31 C.F.R. Subpart C—Federal Tax Deposits
Title 31 - Money and Finance: Treasury
This subpart applies to all depositaries that accept FTD coupons and governs the acceptance and processing of those coupons. (a) FTD coupons. A depositary that accepts FTD coupons, through any of its offices that accept demand and/or savings deposits, shall: (1) Accept from a taxpayer, cash, a postal money order drawn to the order of the depositary, or a check or draft drawn on and to the order of the depositary, covering an amount to be deposited as Federal taxes when accompanied by an FTD coupon on which the amount of the deposit has been properly entered in the space provided. A depositary may accept, at its discretion, a check drawn on another financial institution, but it does so at its option and absorbs for its own account any float and other costs involved. (2) Issue a counter receipt when requested to do so by a taxpayer that makes an FTD deposit over the counter. (3) Place a stamp impression on the face of each FTD coupon in the space provided. The stamp shall reflect the date on which the tax deposit was received and the name and location of the depositary. The timeliness of the tax payment will be determined by reference to the date stamped by the depositary on the FTD coupon. (4) Credit, on the date of receipt, all FTD deposits to the TT&L account and administer that account pursuant to the provisions of this part. (5) Forward, each day, to the IRS Center servicing the geographical area in which the depositary is located, the FTD coupons for all FTD deposits received that day. The FTD coupons shall be accompanied by an advice of credit reflecting the total amount of all FTD coupons. (6) Establish an adequate record of all FTD deposits prior to transmittal to the IRS Center so that the depositary will be able to identify deposits in the event tax deposit coupons are lost in shipment. For tracking purposes, a record shall be made of each FTD deposit showing, at a minimum, the date of deposit, the taxpayer identification number, and the amount of the deposit. The depositary's copy of the advice of credit may be used to provide the necessary information if individual deposits are listed separately, showing date, taxpayer identification number, and amount. (7) Deliver its advices of credit to the FRB by the cutoff hour designated by the FRB for receipt of advices. (8) Not accept compensation from taxpayers for accepting FTDs and handling them as required by this section. (b) FTD deposits with Federal Reserve Banks. An FRB shall: (1) Accept an FTD directly from a taxpayer when such tax deposit is: (i) Mailed or delivered by a taxpayer; and (ii) Provided in the form of cash or a check or postal money order payable to the order of that FRB; and, (iii) Accompanied by an FTD coupon on which the amount of the tax deposit has been properly entered in the space provided. (2) Issue a counter receipt, when requested to do so by a taxpayer that makes an FTD over the counter; and, (3) Place, in the space provided on the face of each FTD coupon accepted directly from a taxpayer, a stamp impression reflecting the name of the FRB and the date on which the tax deposit will be credited to the TGA. Timeliness of the Federal tax payment will be determined by this date. However, if a deposit is mailed to an FRB, it shall be subject to the “Timely mailing treated as timely filing and paying” clause of the Internal Revenue Code, 26 U.S.C. 7502; and, (4) Credit the TGA with the amount of the tax payment; (i) On the date the payment is received, if payment is made in cash; or, (ii) On the date the proceeds of the tax payment are collected, if payment is made by postal money order or check. (a) Late delivery of advices of credit. If an advice of credit does not arrive at the FRB before the designated cutoff hour for receipt of such advices, the FRB will post the funds to the main note balance as of the next business day after the date on the advice of credit. This is the date on which funds will begin to earn interest for Treasury. (b) Transfer of funds from TT&L account to the main note balance. For a depositary selecting the note option, funds equivalent to the amount of deposits credited by a depositary to the TT&L account shall be withdrawn by the depositary and credited to the main note balance on the business day following the receipt of the tax payment. [67 FR 11576, Mar. 15, 2002] (a) FTD late fee. If an advice of credit does not arrive at the FRB before the designated cutoff hour for receipt of such advices, an FTD late fee in the form of interest at the TT&L rate will be assessed for each day's delay in receipt of such advice. Upon the direction of Treasury, the FRB shall debit the Federal Reserve account of the financial institution or the account of its designated correspondent financial institution for the amount of the late fee. (b) Withdrawals. For a depositary selecting the Remittance Option, the amount of deposits credited by a depositary to the TT&L account will be withdrawn upon receipt by the FRB of the advices of credit. The FRB will charge the depositary's Federal Reserve account or the account of the depositary's designated correspondent financial institution.
Title 31: Money and Finance: Treasury
PART 203—PAYMENT OF FEDERAL TAXES AND THE TREASURY TAX AND LOAN PROGRAM
Subpart C—Federal Tax Deposits
§ 203.17 Scope of the subpart.
§ 203.18 Tax deposits using Federal Tax Deposit coupons.
§ 203.19 Note option.
§ 203.20 Remittance option.
