Full text of District Notices (Federal Reserve Bank of Dallas) : Special Handling of Tax Payments

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F E D E R A L R E S E R V E BANK O F DA LLAS
F IS C A L A G E N T O F T H E U N IT E D S T A T E S

Dallas, Texas, August 19, 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 that the procedure customarily in effect during periods
of heavy tax payments, with respect to the special handling of large payments of income taxes, will be
effective for the September 1963 corporation an d individual income tax collections. This arrangement will
be applicable to the full am ount of checks of $10,000 or more, representing payments of corporation and
individual income taxes.
During the period from September 3, 1963, through September 30, 1963, (1 ) Directors of 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 an 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 amount
not to exceed the aggregate amount of such checks drawn on each Special Depositary, and (3 ) in accord­
ance 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. Attention is called to the requirement that deposits in the account be secured
a t the time of entry by the pledge of a d e q u a te collateral.

The Treasury D epartm ent has indicated th at it m ay be necessary to decrease the percentage amount
of such checks for credit in the Treasury Tax and Loan Account from time to tim e 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 Tax and
Loan Accounts. W ithdrawals of balances in Treasury Tax and Loan Accounts will be made as required
by the needs of the Treasury.
Additional copies of this circular will be furnished upon request.

Yours very truly,
Watrous H. Irons
President

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