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FEDERAL RESERVE BANK OF NEW YORK Fiscal Agent of the United States r Circular N o. 5 2 9 0 ~1 January 24, 1963 J L Taxpayer Identifying Numbers Required on Applications for Series H Savings Bonds Beginning February 1, 1963 To the Principal Executive Officers o f Banks and Other Financial Institutions in the Second Federal Eeserve D istrict: The Treasury Department has asked us to transmit to you the circular letter of the Fiscal Assistant Secretary printed 011 the reverse side of this circular. W e ask your cooperation in bringing to the attention of your customers the requirement, discussed in the letter, that, 011 and after February 1, 1963, applications for the purchase of Series H savings bonds must bear either the Social Security account number or Employer Identification number of the applicant. In addition, the Treasury has advised us that the provisions of the letter apply also to reissue and exchange applications for Series II bonds and reissue applications for Series Iv bonds. In our Circular No. 5277, dated December 28, 1962, we indicated that Series H bonds registered in the name of an individual as fiduciary should carry the fidu cia ry’s Social Security number, whereas such bonds registered in the name of a corporate fiduciary should carry the fiduciary’s Employer Identification number. W e have now been informed by the Treasury Department that in the case of an indi vidual fiduciary either the Social Security number or the Employer Identification number may be used. Additional copies of this circular will be furnished upon request addressed to our Savings Bond Department. A lfred H ayes, President. 9. ( over ) T R E A S U R Y DE PA R TM E N T F IS C A L S E R V IC E W A S H I N G T O N 25, D .C . January 21, 1963 To the Principal Executive Officers o f Banks and Other Financial Institutions: Public Law No. 87-397, approved October 5, 1961, requires recipients of dividends, interest, or other payments to furnish taxpayer iden tifyin g numbers to payers required to report such payments to the Internal Revenue Service but does not in terms apply to interest payments made on obligations of the United States issued by the Treasury Department. Congress, however, expected that in this matter the Treasury would place itself on the same plane as other obligors, insofar as feasible. One of the steps now being taken within the Treasury Department to accomplish that objective is to obtain identifying numbers (social security account numbers or employer identification numbers) from current recipients o f interest payments on Series H and K Savings Bonds and marketable Treasury bonds and notes in registered form. The next step requires that taxpayer identifying numbers be shown in applications for Series II Savings Bonds and on the bonds issued thereunder. It is, therefore, requested that such numbers be shown in H bond applications which you process hereafter. I f an applicant does not have a number but is will ing to obtain one prom ptly, you may process his application and transmit it to the Federal Reserve Bank or Branch to which you custom arily send such applications. The application should contain a notation or be accompanied by a statement advising that the applicant is taking steps to obtain a number. The nota tion or statement need not be signed or initialed. Payment should be made for the bonds to be issued against such incomplete applications, in order that the Federal Reserve Bank or Branch concerned may date the bonds as of the first day o f the month in which the applications and payment therefor are received by them. A pplications lacking taxpayer identifying numbers will be retained in suspense by the Federal Reserve Banks and Branches for a period not exceeding eight weeks from their receipt by them. A pplications for which numbers have not been received from your institution or the applicant b y the end o f such period will be returned and the payments therefor refunded. I f any of the applicants concerned in such cases subsequently furnish you with numbers, the applications should be reprocessed as new business. Beginning February 1, 1963, the Federal Reserve Banks and Branches will reject those II bond applications which do not record the taxpayer identifying numbers, unless they contain the notation or are accompanied by the statement referred to in the third paragraph hereof. Therefore, applications fall ing in such category, which you cannot process in time to be received by the Banks and Branches before February 1, 1963, should not be submitted. In such cases, the applicants refusing to supply numbers should be courteously inform ed that numbers are being required o f all payers of dividends and interest within the framework of the law referred to above, in order to make possible the use of automatic data processing equipment to improve and strengthen tax administration. Because many names are alike and addresses change frequently, numbers, in addition to names, are required to readily identify taxpayer accounts and to give high speed service. Y ou r cooperation in effectively bringing this new requirement to the attention o f you r customers will be greatly appreciated by the Treasury. J o h n K. C a r l o c k Fiscal Assistant Secretary P.S. On the H bond applications referred to herein, the taxpayer identification numbers should be furnished for the owner in the case o f bonds to be registered in single ownership form and the first-named coowner in bonds to be registered in coownership form .
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