[Code of Federal Regulations]
[Title 31, Volume 2]
[Revised as of July 1, 2002]
From the U.S. Government Printing Office via GPO Access
[CITE: 31CFR203.13]

[Page 16-17]
 
                  TITLE 31--MONEY AND FINANCE: TREASURY
 
         CHAPTER II--FISCAL SERVICE, DEPARTMENT OF THE TREASURY
 
PART 203--PAYMENT OF FEDERAL TAXES AND THE TREASURY TAX AND LOAN PROGRAM--Table of Contents
 
               Subpart B--Electronic Federal Tax Payments
 
Sec. 203.13  Same-day reporting and payment mechanisms.

    (a) General. A financial institution or its authorized correspondent 
may initiate same-day reporting and payment transactions on behalf of 
taxpayers. A same-day payment must be received by the FRB of the 
district by the deadline established by the Treasury in the procedural 
instructions. Taxpayers will be credited for the actual amount received 
by Treasury.
    (b) Fedwire value transfer. To initiate a Fedwire value tax payment, 
the financial institution shall be a Fedwire participant and shall 
comply with the FRB's Fedwire format for tax payments. The taxpayer's 
financial institution shall provide the taxpayer, upon request, the IMAD 
and the ETA reference numbers for a Fedwire value transfer. The 
financial institution may obtain the ETA reference number for Fedwire 
value transfers from its FRB

[[Page 17]]

by supplying the related IMAD number. Fedwire value transfers settle 
immediately to the TGA and thus are not credited to a depositary's main 
note balance.
    (c) Fedwire non-value transaction. By initiating a Fedwire non-value 
transaction, a financial institution authorizes the FRB of the district 
to debit its Federal Reserve account or, for a TT&L depositary, to debit 
the Federal Reserve account of the depositary or its designated 
correspondent financial institution, for the amount of the tax payment 
specified in the transaction. To initiate a Fedwire non-value 
transaction, the financial institution shall be a Fedwire participant 
and shall comply with the FRB's Fedwire format for tax payments. The 
taxpayer's financial institution shall provide the taxpayer, upon 
request, the IMAD and ETA reference numbers for the Fedwire non-value 
transaction. The financial institution may obtain the ETA reference 
number for Fedwire non-value transactions from its FRB by supplying the 
related IMAD number.
    (1) For a note option depositary using a Fedwire non-value 
transaction, the tax payment amount will be credited to the depositary's 
main note balance on the day of the transaction.
    (2) For a remittance option depositary using a Fedwire non-value 
transaction, the tax payment amount will be debited from the Federal 
Reserve account of the depositary or the depositary's designated 
correspondent and credited to the TGA on the day of the transaction.
    (3) For a non-TT&L depositary financial institution using a Fedwire 
non-value transaction, the tax payment amount will be debited from the 
financial institution's Federal Reserve account and credited to the TGA 
on the day of the transaction.
    (d) Direct Access transaction. By initiating a Direct Access 
transaction, a financial institution authorizes the FRB of the district 
to debit its Federal Reserve account or, for a TT&L depositary, to debit 
the Federal Reserve account of the depositary or its designated 
correspondent financial institution for the amount of the tax payment 
specified in the transaction. The taxpayer's financial institution shall 
provide the taxpayer, upon request, the ETA reference number for the 
Direct Access transaction.
    (1) For a note option depositary using a Direct Access transaction, 
the tax payment amount will be credited to the depositary's main note 
balance on the day of the transaction.
    (2) For a remittance option depositary or a non-TT&L depositary 
financial institution using a Direct Access transaction, the tax payment 
amount will be debited from the Federal Reserve account of the financial 
institution or its designated correspondent financial institution, and 
credited to the TGA on the day of the transaction.
    (e) Cancellations and reversals. In addition to cancellations due to 
insufficient funds in the financial institution's Federal Reserve 
account, the FRB may reverse a same-day transaction:
    (1) If the transaction:
    (i) Is originated by a financial institution after the deadline 
established by the Treasury in the procedural instructions;
    (ii) Has an unenrolled taxpayer identification number; or
    (iii) Does not meet the edit and format requirements set forth in 
the procedural instructions; or,
    (2) At the direction of the IRS, for the following reasons:
    (i) Incorrect taxpayer name;
    (ii) Overpayment; or
    (iii) Unidentified payment; or,
    (3) At the request of the financial institution that sent the same-
day transaction, if the request is made prior to the deadline 
established by Treasury in the procedural instructions on the day the 
payment was made.
    (f) Other than as stated in paragraph (e) of this section, Treasury 
is not obligated to reverse all or any part of a payment.

[63 FR 5650, Feb. 3, 1998, as amended at 67 FR 11576, Mar. 15, 2002]