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federal Re se r v e b a n k o f Da l l a s F IS C A L A G E N T O F T H E U N IT E D S T A T E S DA LLAS, TEXAS 75222 Circular No* 67-5^ Jferch 13y 1967 To All Banks in the Eleventh Federal Reserve District: There is enclosed Treasury Department Circular No, 1079* which governs the deposit of corporation income taxes with Federal Tax Depositaries now or hereafter qualifiedunder Treasury Department Circular No. 848. The regulations set forth in the new circular do not affect the deposit of employment and excise taxes now being accepted under the depositary receipt system. The types of tax deposits that may be accepted by depositaries have been expanded to include estimated corporation income taxes for tax years ending on and after December 31> 1967, andcorporation income taxes due on or after ftfetrch 15, 1 9 6 8 . As under thepresent depositary receipt system, the new deposit Forms 503 are to be listed ona transmittal letter, Form WT 3> and transmitted to this bank on a daily basis with a remittance in immediately available funds. Remittance may be made by credit to the Treasury Tax and Loan Account or through the reserve ac count of a member bank. Form 503 is a 66-column card form with an attached stub. If the stub is still attached when the form is received by the depositary, it should be stamped and returned to the taxpayer for his record. Theretention of the stub will be important to the taxpayer inasmuch as the Federal Reserve Bank will not validate and return the deposit form to the taxpayer as is the practice under the depositary receipt system. The depositary bank*s stamp on the form must contain its ABA number (without the routing symbol) in addition to the bank*s name and the date payment was received. As the space provided on the form and stub is small (see exhibit in Circular No. 1079)> it would appear that a rubber stampused for this purpose should be limited in size to about one square inch. Because of data processing requirements, the new deposit forms must not be mingled with depositary receipts for employment and excise taxes when preparing them for submission to this bank. In other words, separate transmittal letters and tax and loan advices (or remittances) must be submittedfor (l) new deposit Forms 503 and (2) depositary receipts. Deposit forms, preinscribed with the taxpayer*s name and identification number, are to be furnished to taxpayers only by the Internal Revenue Service* Forms will not be available at this bank or at depositary banks. Yours very truly, Watrous H. Irons President E nclosure ( l ) This publication was digitized and made available by the Federal Reserve Bank of Dallas' Historical Library (FedHistory@dal.frb.org) REGULATIONS GOVERNING THE DEPOSIT WITH DEPOSITARY BANKS AND FEDERAL RESERVE BANKS OF CORPORATION INCOME TAXES UNDER THE INTERNAL REVENUE CODE OF 1954 1967 Department Circular No 0 1079 Treasury Department Office of the Secretary Washington, D e Co Fiscal Service Bureau of Accounts TO FEDERAL RESERVE BANKS, INCORPORATED BANKS AND TRUST COMPANIES, AND OTHERS CONCERNED: The following regulations were published in the Federal Register on March 8, 1967: TITLE 31 - MONEY AND FINANCE: TREASURY CHAPTER II - FISCAL SERVICE, DEPARTMENT OF THE TREASURY SUBCHAPTER A - BUREAU OF ACCOUNTS PART 214 - DEPOSIT WITH FEDERAL RESERVE BANKS AND DEPOSITARIES FOR FEDERAL TAXES OF CORPORATION INCOME TAX UNDER THE INTERNAL REVENUE CODE OF 1954, AS AMENDED (Department Circular No© 1079) Seco 21401 214©2 214*3 214*4 214,5 214©6 Scope of regulations Authorization of Federal Reserve Banks Functions of Federal Reserve Banks Authorization of Depositaries for Federal Taxes Functions of Depositaries for Federal Taxes Federal Tax Deposit Forms Authority: The provisions of this Part 214 issued under sec* 10, 56 Stato 356, as amended; sec„ 15, 38 Stat« 2.65; seco 8 , 40 Stat„ 291, as amended; 12 U.S.G. 2.65, 391; - 2 - 31 U.SoCo 