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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)
