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FEDERAL RESERVE BANK OF NEW YORK Fiscal Agent of the United States ELECTRONIC FEDERAL TAX PAYMENT SYSTEM (Information for TT&L Depositaries) T o th e S e n i o r O p e r a t i o n s O f f i c e r o f e a c h T T & L D e p o s i t a r y in th e S e c o n d F e d e r a l R e s e r v e D i s t r i c t : In m id O c to b e r y o u s h o u ld h a v e r e c e iv e d a n o tic e fro m th is B a n k in fo r m in g y o u o f th e e ffo r ts b y th e T r e a su r y ’s F in a n c ia l M a n a g e m e n t S e r v ic e an d In tern al R e v e n u e S e r v ic e to m o d e r n iz e th e F ed era l T a x D e p o s it s y s te m . ( S e e c ir c u la r letter, d a ted O c to b e r 2 4 , 1 9 9 4 ). T h e e ffo r t to c o n v e r t th e cu rren t p a p e r -b a se d ta x p a y m e n t s y s te m to e le c tr o n ic s b e g a n in 1 9 9 2 w ith th e in tr o d u c tio n o f th e T A X L I N K s y s te m . T A X L I N K w a s d e v e lo p e d a s a p r o to ty p e to te s t v a r io u s s y s te m d e s ig n s th at c o u ld b e u tiliz e d in a n a tio n w id e s y s te m . T h e n a tio n w id e s y s te m , e n title d E le c tr o n ic F e d e r a l T a x P a y m e n t S y s te m (E F T P S ), w ill b e c o m e o p e r a tio n a l in m id to la te 1 9 9 5 . In J u ly 1 9 9 4 , th e IR S is s u e d r e g u la tio n s fo r m a n d a tin g th e u s e o f e le c tr o n ic s y s t e m s to c o lle c t F ed era l ta x p a y m e n ts . B e g in n in g Jan u ary 1, 1 9 9 5 , a p p r o x im a te ly 8 0 0 c o r p o r a te ta x p a y e r s n a tio n w id e , w h o had e m p lo y m e n t ta x d e p o s its o f $ 7 8 m illio n o r m o r e in 1 9 9 3 , w ill b e req u ired to m a k e th e ir ta x p a y m e n ts e le c tr o n ic a lly . T h e s e ta x p a y e r s m u st e n r o ll in th e T A X L I N K s y s te m and m a y r e q u e st a s s is ta n c e fro m th e ir d e p o s ito r y in stitu tio n to in itia te th e ir p a y m e n ts. T h o s e ta x p a y e r s r eq u ired to b e g in rep o r tin g Ja n u a ry 1, 1 9 9 5 , w e r e to h a v e c o m p le te d e n r o llm e n t b y N o v e m b e r 18, 1 9 9 4 . If any o f th o s e c o r p o r a tio n s or th e ir s u b s id ia r ie s are c u s to m e r s o f y o u r s, y o u m a y b e h e a r in g o r h a v e a lrea d y heard from th e m . C u r r e n tly , ta x p a y e r s h a v e th ree a lte r n a tiv e s fo r in itia tin g e le c tr o n ic p a y m e n ts: o A C H C red it o A C H D e b it o F e d w ir e F u n d s T ra n sfer In A p r il 1 9 9 5 , t w o a d d itio n a l o p tio n s w ill b e c o m e a v a ila b le fo r y o u to s u b m it ta x p a y m e n t in fo r m a tio n fo r y o u r c u sto m e r s: o N o n - V a lu e F e d w ir e F u n d s T ra n sfer o E le c tr o n ic T a x A p p lic a tio n (Over) A su m m a r y s h e e t d e s c r ib in g t h e s e p a y m e n t o p tio n s is e n c lo s e d a lo n g w ith a d e ta ile d b o o k le t about E F T P S. S in c e E F T P S m a y h a v e im p lic a tio n s fo r n u m e r o u s o p e r a tio n a l a rea s in y o u r in s titu tio n ( e .g ., A u to m a te d C le a r in g h o u s e , F u n d s T ra n sfer, T r e a su r y T a x an d L o a n an d C a sh M a n a g e