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FEDERAL RESERVE BANK OF DALLAS
FISC A L. A G E N T O P T H E U N IT E D S T A T E S

Dallas, Texas, M ay 18, 1962

SPECIAL HANDLING OF TAX PAYMENTS

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

T he Treasury D epartm ent has announced th at the procedure custom arily in effect during periods
of heavy tax payments, with respect to the special handling of large paym ents of income taxes, will be
effective for the June 1962 corporation and individual income tax collections. This arrangem ent will be
applicable only to the extent of 50% of the am ount of checks of $1 0 ,0 0 0 or more, representing paym ents
of corporation and individual income taxes.
During the period from June 1, 1962, through June 30, 1962, (1 ) Directors of Internal Revenue
will m ake special deposits with the Federal Reserve banks of checks representing tax rem ittances of
$10,000 or over covering paym ents of corporation a n d individual income taxes, (2 ) Federal Reserve
banks will prepare daily a “Special D raft for Credit in Treasury Tax and Loan Account” in an am ount
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 m ay exercise
their options to accept for deposit in their Treasury Tax and Loan Accounts funds in an am ount equal
to the am ount of the special draft.
The Treasury D epartm ent has indicated th a t it m ay be necessary to either increase or decrease the
percentage am ount of such checks for credit in the Treasury Tax and Loan Account from tim e to tim e
during the period, if such action is required to prevent undue fluctuations in the accountof the Treasurer
of the U nited States with Federal Reserve banks.
No distinction will be m ade between these special credits and other credits to Treasury Tax and
Loan Accounts. W ithdrawals of balances in Treasury T ax and Loan Accounts will be m ade as required
by the needs of the Treasury.
T he Treasury will take steps to deny credit to depositaries for customers* tax checks arising from
sales to the depositaries of customers’ Tax Anticipation Bills m aturing June 22, 1962. As previously
stated, the Treasury does not look with favor upon such transactions, and if it learns th a t 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,
W atrous H. Irons
President

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