View original document

The full text on this page is automatically extracted from the file linked above and may contain errors and inconsistencies.

F E D E R A L R E S E R V E BANK O F DALLAS
F IS C A L A G E N T O P T H E U N IT E D ST A T E S

Dallas, Texas, May 17, 1963

SPECIAL HANDLING OF TAX PAYMENTS

To All Treasury Tax a n d Loan Depositaries
in the Eleventh Federal Reserve District:

The Treasury D epartm ent has announced th at the procedure customarily 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 1963 corporation an d individual income tax collections. This arrangement will be
applicable only to the extent of 50% of the am ount of checks of $10,000 or more, representing payments
of corporation an d individual income taxes.
During the period from June 1, 1963, through June 28, 1963, (1 ) Directors of Internal Revenue will
make special deposits with the Federal Reserve banks of checks representing tax rem ittances of $10,000
or over covering payments 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 drafts, Special Depositaries may exercise their options
to accept for deposit in their Treasury Tax and Loan Accounts funds in amounts equal to the amounts
of the special drafts.
The Treasury D epartm ent has indicated th at it m ay 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 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 T ax and
Loan Accounts. W ithdrawals of balances in Treasury Tax and Loan Accounts will be 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 m aturing June 24, 1963. As previously
stated, the Treasury does not look with favor upon such transactions, and if it learns th at 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

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