m e n t, a s w e l l a s a u to m a tio n a rea s th a t su p p o r t F e d lin e an d c o m p u te r in te r fa c e c o n n e c tio n s to th e F e d e r a l R e s e r v e ), w e e n c o u r a g e y o u r c l o s e r e v ie w o f th e e n c lo s e d d o c u m e n ta tio n an d a p p ro p ria te d istr ib u tio n to a ffe c te d o p e r a tio n a l a rea s w ith in y o u r o r g a n iz a tio n . I f y o u h a v e q u e s tio n s , p le a s e refer to th e c o n ta c t lis tin g in S e c tio n V II o f th e E F T P S d o c u m e n t. R ic h a r d J. G e l so n , Vice President. Electronic Tax Payment Methods Available April 1 , 19954 N on-V alue F e d w ire M u s t be e n ro lle d w ith TFA. M u s t be e n ro lle d w ith TFA. F or m a n d a te d ta x p a y e rs on ly. F or m a n d a te d ta x p a y e rs o n ly. Transaction Initiated by Dl in itia te s at ta x p a y e r’s re q u e st. D l in itia te s at ta x p a y e r’s re q u e s t. Transaction Deadline Dl to send tra n s a c tio n by 2 :0 0 p .m . lo ca l Dl to se n d tra n s a c tio n by 2 :0 0 p .m . lo cal Taxpayer Eligibility Required Information Acceptance Penalty Record of Transaction Interface with TT&L Program/ Funds Settlement3 FRB (Head O ffice ) zone tim e on ta x due FRB (H ead O ffic e ) zon e tim e on ta x due date. date. Tax in fo rm a tio n to be re p o rte d in F o rm a tte d s c re e n s p ro v id e d . th e OBI fie ld .5 M e ssa g e s c o n ta in in g in v a lid da ta m a y be M e ssa g e s c o n ta in in g in v a lid d a ta m a y be re tu rn e d to D l. re tu rn e d to D l. T axpa yers m a y be a sse sse d p e n a lty by IRS T a xp a ye rs m a y be a sse s s e d p e n a lty by IRS f o r late p a ym e n ts. f o r late p a y m e n ts . Dl to p ro v id e ta x p a y e r w ith w ire re fe re n ce Federal R e serve to p ro v id e tra n s a c tio n n u m b e rs . re fe re n ce n u m b e r to D l. A p ril 1 , 1 9 9 5 Additional alternatives to those indicated on the reverse side. 5Non-Value format to use typecode 1090 format with new “ IRS” product code; format to replicate typecode 1000 tax messages. AT-I01V8 E le c tro n ic Tax A p p lic a tio n A p ril 1 , 1 9 9 5 Contacts Depository Institutions wanting additional information on TAXUNK or EFTPS should contact the Treasury Financial Management Service: Elizabeth Oldenburg Ron Rosenblum Walt Henderson Grace Testoff Chris Kubeluis Mike Mackay 202-874-6878 202-874-6835 202-874-7454 202-874-6747 202-874-6873 202-874-6892 Electronic Tax Payment Methods1 Currently Available V a lu e F e d w ire 2 Taxpayer Eligibility Transaction Initiated by Transaction Deadline ACH C redit ACH D eb it M u s t be e n ro lle d w ith TFA. M u s t be e n ro lle d w ith TFA. Dl in itia te s at ta x p a y e r’s req ue st. TFA in itia te s at ta x p a y e r’s re q u e s t. D l to sen d tra n s a c tio n by 2 :0 0 p .m . lo ca l Dl to se n d tra n s a c tio n to FRB ACH T a x p a y e r to d e liv e r tra n s a c tio n in fo r m a FRB (H ead O ffic e ) zo n e tim e on ta x due O p e ra to r by 1 :3 0 a .m . ET on ta x du e date. M u s t be e n ro lle d w ith TFA (T re a s u ry F in a n cia l A g e n t). F or m a n d a te d ta x p a y e rs o n ly. Dl ( D e p o s ito ry In s titu tio n ) in itia te s at ta