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F ederal R eserve Bank
OF DALLAS
TO N Y J . SALV A G G IO

DALLAS, TEXAS
7 5 2 6 5 -5 9 06

F IR S T V IC E PR E S ID E N T

December 30, 1994
Notice 94-133

TO:

The Chief Operating Officer of
each financial institution in the
Eleventh Federal Reserve District
SUBJECT
Electronic Federal Tax Payment System
DETAILS

In October you received a notice from this Bank informing you of the efforts
by the Treasury’s Financial Management Service and Internal Revenue Service (IRS) to
modernize the Federal tax deposit system. The effort to convert the current paper-based
tax payment system to electronics began in 1992 with the introduction of the TAXLINK
system. TAXLINK was developed as a prototype to test various system designs that
could be utilized in a nationwide system. The nationwide system, entitled Electronic
Federal Tax Payment System (EFTPS), will become operational in mid- to late 1995.
In July 1994, the IRS issued regulations for mandating the use of electronic
systems to collect Federal tax payments. Beginning January 1, 1995, approximately 800
corporate taxpayers nationwide, who had employment tax deposits of $78 million or
more in 1993, will be required to make their tax payments electronically. These
taxpayers must enroll in the TAXLINK system and may requestassistance from their
depository institution to initiate their payments.Those taxpayers required to begin
reporting January 1, 1995, should have completed their enrollment by November 18,
1994. If any of these corporations or their subsidiaries are your customers, they may be
contacting you regarding the tax payment changes.
Beginning January 1995, taxpayers who had employment tax deposits of $78
million or more in 1993, have three alternatives for initiating electronic payments. Those
alternatives are:
•
•
•

ACH Credit
ACH Debit
Fedwire Funds Transfer

For additional copies, bankers and others are encouraged to use one o f the follow ing toll-free numbers in contacting the Federal
Reserve Bank o f Dallas: Dallas O ffice (800) 333 -4460; E l Paso Branch Intrastate (800) 592-1631, Interstate (800) 351-1012; H ouston
Branch Intrastate (800) 392-4162, Interstate (800) 221-0363; San A ntonio Branch Intrastate (800) 292-5810.

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

For those institutions, two additional options will become available, effective
in April 1995. Those options are:
•
•

Non-Value Fedwire Funds Transfer
Electronic Tax Application
ENCLOSURE

Enclosed is a summary sheet describing the payment options.
MORE INFORMATION
For more information, please contact Nancy Barton, (214) 922-6746, at the
Dallas Office; Dieter Stanchos, (915) 521-8265, at the El Paso Office; Marilyn Salmon,
(713) 652-1521, at the Houston Office; or Mario Garcia, (512) 978-1300, at the San
Antonio Office.
Detailed booklets about EFTPS are being distributed to all TT&L depositar­
ies by each District Federal Reserve Bank. Non-TT&L depositaries who feel they may
be asked by their corporate customers to provide such services may request the detailed
booklets by contacting Janie Worley, (214) 922-6761, at the Dallas Office.
For additional copies of this Bank’s notice, please contact the Public Affairs
Department at (214) 922-5254.
Sincerely,