The Treasury Tax and Loan (TT&L) Service enables a financial institution to collect federal tax payments from its customers and retain these funds at a competitive rate of interest.
Two systems, the Treasury Investment Program (TIP) and the Paper Tax System (PATAX), assist in the tax collection and investment process for both financial institutions and the Treasury. Financial Institutions use a web product, TT&L Plus, to access both of these applications.
The Treasury Tax and Loan Service provides three participation options for financial institutions:
A financial institution that participates as a Collector in the TT&L program accepts electronic and/or paper tax payments from its corporate customers and transfers the payments to the Treasury.
A financial institution that participates as a Retainer in the TT&L program accepts tax payments from its corporate customers and may retain the tax deposits in its main account depending on its balance limit, collateral value and account balance. All funds in a Retainer's TT&L account must be fully collateralized, and the Retainer pays the Treasury interest for use of the funds.
A financial institution that participates as an Investor in the TT&L program may retain a portion of the tax deposits received from corporate customers depending on its balance limit and collateral value. An Investors accepts funds from the Treasury via Direct Investments, Dynamic Investments or Special Direct Investments. All investments in an Investor's TT&L account must be fully collateralized, and Investors pay the Treasury interest for use of the funds.
The Electronic Federal Tax Payment System (EFTPS), moves Federal tax payments from paper to electronic methods and is used by most businesses to remit tax payments. The Automated Clearing House (ACH) network is the primary payment mechanism for EFTPS.
To start using this service, visit the TT&L setup page or contact TT&L Treasury Support Center (TSC) at (888) 568-7343.
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