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FEDERAL RESERVE BANK OF DALLAS
F IS C A L A G E N T O F TH E U N IT E D S T A T E S

Dallas, Texas, August 17, 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 September 1960 corporation and individual income tax collections.
This arrangement will be applicable to the extent of the full amount of checks of $10,000
or more, representing payments of corporation and individual income taxes.
During the period from September 1, 1960, through October 5, 1960, (1) Directors of
Internal Revenue will make special deposits with the Federal Reserve banks of checks repre­
senting tax remittances of $10,000 or over covering payments of corporation and individual
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 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 decrease the per­
centage 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 fluctuations 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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