Acceptance of Check as Payment of Internal Revenue Taxes

December 9, 2020 BANK BULLETIN NO. 19-20 TO : All BIR Authorized Agent Banks SUBJECT : Acceptance of Check as Payment of Internal Revenue Taxes In view of numerous queries received from Authorized Agent Banks (AABs) regarding the acceptance of checks in payment of internal revenue taxes, all AABs are hereby advised on the following: I. Manager's and Cashier's Checks (MCs & CCs) Manager's and Cashier's Checks (MCs & CCs) are acceptable modes of payment under RR No. 16-2002. The MC/CC issuing bank shall indicate on the space for *PAY TO THE ORDER OF* the following data: (1) presenting/collecting bank or the bank where the payment is to be coursed and; (2) FAO (For the account of) Bureau of Internal Revenue as payee; and under the *Account Name* the Taxpayer's Name and Taxpayer Identification Number (TIN). No MC and CC shall be accepted without the Taxpayer's name and TIN indicated therein. II. Checks that are not in accordance with the requirements of the Check Image Clearing System (CICS) of the Philippine Clearing House Corporation (PCHC) are not acceptable for payment of internal revenue taxes. III. Taxpayer's Account Name and Taxpayer Identification Number (TIN) In cases where the Taxpayer's name and TIN are not pre-printed on the face of the check, the AAB shall require the Taxpayer to type or write them legibly on the face/back of the check. IV. The following checks shall not be considered accommodation checks for the purpose of and should be accepted in payment for internal revenue taxes: a) Checks drawn against a joint or multiple account for the purpose of tax payment of the personal tax liability of any of the members thereof provided that the name and TIN of the paying member/s shall be indicated on the back/face of the check; b) Checks drawn against the personal account of the owner of a single proprietorship in payment of the tax liability of his/her business; c) Check drawn against the account of a single proprietorship in payment of the tax liability of the owner provided that the name and TIN of the owner are indicated at the face/back of the check; d) Check issued by either of the spouses to pay their income tax liabilities. V. Personal/company/partnership checks issued by tax/business agents/practitioners in payment of their client/s tax liabilities are accommodation checks and are not acceptable. VI. One check shall be drawn for the payment of a single internal revenue tax liability. This means that if a taxpayer has two or more tax liabilities, say one income and another for percentage tax, separate checks shall be drawn for each kind of tax. However, two or more checks and/or combination of cash and check/s may be accepted in payment of a single internal revenue tax liability. For guidance and compliance. (SGD.) CAESAR R. DULAY Commissioner of Internal Revenue