[Code of Federal Regulations] [Title 31, Volume 2] [Revised as of July 1, 2007] From the U.S. Government Printing Office via GPO Access [CITE: 31CFR203.2] [Page 12-14] 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 Subpart A_General Information Sec. 203.2 Definitions. 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. [[Page 13]] (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 Sec. 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 [[Page 14]] 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 Federal Register and on a web site maintained by Treasury's Financial Management Service at http://www.fms.treas.gov. [63 FR 5650, Feb. 3, 1998, as amended at 67 FR 11575, Mar. 15, 2002]