Payment of Income Tax by Money Order

July 29, 1958 BIR RULING NO. 411-58 Mr. Ireneo B. Mendoza c/o Mindanao Agricultural College Musuan, Bukidnon S i r : In reply to your letter dated July 7, 1958, requesting information as to whether or not payment of the income tax by money order bought on May 14, 1958 and mailed on that same day but received in the office of the collecting officer after May 15, 1958 is timely made, I have the honor to inform you in the negative. When a taxpayer pays his tax liability to the Government by money order and thru the mail, he must meet the following requirements in order that his payment could be considered a timely and valid one; (1) The remittance must be deposited in the mail in ample time to reach the tax collector on or before the close of office hours on the last day for the payment of the tax; (2) The mailed money order must reach the hands of the collector in the ordinary course of mail; (3) and that the drawee of the money order must have the necessary funds to meet the face value of the money order when the collector presents it for encashment. Failure on the part of the taxpayer to comply with all these requirements renders the payment either out of time or no valid payment at all. (Manila Electric Co. vs. Collector of Internal Revenue, CTA Case No. 152, November 28, 1946) You are, therefore, liable to the corresponding penalties incident to late payment. cdti Very truly yours, (SGD.) MELECIO R. DOMINGO Acting Commissioner of Internal Revenue