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 Rev. Rul. 76-52

1976-1 C.B. 382

Section 6302

IRS Headnote

Corporate income tax deposit; timeliness. A corporate income tax deposit made after 2:00 p.m. on the date it was due, with an authorized commercial bank that as a customer service accepted transactions after its normal 2:00 p.m. closing and recorded them as received the next banking day, was not a timely deposit under section 6302 of the Code.

Full Text

Rev. Rul. 76-52

Advice has been requested concerning the timeliness of a deposit of corporate income tax pursuant to section 6302 of the Internal Revenue Code of 1954, under the circumstances described below.

The corporation is a calendar year taxpayer. On Friday, March 15, 1974, the due date for its corporate income tax, the corporation deposited at 3:00 p.m. its remaining unpaid 1973 income tax liability with an authorized commercial bank. The bank closes its business day at 2:00 p.m., but remains open for several hours after 2:00 p.m. as an expanded customer service. All transactions occurring after 2:00 p.m. are treated by the bank and thus recorded as having occurred on the next succeeding banking day. On the detachable stub of the deposit form, the bank recorded the payment as being received on Monday, March 18, 1974.

Section 6302(a) of the Code provides, in part, that if the mode or time for collecting any tax is not provided for by this title, the Secretary or his delegate may establish the same by regulations. Section 6302(c) provides, in part, that the Secretary or his delegate may authorize banks or trust companies which are depositaries or financial agents of the United States, to receive any tax imposed under the internal revenue laws, in such manner, at such times, and under such conditions as he may prescribe; and he shall prescribe the manner, times, and conditions under which the receipt of such tax by such banks and trust companies is to be treated as payment of such tax to the Secretary or his delegate.

Section 1.6302-1(b) of the Income Tax Regulations provides, in part, that the timeliness of the deposit will be determined by the date of receipt by a Federal Reserve bank or by the authorized commercial bank, whichever is earlier.

Section 214.6(a)(3) of Treasury Department Circular No. 1079 (Regulations Governing The Deposit Of Federal Taxes With Depositary Banks And Federal Reserve Banks (First Revision), 1967) provides, in part, that on the face of each Federal tax deposit form, a stamp impression shall be placed reflecting the date on which the tax deposit was received by the depositary, by reference to which the timeliness of the tax payment will be determined.

Although the Secretary or his delegate could prescribe independent rules concerning the manner, times, and conditions of each tax payment, the regulations and Treasury Department Circular No. 1079 provide that the timeliness of any tax payment is to be determined by the date of receipt recorded on the stub of the deposit form by the authorized bank or trust company accepting the payment. Since the tax payment was deposited after regular banking hours on March 15, 1974 and recorded by the bank on the stub of the deposit form as being received on March 18, 1974, the next succeeding bank day, the tax payment is deemed to be received by the bank on March 18, 1974.

Accordingly, the tax payment was not timely deposited pursuant to section 6302 of the Code.