x p a y e r’s re q u e st. tio n to TFA by 8 :0 0 p .m . ET on da y p r io r to ta x du e d a te. Dl re c e iv e s file b y 6 :0 0 date. a .m . ET o n ta x d u e d a te. Required Information Tax in fo rm a tio n to be re p o rte d in Tax in fo rm a tio n to be re p o rte d in th e CCD+ T a x p a y e r in fo r m a tio n to be in c lu d e d th e OBI fie ld . a d d e n d u m re c o rd in th e TXP b a n k in g c o n in d e ta il re c o rd f o r D l use in p o s tin g . v e n tio n . Acceptance Penalty Record of Transaction Interface with TT&L Program/ Funds Settlement3 M e ssa g e s c o n ta in in g in v a lid d a ta m a y be M e ssa g e s c o n ta in in g in v a lid data m a y be M e s s a g e s c o n ta in in g in v a lid d a ta m a y be re tu rn e d to D l. re tu rn e d to D l. re tu rn e d to ta x p a y e r. T a xp a ye rs m a y be a sse sse d p e n a lty by IRS T a xp a ye rs m a y be asse sse d p e n a lty by IRS T a x p a y e rs m a y be a s s e s s e d p e n a lty b y IRS f o r late p a y m e n ts . f o r late p a y m e n ts . f o r la te p a y m e n ts . Dl to p ro v id e ta x p a y e r w ith w ire re fe re n ce Dl to p ro v id e ta x p a y e r w ith p a y m e n t TFA to p ro v id e ta x p a y e r w ith tra n s a c tio n n u m b e r. re fe re n ce on c u s to m e r sta te m e n t. a c k n o w le d g e m e n t n u m b e r. No in te rfa c e a v a ila b le . F u n d s s e ttle M id to late 1 9 9 5 . im m e d ia te ly . ab le , fu n d s s e ttle at 8 :3 0 a.m . ET. ’Methods and procedures subject to change. 2To be phased out following availability of alternatives (see reverse side). 3Any funds processed through TT&L settle at end of day. U n til T T & L in te rfa c e a v a il M id to late 1 9 9 5 . U n til T T & L in te rfa c e a v a il a b le , fu n d s s e ttle a t 1 1 :3 0 a .m . ET. FEDERAL RESERVE BANK OF NEW YORK Fiscal Agent of the United States D e c e m b e r 14, 1 9 9 4 ELECTRONIC FEDERAL TAX PAYMENT SYSTEM (Information for Non-TT&L Depositaries) T o th e S e n i o r O p e r a t i o n s O f f i c e r o f e a c h N o n - T T & L D e p o s i t a r y in th e S e c o n d F e d e r a l R e s e r v e D i s t r i c t : In m id O c to b e r y o u sh o u ld h a v e r e c e iv e d a n o tic e fro m th is B a n k in fo r m in g y o u o f th e e ffo r ts b y th e T r e a su r y ’s F in a n c ia l M a n a g e m e n t S e r v ic e an d In tern al R e v e n u e S e r v ic e to m o d e r n iz e th e F e d e r a l T a x D e p o s it s y s te m . ( S e e c ir c u la r letter, d a ted O c to b e r 2 4 , 1 9 9 4 ). T h e e ffo r t to c o n v e r t th e cu rren t p a p e r -b a se d ta x p a y m e n t s y s te m to e le c tr o n ic s b e g a n in 1 9 9 2 w ith th e in tr o d u c tio n o f th e T A X L I N K s y s te m . T A X L I N K w a s d e v e lo p e d a s a p r o to ty p e to te s t v a r io u s s y s te m d e s ig n s th a t c o u ld b e u tiliz e d in a n a tio n w id e s y s te m . T h e n a tio n w id e s y s te m , e n title d E le c tr o n ic F e d e r a l T a x P a y m e n t S y s te m (E F T P S ), w ill b e c o m e o p e r a tio n a l in m id to la te 1 9 9 5 . In J u ly 1 9 9 4 , th e IR S is s u e d r e g u la tio n s fo r m a n d a tin g th e u s e o f e le c tr o n ic s y s t e m