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