests for issuance of replacement receipts for lost
validated receipts should be directed to the depositary or
Federal Reserve Bank with which the deposit was made. A ll
such inquiries and requests should state date and amount of
deposit, name, address, employer's' identification number, and
serial number of receipt. Inquiries and requests of this
nature should not be made of collectors of internal revenue.
Replacement receipts will be issued by Federal ReserveBank with which deposit was made.
'
6 . Obtaining blank receipt forms for next deposit:
Federal Reserve Banks will forward a blank receipt form
to employer at the time the validated receipt is returned.
Do not exchange blank receipts with other employers, since
identifying information is punched into each receipt.
Employer may secure additional blank receipt fo rm s fro m
Federal Reserve Banks, if required.
‘

16— 6 0166-1

EXHIBIT C

D epartment Circular N o. 848

SUGGESTED FORM OF MEMORANDUM OR COUNTER RECEIPT

(Date)

This Certifies that funds in the amount shown have been received from
the employer named, covering1Federal income tax withheld from wages or
F. I. C. A. taxes or both, to be transmitted or credited to the Federal Reserve
Bank o f ________ ____ ___ _________________ , as Fiscal Agent of the United
States, pursuant to the provisions of Treasury Department Circular No. 848.

$__________________
(Amount)

______________________________________
(Employer’ s name and identification number)

(Name of bank)

(Employee of bank)

FOR MEMORANDUM USE ONLY— DO NOT ATTACH TO YOUR TAX RETURN

_______________________________________________________________________________ ___
16--- 60166-1

9

U. S. GOVERNMENT P R IN TI NG OF FI CE

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