771, arid sec. 6302(c), Internal Revenue Code of 1954, as amended, unless otherwise noted 0 Source: The provisions of this Part 214 appear at 32 F 0Rc 3820, March 8 , 1967, and are contained in Treasury Department Circular No, 1079, dated March 3, 1967« § 214 *1. Scope of regulations The regulations in this part authorize Federal Reserve Banks and Depositaries for Federal Taxes to receive deposits of corporation income tax* The regulations govern the processing of deposits with such Banks and Depositaries of (a) installment payments of estimated corporation income tax pursuant to section 6154 of the Internal Revenue Code of 1954, as amended, made on and after January 1, 1967, and (b) installment and final payments of corporation income tax (other than estimated income tax) pursuant to section 6152 of that Code, as amended, made on and after January 1, 1968, for tax years ending on and after December 31, 1967« Such tax is hereafter referred to as corporation income tax, § 21402 Authorization of Federal Reserve Banks The Federal Reserve Banks, as fiscal agents of the United States, are hereby authorized and directed, subject to the provisions of this part, to receive from corporations or their agents, deposits of corporation income tax® § 214o3 Functions of Federal Reserve Banks (a) The Federal Reserve Banks shall perform the follow ing functions with respect to deposits of corporation income tax: lo The Banks shall receive directly from corporations, or their agents, remittances in the form of check or money order, drawn to the order of the Bank, covering the amount to be deposited as corporation income tax, accompanied by a pre inscribed Form 503^' - Federal Tax Deposit, 1 Form 503 attached to Department Circular 1079, dated March 3 , .1967, filed as part of original document,, - 3 - Corporation Income Taxes, on which the amount of the deposit has been entered in the space pro vided «, 2 0 The Banks shall stamp, in the space pro vided on the face of each tax deposit form re ceived directly from corporations, the date the tax deposit was received, and the name and iden tifying number of the Bank0 3® The Banks shall receive from Depositaries for Federal Taxes, under cover of transmittal letters, remittances or advices of credits to Treasury Tax and Loan Accounts and tax deposit forms relating to deposits of corporation income tax made with such Depositaries0 4* The Banks shall establish accounting control over remittances received directly from corporations, as well as remittances and advices of credit received from Depositaries, and process related entries in the accotint of the Treasurer of the United States. 5„ The Banks shall establish accounting control over tax deposit forms, process the forms, and transmit them to the Office of the Treasurer of the United States0 § 214.4 Authorization of Depositaries for Federal Taxes Every incorporated bank and trust company, now or here after designated and qualified to act as a Depositary for Federal Taxes under Part 213 of this subchapter (Treasury Department Circular No. 848, Second Revision, dated May 2, 1958) , is hereby authorized and directed to accept from corporations or their agents, subject to the provisions of this part and without compensation for its services, de posits of corporation income tax© To the extent provided in section 2.14,5(a)(6) , such tax deposits are eligible for - 4 - deposit in a Depositary*s Tax and Loan Account, maintained under its qualification as a Special Depositary of public moneys pursuant to Part 203 of this subchapter (Treasury Department Circular No. 92,(Revised), dated November 10, 1949, as amendedo § 214o5 Functions of Depositaries for Federal Taxes (a) Depositaries for Federal Taxes shall perform the following functions with respect to deposits of corporation income tax: 1* Depositaries shall accept directly from corporations or their agents, cash or checks, drawn on and to the order of the Depositary, covering the