s to c o lle c t F e d e r a l ta x p a y m e n ts . B e g in n in g Jan u ary 1, 1 9 9 5 , a p p r o x im a te ly 8 0 0 c o r p o r a te ta x p a y e r s n a tio n w id e , w h o h ad e m p lo y m e n t ta x d e p o s its o f $ 7 8 m illio n o r m o r e in 1 9 9 3 , w ill b e req u ir e d to m a k e th e ir ta x p a y m e n ts e le c t r o n ic a lly . T h e s e ta x p a y e r s m u st e n r o ll in th e T A X L I N K s y s te m an d m a y r e q u e st a s s is t a n c e fr o m th e ir d e p o s ito r y in stitu tio n to in itia te th e ir p a y m e n ts . T h o s e ta x p a y e r s r eq u ired to b e g in r e p o r tin g J a n u a ry 1, 1 9 9 5 , w e r e to h a v e c o m p le te d e n r o llm e n t b y N o v e m b e r 1 8 , 1 9 9 4 . I f any o f t h o s e c o r p o r a tio n s o r th e ir s u b s id ia r ie s are c u s to m e r s o f y o u r s , y o u m a y b e h e a r in g o r h a v e a lrea d y h eard fro m th e m . C u r r e n tly , ta x p a y e r s h a v e th r e e a lte r n a tiv e s fo r in itia tin g e le c tr o n ic p a y m e n ts: o A C H C r e d it o A C H D e b it o F e d w ir e F u n d s T ra n sfer In A p r il 1 9 9 5 , t w o a d d itio n a l o p tio n s w ill b e c o m e a v a ila b le fo r y o u to s u b m it ta x p a y m e n t in fo r m a tio n fo r y o u r c u sto m e r s: o N o n - V a lu e F e d w ir e F u n d s T ra n sfer o E le c tr o n ic T a x A p p lic a tio n (Over) A su m m a r y s h e e t d e s c r ib in g th e s e p a y m e n t o p tio n s is e n c lo s e d . is a ls o a v a ila b le . A d e ta ile d E F T P S d o c u m e n t I f y o u f e e l y o u m a y b e a sk e d b y y o u r co r p o r a te c u s to m e r s to p r o v id e su c h s e r v ic e s a n d y o u w o u ld lik e to r e c e iv e a c o p y o f th e d e ta ile d d o c u m e n t, p le a s e c o n ta c t th e T r e a su r y T a x an d L o a n S e c t io n o f th e F e d e r a l R e s e r v e B a n k o f N e w Y o r k at ( 2 1 2 ) 7 2 0 - 6 6 2 3 . R ic h a r d J. G e l so n , Vice President. Electronic Tax Payment Methods Available April 1 , 19954 N on -V alu e F e d w ire Taxpayer Eligibility Transaction Initiated by Transaction Deadline Required Information Acceptance Penalty Record of Transaction Interface with TT&L Program/ Funds Settlement3 M u s t be e n ro lle d w ith TFA. M u s t be e n ro lle d w ith TFA. F or m a n d a te d ta x p a y e rs o n ly. F or m a n d a te d ta x p a y e rs on ly. Dl in itia te s a t ta x p a y e r’s re q u e st. Dl in itia te s at ta x p a y e r’s re q u e s t. Dl to se n d tra n s a c tio n by 2 :0 0 p .m . lo ca l Dl to se n d tra n s a c tio n by 2 :0 0 p.m . local FRB (Plead O ffice ) zo n e tim e on ta x due FRB (Plead O ffic e ) zon e tim e on tax due date. date. Tax in fo rm a tio n to be re p o rte d in F o rm a tte d s c re e n s p ro v id e d . th e OBI fie ld .5 M e ssa g e s c o n ta in in g in v a lid da ta m a y be M e s s a g e s c o n ta in in g in v a lid d a ta m a y be re tu rn e d to D l. re tu rn e d to D l. T a xp a ye rs m a y be asse sse d p e n a lty by IRS T a xp a ye rs m a y be a sse sse d p e n a lty by IRS fo r late p a y m e n ts . f o r late p a y m e n ts . Dl to p ro v id e ta x p a y e r w ith w ire re fe re n ce Federal R e