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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 I T E D S T A T E S

Dallas, Texas, February 10,1950

T R E A S U R Y T A X A N D LO A N ACCO U NT T R A N SA C TIO N S

To All Banking Institutions in the
Eleventh Federal Reserve D istrict:

In view of the many questions which have arisen in connection with Treasury Tax and
Loan Account transactions and especially the transactions relative to the new plan for
deposit of withheld income and social security taxes which became effective with wages
paid on and after January 1, 1950, there is outlined herein a description of the. account
and transactions involved which arise from the new Federal Tax procedure.
The Treasury Tax and Loan Account is merely a new name, effective January 1, 1950,
for the account which has been known for many years as the War Loan Deposit Account.
War Loan depositaries are automatically qualified as Treasury Tax and Loan depositaries
and are not required to file new applications or resolutions in order to maintain their
deposit accounts. Payments in connection with Series E Savings Bonds sales reports,
applications for United States Savings Bonds of Series F and G, applications for Treasury
Savings Notes, and subscriptions for cash issues of marketable securities when payment
by credit is authorized, may be made by credit to the Treasury Tax and Loan Account of a
depositary in the same manner as payment for such items has been handled heretofore.
The methods by which payments for Federal Tax transmittal letters and deposits of Fed­
eral Taxes directly with this bank by employers may be deposited in the Treasury Tax and
Loan Account are described in the two succeeding paragraphs. Many of the forms now in
use by this bank refer to the account as War Loan Deposit Account. The new name of
the account will be incorporated in the forms as new supplies are printed.
Payment o f Federal Taxes Transmitted by Qualified Depositaries for Federal Taxes.

Banks which have qualified under the new plan as Depositaries for Federal Taxes are per­
mitted to accept from employers deposits of withheld income and social security taxes
accompanied by Federal depositary receipts, Form No. 450, which have been filled in by
the employers. The depositary receipts accepted should be endorsed and dated on the
reverse side and are to be forwarded daily to this bank or appropriate branch. The receipts
should be accompanied by cash remittances in funds which are immediately available at
this bank or the appropriate branch, or in the case of banks which are qualified as Treas­
ury Tax and Loan depositaries, by appropriate advice that funds equaling the amount of
receipts forwarded have been credited to the Treasury Tax and Loan Account of the de­
positary. The transmittal letters furnished by this bank, when appropriately marked in
the space provided, will constitute advice that the funds have been so credited. Complete
information concerning the qualification of banks as Depositaries for Federal Taxes and
the procedure to be followed by the depositaries may be found in Treasury Department
Circular No. 848 which was mailed to all banks, together with this bank’s circular letter
of December 6, 1949.

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

Special Draft for Credit in Treasury Tax and Loan Account. A procedure has been
provided by the Treasury Department whereby qualified Treasury Tax and Loan deposi­
taries also may receive, at their option, deposits in their Treasury Tax and Loan Accounts
equivalent to the amount of checks drawn on them by employers who remit taxes directly
to a Federal Reserve bank instead of to a Depositary for Federal Taxes. Under that pro­
cedure, this bank will prepare daily a Special Draft, Form 453, for Credit in Treasury Tax
and Loan Account for an amount equal to the amount of such checks drawn on each
Treasury Tax and Loan depositary in the district. The draft will be forwarded in duplicate
to reach the depositary simultaneously with the related checks, which will be included in
the regular cash letter from this bank or branch. If the depositary desires to exercise its
option of depositing the amount of the draft in its Treasury Tax and Loan Account, the
original of the draft should be signed, dated, endorsed, and forwarded to this bank or
appropriate branch through regular check collection channels. Member banks or nonmem­
ber clearing banks may forward such drafts in their cash letters to this bank or appro­
priate branch, or if they prefer to a correspondent member bank. Nonmember banks should
forward the drafts through their correspondent bank which are members of the Federal
Reserve System. All such drafts transmitted through a correspondent bank should be
restrictively endorsed by the depositary on the reverse thereof in favor of the correspond­
ent bank. Such correspondent banks should endorse and date the special drafts forwarded
to them and present them through regular check collection channels to this bank or branch
on which the drafts are drawn. It is essential that the drafts be received before expiration
of the number of business days shown on the face of each draft. The duplicate copy of
each draft should be retained by the depositary as evidence of the deposit in its Treasury
Tax and Loan Account. If a Treasury Tax and Loan depositary does not desire to exercise
its option of depositing the amount of the draft in its Treasury Tax and Loan Account,
the draft may be destroyed. Complete information concerning the issue and use of Special
Draft Form 453 is found in paragraphs 18-22 of Treasury Department Circular No. 92,
Revised, dated November 10, 1949.
FEDERAL RESERVE BANK OF DALLAS
Fiscal Agent of the United States