amount to be deposited as corporation income taxc Each deposit must be accompanied by a pre-inscribed Form 503 - Federal Tax Deposit, Corporation Income Taxes,^ on which the amount Of the deposit has been entered in the space provided,, 2. Depositaries are not required to accept from corporations checks drawn on other banks, but they may do so at their own risk 0 If such checks are accepted, Depositaries must, nevertheless, stamp the date each deposit was received on the tax deposit form, and transmit the forms, together with payment therefor, to the Federal Reserve Bank of their district at the close of business on the day the deposits were received, in accordance with requirements stated in paragraph 6 « 3 0 Depositaries shall not accept public debt securities of the United States as deposits of corporation income tax 0 4 0 Depositaries shall, upon request by a corporation, acknowledge receipt of deposits,. This may be accomplished by placing their stamp impression in the space provided on the stub portion of the tax deposit form, detaching the stub, and returning it to the taxpayer0 - 5 - 5 0 Depositaries shall place, in the space provided on the face of each tax deposit form, a stamp impression reflecting (i) the date on which the tax deposit was received by the Depositary or its branch; (ii) the name and location of the Depositary; and (iii.) the Depositary1s transit number or identifying number assigned by the Federal Reserve Bank. The timeliness of the deposit will be determined by the date of receipt shown by the stamped impression© 6 . Depositaries shall forward daily to the Federal Reserve Bank of their district all tax deposit forms received that day from taxpayers, together with payment in funds immediately avail able at the Federal Reserve Bank point, or with advice that funds have been credited in the Treasury Tax and Loan Account of the Depositary. Deposi taries shall detach any stubs, which were left attached to the deposit forms by taxpayers, before forwarding the deposit forms to the Federal Reserve Banko Each transmittal will be accompanied by a transmittal letter in the form prescribed by the Federal Reserve Bank of the district0 7 0 Depositaries shall establish, prior to transmittal to the Federal Reserve Bank, an ade quate record of all deposits of corporation income tax, so that a Depositary will be able to identify deposits in the event tax deposit forms are lost in shipment between it and the Federal Reserve Banko For this purpose a record should be made of each deposit, showing the date of deposit, the corpora tions employer identification number, and the amount of the tax deposit® The Depositary1s copy of transmittal letters may be used to provide the necessary information if individual deposits are listed separately, showing employerfs identifcation number, deposit date, and related amounts for each deposito (b) The Federal Reserve Banks will furnish Depositaries with further information„ - 6 - §. 214o6 Federal Tax Deposit Forms Each deposit of corporation income tax shall be accom panied by a Form 503 - Federal Tax Deposit, Corporation Income Taxes® The Bureau of Accounts, Treasury Department, on the basis of data furnished by the Internal Revenue Service, will so far as possible furnish to corporations a supply of tax deposit forms sufficient to meet their normal needs for the current year, approximately one month prior to the due date of their first deposit0 However, a cor poration wil3 not be excused from making a deposit by the fact that no Form 503 has been furnished. Accordingly, if a corporation required to make such deposits has not re ceived Form 503 tax deposit forms, it should communicate with the District Director of Internal Revenue for the district in which the corporation files its return (or director of the Internal Revenue Service Center for its region)® Likewise, if additional tax deposit forms are needed, the corporation should request such additional