serve to p ro v id e tra n s a c tio n n u m b e rs . re fe re n c e n u m b e r to D l. A p ril 1 , 1 9 9 5 Additional alternatives to those indicated on the reverse side. 5Non-Value format to use typecode 1090 format with new “ IRS” product code; format to replicate typecode 1000 tax messages. n ~r j \ E le c tro n ic Tax A p p lica tio n A p ril 1 , 1 9 9 5 Contacts Depository Institutions wanting additional information on TAXLINK or EFTPS should contact the Treasury Financial Management Service: Elizabeth Oldenburg Ron Rosenblum Walt Henderson Grace Testoff Chris Kubeluis Mike Mackay 202-874-6878 202-874-6835 202-874-7454 202-874-6747 202-874-6873 202-874-6892 Electronic Tax Payment Methods1 Currently Available ACH C red it V a lu e F ed w ire2 M u s t be e n ro lle d w ith TFA. M u s t be e n ro lle d w ith TFA. Dl in itia te s at ta x p a y e r’s re q u e s t. TFA in itia te s at ta x p a y e r’s re q u e s t. Dl to sen d tra n s a c tio n by 2 :0 0 p .m . lo cal Dl to se n d tra n s a c tio n to FRB ACH T a x p a y e r to d e liv e r tra n s a c tio n in fo rm a FRB (H ead O ffice ) zone tim e on ta x due O p e ra to r by 1 :3 0 a.m . ET on ta x du e date. tio n to TFA by 8 :0 0 p .m . ET on d a y p rio r M u s t be e n ro lle d w ith TFA (T re a su ry Taxpayer Eligibility Transaction Initiated by Transaction Deadline ACH D eb it F in a n cia l A g e n t). For m a n d a te d ta x p a y e rs only. D l ( D e p o s ito ry In s titu tio n ) in itia te s at ta x p a y e r’s re q u e st. to ta x du e date. D l re c e iv e s file by 6 :0 0 da te. a .m . ET o n ta x du e date. Required Information Tax in fo rm a tio n to be re p o rte d in Tax in fo rm a tio n to be re p o rte d in th e CCD+ T a x p a y e r in fo rm a tio n to be in c lu d e d th e OBI fie ld . a d d e n d u m re c o rd in th e TX P b a n k in g c o n in d e ta il re c o rd f o r Dl use in p o s tin g . v e n tio n . Acceptance M e ssa g e s c o n ta in in g in v a lid data m a y be M e ss a g e s c o n ta in in g in v a lid da ta m a y be M e s s a g e s c o n ta in in g in v a lid d a ta m a y be re tu rn e d to Dl. re tu rn e d to D l. re tu rn e d to ta xp a ye r. T a xp a ye rs m a y be a sse ssed p e n a lty by IRS T a xp a ye rs m a y be a sse s s e d p e n a lty by IRS T a xp a ye rs m a y be a s s e s s e d p e n a lty by IRS Penalty f o r la te p a y m e n ts . f o r late p a y m e n ts . f o r late p a y m e n ts . D l to p ro v id e ta x p a y e r w ith w ire re fe re n ce Dl to p ro v id e ta x p a y e r w ith p a y m e n t TFA to p ro v id e ta x p a y e r w ith tra n s a c tio n Record of Transaction n u m b e r. re fe re n ce on c u s to m e r s ta te m e n t. a c k n o w le d g e m e n t n u m b e r. N o in te rfa c e ava ila b le . F und s se ttle M id to late 1 9 9 5 . Interface with TT&L Program/ Funds Settlement3 im m e d ia te ly . able, fu n d s s e ttle at 8 :3 0 a .m . ET. 'Methods and procedures subject to change. 2To be phased out following availability of alternatives (see reverse side). 3Any funds processed through TT&L settle at end of day. U n til T T & L in te rfa c e a v a il M id to late 1 9 9 5 . U n til T T & L in te rfa c e a v a il able, fu n d s s e ttle at 1 1 :3 0 a .m . ET.
@FedFRASER