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FEDERAL RESERVE BANK OF DALLAS
FISCAL AGENT O F THE UNITED STATES

Dallas, Texas, August 18, 1961

SPECIAL H A N D L IN G O F TA X PA Y M EN TS

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 1961 corporation and individual income tax collections. This arrangement will
be applicable only to the extent of 50% of the amount of checks of $10,000 or more, representing pay­
ments of corporation and individual income taxes.
During the period from September 1, 1961, through September 29, 1961, (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 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 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 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 Accoimts. Calls for withdrawals of balances in Treasury Tax and Loan Accounts will 1^ made as
required by the needs of the Treasury.
The Treasury will take steps to deny credit to depositaries for customers’ tax checks arising from
sales to the depositaries of customers’ Tax Anticipation Bills maturing September 22, 1961. As previously
stated, the Treasury does not look with favor upon such transactions, and if it learns that any depositary is
following this practice, credit will be withheld for tax checks which grow out of such transactions.
Additional copies of this circular will be furnished upon request.
Yours very truly.
Watrous H. Irons
President

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