31 C.F.R. Subpart A—General Information
Title 31 - Money and Finance: Treasury
The regulations in this part govern the processing of Federal tax payments by financial institutions and the Federal Reserve Banks (FRB) using electronic payment or paper methods; the designation of Treasury Tax and Loan (TT&L) depositaries; and the operation of the Department of the Treasury's (Treasury) investment program. As used in this part: (a) Advice of credit means the Treasury form used in the Federal Tax Deposit system that is supplied to depositaries to summarize and report Federal tax deposits. The current form is Treasury Form 2284. Advice of credit information also may be delivered electronically. (b) Automated Clearing House (ACH) credit entry means a transaction originated by a financial institution in accordance with applicable ACH formats and applicable laws, regulations, and procedural instructions. (c) Automated Clearing House (ACH) debit entry means a transaction originated by a Treasury Financial Agent (TFA), in accordance with applicable ACH formats and applicable laws, regulations, and instructions. (d) Business day means any day on which the FRB of the district is open. (e) Direct Access transaction means same-day Federal tax payment information transmitted by a financial institution directly to the Electronic Tax Application at an FRB using the Fedline Taxpayer Deposit Application. (f) Direct investment means placement of Treasury funds with a depositary and a corresponding increase in a depositary's note balance. (g) Direct investment means placement of Treasury funds with a depositary and a corresponding increase in a depositary's main note balance. (h) Electronic Tax Application (ETA) means a sub-system of EFTPS that receives, processes, and transmits same-day Federal tax payment information for taxpayers. ETA activity is comprised of Fedwire value transfers, Fedwire non-value transactions, and Direct Access transactions. (i) Electronic Tax Application (ETA) reference number means the unique number assigned to each ETA transaction by an FRB. (j) Federal funds rate means the Federal funds rate published weekly by the Board of Governors of the Federal Reserve System. (k) Federal Reserve account means an account with reserve or clearing balances held by a financial institution at an FRB. (l) Federal Reserve Bank of the district means the FRB that services the geographical area in which the financial institution is located, or such other FRB that may be designated in an FRB operating circular. (m) Federal Tax Deposit (FTD) means a tax deposit or payment made using an FTD coupon. (n) Federal Tax Deposit coupon (FTD coupon) means a paper form supplied to a taxpayer by the Treasury for use in the FTD system to accompany deposits of Federal taxes. The current paper form is Form 8109. (o) Federal Tax Deposit system (FTD system) means the paper-based system through which taxpayers remit Federal tax payments by presenting an FTD coupon and payment to a depositary or an FRB. The depositary prepares an advice of credit summarizing all FTDs. (p) Federal taxes means those Federal taxes or other payments specified by the Secretary of the Treasury as eligible for payment through the procedures prescribed in this part. (q) Fedwire means the funds transfer system owned and operated by the FRBs. (r) Fedwire non-value transaction means the same-day Federal tax payment information transmitted by a financial institution to an FRB using a Fedwire type 1090 message to authorize a payment. (s) Fedwire value transfer means a Federal tax payment made by a financial institution using a Fedwire type 1000 message. (t) Financial institution means any bank, savings bank, savings and loan association, credit union, or similar institution. (u) Fiscal Agent means the Federal Reserve acting as agent for the Treasury. (v) Input Message Accountability Data (IMAD) means a unique number assigned to each Fedwire transaction by the financial institution sending the transaction to an FRB. (w) Main note balance means an open-ended interest-bearing note balance maintained at the FRB of the district. (x) Note option means that program available to a TT&L depositary under which Treasury invests in obligations of the depositary. The amount of such investments will be evidenced by interest-bearing note balances maintained at the FRB of the district. (y) Procedural instructions means the procedures contained in the Treasury Financial Manual, Volume IV (IV TFM), other Treasury instructions issued through the TFAs, and FRB operating circulars issued consistent with this part. (z) Recognized insurance coverage means the insurance provided by the Federal Deposit Insurance Corporation, the National Credit Union Administration, and by insurance organizations specifically qualified by the Secretary. (aa) Remittance option means that program available to a depositary that processes FTD payments, under which the amount of deposits credited by the depositary to the TT&L account will be withdrawn by the FRB for deposit to the Treasury General Account on the day that the FRB receives the advices of credit supporting such deposits. (bb) Same-day payment means the following ETA payment options: (1) Direct Access transaction; (2) Fedwire non-value transaction; and (3) Fedwire value transfer. (cc) Secretary means the Secretary of the Treasury, or the Secretary's delegate. (dd) Special direct investment means the placement of Treasury funds with a depositary and a corresponding increase in a depositary's main note balance, where the investment specifically is identified as a “special direct investment” and may be secured by collateral retained in the possession of the depositary pursuant to the terms of §203.24(c)(2)(i). (ee) Tax due date means the day on which a tax payment is due to Treasury, as determined by statute and Internal Revenue Service (IRS) regulations. (ff) Term investment option means the program available to financial institutions that offers the ability to borrow excess Treasury operating funds for a predetermined period of time. (gg) Term note balance means an interest-bearing note balance maintained at the FRB of the district for a predetermined period of time. (hh) Transaction trace number means an identifying number assigned by the taxpayer's financial institution to each ACH credit transaction. (ii) Treasury Financial Agent (TFA) means a financial institution designated as an agent of Treasury for processing EFTPS enrollments, receiving EFTPS tax payment information, and originating ACH debit entries on behalf of Treasury as authorized by the taxpayer. (jj) Treasury