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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 ED S T A T E S

Dallas, Texas, November 17, 1960

SPECIAL H A N D L IN G O F TAX PA Y M EN T S

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 December 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 December 1, 1960, through January 6, 1961, (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 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 fluc­
tuations in the account 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. 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

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


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