Fed Develops TIP, PATAX Systems to Replace TT&L

Beginning mid-year 2000, two new systems—the Treasury Investment Program (TIP) and PATAX—will replace the current Treasury Tax and Loan (TT&L) system.

Because newly automated business functions have placed additional data requirements on TT&L, centralized processing has become the focus in application development. Developed by the St. Louis Fed, the new TIP and PATAX systems allow for expanded functionality by addressing changes in payment mechanisms, incorporating changes in the data processing environment, and improving data reporting to the Treasury.

During the transition to an all-electronic environment in the mid-1990s, the Treasury implemented the Electronic Federal Tax Payment System (EFTPS), which allowed financial institutions to report their customers' tax payments electronically as an alternative to using federal tax deposit (FTD) coupons. PATAX was designed to process paper-based tax deposits after legislation was passed allowing small businesses to continue using FTDs.

The TIP system will receive summarized tax deposit information from ETA, EFTPS and PATAX. The information will be stored by TIP and used to provide real-time balances and capacity data to the Treasury. This will assist the Treasury in its daily projections of funds needed to maintain its working balance. From these projections, the Treasury will decide whether to invest or withdraw funds from the participating financial institution accounts.

Stay tuned for more detailed information on TIP and PATAX in the coming months.

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