[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: 31CFR309.5]

[Page 160-161]
 
                  TITLE 31--MONEY AND FINANCE: TREASURY
 
         CHAPTER II--FISCAL SERVICE, DEPARTMENT OF THE TREASURY
 
PART 309--ISSUE AND SALE OF TREASURY BILLS--Table of Contents
 
Sec. 309.5  Acceptance of Treasury bills for various purposes.

    (a) Acceptable as security for public deposits. Treasury bills will 
be acceptable at maturity value to secure deposits of public monies.

[[Page 161]]

    (b) Acceptable in payment of taxes. The Secretary of the Treasury, 
in his discretion, when inviting tenders for Treasury bills, may provide 
that Treasury bills of any series will be acceptable at maturity value, 
whether at or before maturity, under such rules and regulations as he 
shall prescribe or approve, in payment of income taxes payable under the 
provisions of the Internal Revenue Code. Treasury bills which by the 
terms of their issue are acceptable in payment of income taxes may be 
surrendered to any Federal Reserve Bank or Branch, acting as fiscal 
agent of the United States, or to the Bureau of the Public Debt, 
Washington, DC 20226, 15 days or less before the date on which the taxes 
become due.
    (1) In the case of payments of corporation income taxes (including 
payments of estimates) for taxable years ending on or after December 31, 
1967, the bills shall be accompanied by a preinscribed Form 503, Federal 
Tax Deposit, Corporation Income Taxes, on which the face amount of the 
bills being surrendered should be entered in the space provided for the 
amount of the tax deposit. The office receiving the bills and Form 503 
will acknowledge receipt of the bills to the owner corporation and 
effect the tax deposit on the date on which the taxes become due. 
Accordingly, in these cases, it will no longer be necessary to submit 
receipts for Treasury bills to the Internal Revenue Service with the 
corporation's declaration or tax return.
    (2) In the case of payments of all other income taxes the office 
receiving the bills will issue receipts (in duplicate) to the owners. 
The original of the receipt shall be submitted, by the owner, in lieu of 
the bills, together with the tax return, to the District Director, 
Internal Revenue Service.
    (c) Discounting by Federal Reserve Bank of notes secured by Treasury 
bills. Notes securied by Treasury bills are eligible for discount or 
rediscount at Federal Reserve Banks as provided under the provisions of 
section 13 of the Federal Reserve Act, as are notes securied by bonds 
and notes of the United States.
    (d) Acceptable in connection with foreign obligations held by United 
States. Treasury bills will be acceptable at maturity, but not before, 
in payment of interest or of principal on account of obligations of 
foreign governments held by the United States.