supplies from the District Director or Service Center, furnishing its name, identification number, address and the ending date of its taxable year, as shown on the corpora tion^ tax return® iscal Assistant Secretary Dated: March 3, 1967 EXHIBIT D E P A R T M E N T A L C I R C U L A R NO. 1079 FEDERAL TAX DEPOSIT CORPORATION INCOME TAXES (Form 5 0 3 ) FACE AMOUNT O f DEPOSIT DOLLARS TAXABLE YEAR ENDING 012 DEC CENTS (M P lO V frS iDiNTiriCATION HO. 5 2 —4 - 5 6 7 8 9 0 1967 503 FEDERAL TAX DEPOSIT FORM CORPORATION INCOME TAXES SERIAL NO. TAXPAYER'S NAME AND ADDRESS T HE N A T I O N A L C O R P O R A T I O N 1960*1 B A L T I MOR E BLVD. B A L T I M O R E , MD. 2 1 2 0 2 DEPARTMENT U.S. TREASURY 52-»l567890 FHJERAl TAX D B O S ir CORPORATION INCOME TAXES 012 TAXABLE YEAR ENDING DEC 1967 CHECK N O _________________ S ee G e n er a l In s t r u c t io n s on DATE_______________________ £ Reverse NOTICE TO TAXPAYER 1. VERIFY PREPRINTED DATA; IF INCORRECT, SEE INSTRUCTION NO. 5 O N REVERSE. 2 . ENTER AMOUNT OF DEPOSIT IN SPACES PRO VIDED O N BODY OF FORM AND STUB. 3 . ENTER CHECK OR MONEY-ORDER NUMBER AND DATE O N STUB. DETACH AND RETAIN STUB FOR YOUR RECORD. r tANK N A M t/O A T E -i L J REVERSE DO N OT STAPLE INSTRUCTIONS TO TAXPAYER BEFORE M AKING DEPOSIT—Verify preinscrib ed d a t a on th e f a c e of this form ; if incorrect, see instruction N o. 5. C o m p lete d e p o sit form a n d stub in a c c o rd a n c e with instruc tions on fac e of form . This form is for use in m aking a d e p o sit o f c o rp o ra tio n incom e tax e s (including e stim a te d co rp o ra tio n incom e tax es) a n d should not b e used fo r a n y o th e r class of tax e s. HOW TO MAKE DEPOSIT— Mail o r d eliver co m p le te d form , to g e th e r with check o r m oney o r d e r fo r a m o u n t o f t a x d e p o sit, to a n y com m ercial b a n k q u a lifie d a s a De p o s ita ry fo r F e d e ra l Taxes, o r mail to W ith h eld Tax De p a rtm e n t of a Federal Reserve Bank o r th e D etroit Branch o f th e Fe d e ra l Reserve Bank of C h ic a g o . R em ittance should b e m a d e p a y a b le to com m ercial b a n k d e p o s ita ry o r Federal Reserve Bank to which you m ail o r deliver your t a x dep o sit. Serial n um b er on f a c e of form should b e w ritten on y our rem ittan ce to referen ce it to r e la te d ta x dep o sit form. W HEN TO MAKE DEPOSITS— (a) Deposits of e s tim a te d c o rp o ra tio n incom e ta x shall b e m a d e in a c c o rd a n c e with th e tim e schedule set fo rth o n Form 1120-ES— D eclaratio n D O N O T MUTILATE of Estim ated Incom e Tax for C o rp o ra tio n s, (b) Deposits o f c o rp o ra tio n incom e t a x (final o r installm ent p ay m en ts) o th er th a n e s tim a te d c o rp o ra tio n incom e ta x shall be m a d e in a c c o rd a n c e with d u e d a te s set fo rth in th e In structions fo r Form 1 1 2 0 — U. 5. C o r p o r a tio n Incom e Tax Return. Timeliness o f dep o sits will b e d e te rm in e d b y d a te received b y com m ercial b a n k d e p o s ita ry o r F e d e ra l Re serve Bank. *. TAXPAYER'S RECORD OF ~ DEPOSIT— Before m ailing d e p o s it form , d e ta c h stub p o rtio n a n d reta in it fo r y o ur r ec o rd . The d e p o s it p o rtio n o f this fo rm will n o t b e re tu rn e d to you, b u t will serve a s a b a sis fo r cred itin g y o u r t a x a c c o u n t id entified b y th e Em ployer's Identification N u m b er o n th e f a c e o f form . 5. CORRECTING PREINSCRIBED DA TA— If E m p lo y er's Identification N u m b e r, a d d re s s , o r T a x a b le Year Ending d a te is incorrect, th e n ece ssa ry co rrection s should b e m a d e on th e f a c e o f th e d e p o s it form b e fo r e m dking y o u r d e p o sit in th e r e g u la r m an n e r. The District Director of Internal Revenue fo r y our district should also b e a d v ise d of th ese c h a n g e s by s e p a r a t e letter. r n L J A
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