General Account (TGA) means an account maintained in the name of the United States Treasury at an FRB. (kk) Treasury Tax and Loan (TT&L) account means the Treasury account maintained by a depositary in which funds are credited by the depositary after receiving and collateralizing FTDs. (ll) Treasury Tax and Loan depositary (depositary) means a financial institution designated as a depositary by the FRB of the district for the purpose of maintaining a TT&L account and/or note balance. (mm) Treasury Tax and Loan (TT&L) Program means the program for collecting Federal taxes and investing the Government's excess operating funds. (nn) Treasury Tax and Loan (TT&L) rate of interest means the interest charged on the main note balance. The TT&L rate of interest is the rate prescribed by the Secretary taking into consideration prevailing market interest rates. The rate and any rate changes will be announced through a TT&L Special Notice to Depositaries and will be published in the [63 FR 5650, Feb. 3, 1998, as amended at 67 FR 11575, Mar. 15, 2002] (a) To be designated as a TT&L depositary, a financial institution shall be insured as a national banking association, state bank, savings bank, savings and loan, building and loan, homestead association, Federal home loan bank, credit union, trust company, or a U.S. branch of a foreign banking corporation, the establishment of which has been approved by the Comptroller of the Currency. (b) A financial institution shall possess the authority to pledge collateral to secure TT&L account balances and/or a note balance. (c) In order to be designated as a TT&L depositary for the purposes of processing tax deposits in the FTD system, a financial institution shall possess under its charter either general or specific authority permitting the maintenance of the TT&L account, the balance of which is payable on demand without previous notice of intended withdrawal. In addition, note option depositaries shall possess either general or specific authority permitting the maintenance of a note balance. In the case of note option depositaries maintaining main note balances, the authority shall permit the maintenance of a main note balance which is payable on demand without previous notice of intended withdrawal. [63 FR 5650, Feb. 3, 1998, as amended at 67 FR 11576, Mar. 15, 2002] (a) Parties to the agreement. To be designated as a TT&L depositary, a financial institution shall enter into a depositary agreement with Treasury's fiscal agent, the FRB. By entering into this agreement, the financial institution agrees to be bound by this part, and procedural instructions issued pursuant to this part. (b)(1) Application procedures. An eligible financial institution seeking designation as a depositary and, thereby, the authority to maintain a TT&L account and/or a note balance shall file with the FRB, Financial Management Service Form 458, “Financial Institution Agreement and Application for Designation as a TT&L Depositary,” and Financial Management Service Form 459, “Resolution Authorizing the Financial Institution Agreement and Application for Designation as a TT&L Depositary,” certified by its board of directors. Financial Management Service Forms 458 and 459 are available upon request from the FRB of the district. (2) Depositaries processing tax payments in the FTD system are required to elect either the remittance or the note option. (c) Designation. Each financial institution satisfying the eligibility requirements and the application procedures will receive from the FRB notification of its specific designation as a TT&L depositary. A financial institution is not authorized to maintain a TT&L account or note balance until it has been designated as a TT&L depositary by the FRB. A depositary shall: (a) Administer a note balance, if not participating in the FTD System. (b) Administer a TT&L account and, if applicable, a note balance, if participating in the FTD System. (c) Comply with the requirements of Section 202 of Executive Order 11246, entitled “Equal Employment Opportunity” (3 CFR, 1964–1965 Comp. p. 339) as amended by Executive Orders 11375 and 12086 (3 CFR, 1966–1970 Comp., p. 684; 3 CFR, 1978 Comp. p. 230), and the regulations issued thereunder at 41 CFR Chapter 60. (d) Comply with the requirements of Section 503 of the Rehabilitation Act of 1973, as amended, and the regulations issued thereunder at 41 CFR part 60–741, requiring Federal contractors to take affirmative action to employ and advance in employment qualified individuals with disabilities. (e) Comply with the requirements of Section 503 of the Vietnam Era Veterans' Readjustment Assistance Act of 1972, as amended, 38 U.S.C. 4212, Executive Order 11701 (3 CFR 1971–1975 Comp. p. 752), and the regulations issued thereunder at 41 CFR parts 60–250 and 61–250, requiring Federal contractors to take affirmative action to employ and advance in employment qualified special disabled veterans and Vietnam-era veterans. Except as provided in the procedural instructions, Treasury will not compensate financial institutions for servicing and maintaining the TT&L account, or for processing tax payments through the EFTPS or the FTD system. (a) Termination by Treasury. The Secretary may terminate the agreement of a depositary at any time upon notice to that effect to that depositary, effective on the date set forth in the notice. (b) Termination or change of election or option by the depositary. A depositary may terminate its depositary agreement, or change its option or election, consistent with this part and the procedural instructions, by submitting notice to that effect in writing to the FRB effective at a prospective date set forth in the notice. The terms of this part and procedural instructions issued pursuant to this part shall be binding on financial institutions that process tax payments and/or maintain a note balance under this part. By accepting or originating Federal tax payments, the financial institution agrees to be bound by this part and by procedural instructions issued pursuant to this part.
Title 31: Money and Finance: Treasury
PART 203—PAYMENT OF FEDERAL TAXES AND THE TREASURY TAX AND LOAN PROGRAM
Subpart A—General Information
§ 203.1 Scope.
§ 203.2 Definitions.
§ 203.3 Financial institution eligibility for designation as a Treasury Tax and Loan depositary.
§ 203.4 Designation of financial institutions as Treasury Tax and Loan depositaries.
§ 203.5 Obligations of the depositary.
§ 203.6 Compensation for services.
§ 203.7 Termination of agreement or change of election or option.
§ 203.8 Application of part and procedural instructions.
