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FEDERAL, RESERVE BANK OF DALLAS
F IS C A L A G E N T O F T H E U N IT E D ST A T E S

D allas, Texas, F eb ru ary 18, 1964

SPECIAL HANDLING OF TAX PAYMENTS

To All Tax and 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 payments of income taxes, will be
effective for the M arch 1964 corporation income tax collections. This arrangement will be applicable
only to the extent of 50% of the amount of checks of $10,000 or more, representing payments of
corporation income taxes.
During the period from M arch 2, 1964, through M arch 31, 1964, (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 paym ents of corporation income taxes, (2 ) Federal Reserve banks will pre­
pare daily a “Special D raft for Credit in Treasury Tax and Loan Account” in an amount not to exceed
50% of the aggregate am ount 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 m ay 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 at the
time of entry by the pledge of adequate collateral.

The Treasury D epartm ent has indicated th at is m ay be necessary to either increase are decrease the
percentage am ount of such checks for credit in the Treasury Tax and Loan Account from tim e to time
during the period in order 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.
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 M arch 23, 1964. 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,
W atrous H. Irons
P resid en t

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