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FEDERAL. RESERVE BANK OF DALLAS
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

Dallas, Texas, February 19, 1960

SPECIAL HANDLING OF TAX PAYMENTS

To All Banking Institutions and Others Concerned
in the Eleventh Federal Reserve District:

The Treasury Department has announced that the procedure customarily in effect during
periods of heavy tax payments, with respect to the special handling of large payments of income
taxes, will be effective for the March 1960 corporation income tax collections. This arrange­
ment will be applicable only to the extent of 50% of the amount of checks of $10,000 or more,
representing payments of corporation income taxes.
During the period from March 1, 1960, through April 6, 1960, (1) Directors of Internal
Revenue will make special deposits with the Federal Reserve banks of checks representing tax
remittances of $10,000 or over covering payments of corporation income taxes, (2) Federal
Reserve banks will prepare daily a “Special Draft for Credit in Treasury Tax and Loan
Account” in an amount not to exceed 50% of the aggregate amount of such checks drawn on
each Special Depositary, and (3) in accordance with conditions set forth on the face of the
special draft, Special Depositaries may exercise their options to accept for deposit in their
Treasury Tax and Loan Accounts funds in an amount equal to the amount of the special draft.
The Treasury Department has indicated that it may be necessary to either increase or
decrease the percentage amount of such checks for credit in the Treasury Tax and Loan
Account from time to time during the period, if such action is required to prevent undue fluctua­
tions in the amount of the balances in the accounts of the Treasurer of the United States with
Federal Reserve banks.
No distinction will be made between these special credits and other credits to Treasury
Tax and Loan Accounts. Calls for withdrawals of balances in Treasury Tax and Loan Accounts
will be made as required by the needs of the Treasury.
This bank will be pleased to furnish any additional information in this connection that may
be desired.
Yours very truly,
Watrous H. Irons

President

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Bank of Dallas' Historical Library (FedHistory@dal.frb.org)