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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 ITED ST A T E S

Dallas, Texas, February 18, 1959

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 corpora­
tion income taxes, will be effective for the March 1959 tax collections. This arrangement will be
applicable only to the extent of 50% of the amount of tax payments of $10,000 or over.
During the period from March 1, 1959 through April 3, 1959, ( 1 ) Directors o f 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 de­
crease 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.
N o 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

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


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