ITR of a Farmer

February 3, 1960 BIR RULING NO. 055-60 Mrs. Emilia G. Ponce de Leon Cuyo, Palawan M a d a m : In reply to your letter dated December 29, 1959, I have the honor to inform you that a farmer who derives his income from farming and whose gross quarterly sales, earnings, or output do not exceed P5,000.00 must accompany his income tax return with the yearly statements of net worth and operations. Should his gross quarterly sales, earnings or output exceed P5,000.00 but does not exceed P25,000.00, he must accompany his return with a simple balance sheet and profit and loss statement. If his gross quarterly sales, earnings, receipts or output exceed P25,000.00, his books of accounts should be audited and examined by an independent certified public accountant and his return should be accompanied by a certified balance sheet and comparative profit and loss statements, schedules listing income-producing properties and the corresponding incomes therefrom and other relevant statements. (Revenue Regulations V-1 and Section 334, Tax Code). Very truly yours, MELECIO R. DOMINGO Commissioner of Internal Revenue