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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 S T A T E S Dallas, Texas, December 2, 1941 To All Banking Institutions in the Eleventh Federal Reserve District: There are enclosed several Tax Savings Plan leaflets prepared by the Treasury Department, covering T ax S avings N otes of Series A and Series B. The purpose of the leaflet is to provide banks and corporations with a brief summary of Treasury Department Circular No. 667, to be used in discussing Tax Savings Notes with depositors. Distribution of the leaflet to the public is not now contemplated. How ever, should your bank desire additional copies to be displayed in tellers’ windows and on counters, they will be gladly furnished upon request. Yours very truly, R. R. GILBERT President This publication was digitized and made available by the Federal Reserve Bank of Dallas' Historical Library (FedHistory@dal.frb.org) NITED STATES TREASURY TAX SAVINGS PLAN I TAX SAVINGS NOTES P R SE. For the national defense, greatly U PO [increased taxes on income are necessary and I r been imposed. A s income is received, the e i - —payer should set aside the amount necessary pay the taxes due the following year. The ,United States Treasury Department, through its Tax Savings Plan, is now providing a con venient means for taxpayers to save for taxes by offering special Treasury Tax Notes which .'nay be purchased by taxpayers from current (income and later used by them in paying their | Federal income taxes. "AX NOTES. Two series are available: Series A, designed to be particularly attractive to the (Small or moderate taxpayers, and Series B, in tended for the larger taxpayers. The notes on sale during 1941 are dated August 1, 1941, aiti will mature August 1, 1943. The succeeding notes, similar except for their dates, on sa fe during 1942, will be dated in January 1942 art will mature in January 1944. PRICE OF NOTES. The notes of both series sold at par and accrued interest from ti..^ date to month of purchase. Credit for accrue! interest included in the purchase price, pin5 further accrual of interest, is given the tax payer when the notes are used to pay taxes. DENOMINATIONS. Series A , $25, $50, $100; Series B, $100, $500, $1,000, $10,000, $100,000.: $500,000, $1,000,000. INTEREST. Accrues on Series A at rate of 16 cents a month per $100, or at a rate o f about 1.92 percent a year; on Series B at 4 cents a month per $100, or at a rate of about 0.48 per cent a year. Interest accrued after purchase is allowed only on notes used for tax p a y m e n ts and will not accrue after the maturity of the notes. TAX PAyMENTS. The notes, inscribed in the name of the taxpayer and nonnegotiable, may be used by the owner, his agent, or his estate, during and after the third month from month of purchase, in payment of Federal income taxes (current and back personal and corpora tion taxes and excess-profits taxes) assessed against his income. The notes are receivable at par and accrued interest from their date to month presented to the Collector of Internal Revenue. AMOUNTS ACCEPTABLE. Not more than $1,200 principal amount and accrued interest thereon, of notes of Series A of any date and maturity, will be accepted on account of a taxpayer’s lia bility for a taxable period, but this limitatjrt’ applies separately (1) to husband and w ife a joint return and (2) to a decedent befl>^ death and to his estate for the balance of the same year. No limitation is placed on the amount of Series B notes acceptable, either alone, or in addition to Series A notes. Tax notes will be received in payment of taxes only in amounts of their denominations plus accrued interest. TAXABILITY. Interest has no exemption from Federal income tax. Interest accrued after purchase should be reported as income for year in which notes were used for tax payment. REDEMPTION. Notes not used for tax-payment purposes may be redeemed, in whole or in part (corresponding to an authorized denomina tion) , at purchase price only, Series A notes at any time without notice; Series B notes after 60 days from date of issue on 30 days’ notice. PURCHASE OF NOTES. Tax notes may be purhased from any Federal Reserve bank or ranch or from the Treasurer of the United States, Washington, D. C. Banks, trust com panies, and savings and loan associations gen erally throughout the United States will secure the notes for their customers, making no charge for this service. FURTHER INFORMATION. Consult any local bank, trust company, or savings and loan asso ciation, or write to the Federal Reserve bank of the district, or to the Secretary of the Treas ury, Washington, D. C. For any special infor mation concerning the acceptance of the tax notes in payment of Federal income taxes, consult the Collector of Internal Revenue. ★ Price o f $ 1 0 0 T r e a s u r y T a x N o t e s , S e r ie s A and B [ p a r an d a ccru ed in te r e s t, d u rin g su c c e ss iv e m o n t h s ; o th e r d en om in a tion s in p r o p o r tio n ] 19 hi [ F o r n o te s d a ted A u g u s t 1 ,1 9 1 .1 ] Series A August---------- --- ______ $100.00 September_______ ______ 100.16 October_______ ........... . 100. 32 November________ ______ 100.48 December _____ _ 100. 64 Series B $100. 00 100. 04 100. 08 100.12 100.16 1912 [ F o r n o te s d a ted in J a n u a r y 1 9 1 2 ] Series A January_______ .________ $ 1 0 0 .0 0 February_______ _______ 1 0 0 .1 6 March........... ......... _______ 1 0 0 .3 2 April_ ______ _______ 1 0 0 .4 8 May________ ____ _ _______ 1 0 0 .6 4 June........................ _______ 1 0 0 .8 0 J u ly .............. ........ _______ 1 0 0 .9 6 August___________.............. 1 0 1 .1 2 September_______ _______ 1 0 1 .2 8 October............ . ._______ 1 0 1 .4 4 November_______ _______ 1 0 1 .6 0 December....... ....... _______ 1 0 1 .7 6 Series B $100. 00 100. 04 100. 08 1 0 0 .1 2 1 0 0 .1 6 100. 20 100. 24 100. 28 1 0 0 .3 2 100. 36 100. 40 100. 44 Application For United States Treasury Tax Notes TAX SERIES A —TAX SERIES B Number of Notes Denomination (Face value) Purchase Price (See previous page) [ W hen completed, m aV if ederal Reserve b a n k , or b r a n c h , o f y o u r"l district, or make application through your bank, trust com pany,! Amount (Total cost) ......... _............ Tax Series A $25 $___ ______ ____ ___ ________ _____ ____ _____ ____ _______ ________ ____ Tax Series A $100 __________________ _ ___ ______ ___ _ ....................... Tax Series B $100 _________ ______ ___ _ ___ __________ _ ________ ____ Tax Series B $500 __________________ _________________ _____________ Tax Series B $1,000 ...... ........ .................. ............ .................. ......................... Tax Series B $10,000 __________________ _______ ____ ____ J $...... ......... ............ ......................... Tax Series A $50 or savings and loan association. T o the Federal Reserve Bank o f _____ ________ Tax Series B $100,000 ________ _______ ___ ............................... . ............... ........... . ......................... Tax Series B $1,000,000 ........................ ........ ...............-........... (Purchaser’s name—type or print plainly) ___ ___ _________ ........................ Tax Series B $500,000 The undersigned hereby applies for United States Treasury Notes of □ Tax Series A □ Tax Series B as indicated on the form to the left. (All remittances should be drawn to the order of the Treasurer of the United States, as payee.) T o t a l A m o u n t o f P u r c h a s e (remittance herewith) $............................ (IM PO R TA N T .— B e sure a n d r e fe r to table on p reviou s p a g e befo re fillin g in P u rch a se P r ic e .) (Signature of purchaser) (Address of purchaser) Notes will be forwarded b y registered mail to address above unless other instructions are given. 16-24503-1 gpo
