Penalty for Failure to file W-3 and W-2a Forms on Time

September 4, 1958 BIR RULING NO. 498-58 The Regional Director BIR Regional Office No. 3 Manila S i r : This refers to the case of the Office of Economic Coordination, CEPOC Bldg., Dasmarias, Manila, involving the sum of forty pesos (P40.00) as penalty for failure to file on time Forms W-3, W-2a and the alphabetical list of employees for the year 1955. It appears from the records of this case that the abovementioned Office failed to file its Forms W-3, W-2a and the alphabetical list of employees for the year 1955 on or before January 31, 1956, as required under Section 19 of Revenue Regulations No. V-8, as amended, in relation to Article 6(b) of Supplement A to Title II of the Tax Code. The Deputy Administrator of the Office of Economic Coordination in his 5th Indorsement dated December 5, 1956 explained that the delay was not deliberate but was due to several changes in the personnel of the said Office. The cashier and the bookkeeper of said Office were transferred elsewhere and their successors were not familiar with the withholding tax requirements. The new bookkeeper believed that the official receipt attesting to the payment of the taxes withheld is required to be attached to the forms. He therefore, waited for the receipt before filing Forms W-2a and W-3 and the alphabetical list of employees with the Bureau of Internal Revenue. As a result, the said forms and alphabetical list of employees were filed with the BIR only on February 23, 1956 or 23 days after the deadline which is January 31. The pertinent provisions of Republic Act 590 reads as follows: Article 8(a), Title II: "Any person who . . . , willfully fails to render or furnish a statement as required in this Supplement shall upon conviction, for each such act or omission, be fined not less than one thousand pesos nor more than two thousand pesos and imprisoned for not more than one year." Under the abovequoted provision of law, only willful or deliberate failure to render or furnish the required statement is penalized. Where there is a sincere desire to comply with the provisions of the law where the delay was due mainly to changes in the personnel of a public office which is common nowadays, such delay is not penalized under the abovequoted provision of law. In view of the foregoing, this Office is of the opinion that the Office of Economic Coordination is not liable for the payment of the sum of P40.00 as penalty for late filing of the abovementioned forms and alphabetical list of employees. aisadc Please be guided accordingly. Very truly yours, (SGD.) MELECIO R. DOMINGO Acting Commissioner of Internal Revenue