Prescribed Form in the Submission of List of Accounts Receivable/Delinquent Accounts Arising from Undisputed Assessment to the Information Systems Group for Uploading Into the Accounts Receivable Management System

February 27, 2013 OPERATIONS MEMORANDUM NO. 001-13 TO : ACIR, Large Taxpayers Service ACIR, Information System Development and Operation Service All Regional Directors All Revenue District Officers All Chiefs, Regional Assessment Divisions All Chiefs, Regional Collection Divisions Chief, Systems Development Division All Section Chiefs, Receivable Accounts and Collection Enforcement Sections, Regional Collection Divisions All Others Concerned SUBJECT : Prescribed Form in the Submission of List of Accounts Receivable/Delinquent Accounts Arising from Undisputed Assessment to the Information Systems Group for Uploading Into the Accounts Receivable Management System The Accounts Receivable Management System (ARMS) is a system of accounting and tracking Account Receivable/Delinquent Account (AR/DA) dockets from the date of their creation up to their closure. The system also provides modules for the generations of correspondences such as the Preliminary Collection Letter (PCL), Final Notice Before Seizure (FNBS), Tax Clearance and other correspondences, including generation of reports pertaining to AR/DA management, and the management of approved installment settlement. With this system, status and whereabouts of the AR/DA docket at any given time can be verified, provided, that timely updating has been done by the Case Officer handling the AR/DA. AR/DA may either arise from self-assessed tax such as unpaid second installment, unpaid tax due per return, and dishonored check or from the issuance of a final assessment notice as a result of audit or based on third-party information that was not protested by the taxpayer within the prescribed 30-day period. For AR/DA dockets emanating from self-assessed tax, encoding into the ARMS is the responsibility of the Collection Section of the concerned Revenue District Office (RDO), while for those arising from undisputed assessment where settlements of taxes have not been made within the time prescribed for their payment, the encoding of which, under existing revenue issuance, shall be the responsibility of the Assessment Division (AD). Considering, however, that encoding into the ARMS of AR/DA dockets will require personnel complement, which, at present, is scarce at these concerned ADs, it is more convenient that a list of these AR/DA dockets arising from undisputed assessment shall be prepared in excel format and thereafter be uploaded to the ARMS by the Systems Development Division (SDD) under the Information System Development and Operation Service (ISDOS) of the Information Systems Group (ISG), using the prescribed format (Annex A). This format shall be adopted in lieu of the manually prepared Form 40 report. AacDHE Policies and Guidelines 1. In general, the AD/Large Taxpayers Service (LTS) shall forward AR/DA dockets to the Revenue District Office/Large Taxpayers Collection Enforcement Division (LTCED) for the enforcement of collection based on the following: With Registry Return Card AR/DA docket shall be forwarded to RDO/LTCED after the lapse of thirty (30) calendar days from the date of receipt by the taxpayer Without Registry Return Card AR/DA docket shall be forwarded to the RDO/LTCED after the lapse of forty (40) calendar days from the date of Mailing The AR/DA dockets transmitted to the concerned RDO/LTCED shall be covered by a transmittal list in hard and soft copies following the prescribed format (Annex "A"). Copies of the transmittal lists, in soft copies, must be forwarded to the SDD for uploading to the ARMS, through email at: [emailprotected] and [emailprotected] or to an email address which shall later be created for this purpose only, copy furnished the Collection Enforcement Division (CED), for monitoring purposes. In view of the policy in the transmission of AR/DA dockets to the concerned RDO/LTCED, there could be more than one (1) transmittal list that shall be prepared within a given month; thus, the transmittal list must be serially-numbered following the format below: For ADs under the jurisdiction of Revenue Region Nos. 5, 6, 7 and 8, the AR/DA dockets shall be directly forwarded to their respective Regional Collection Divisions (RCDs) also in accordance with the aforesaid policies. 2. In the preparation of the list, the AD/LTS shall follow the guidelines attached to the aforesaid format in accomplishing the same. In determining the appropriate classification code to be indicated in the list, enumerated below are classification codes to choose from: Classification Description Code FAN-PREA FINAL ASSESSMENT NOTICE BASED ON PRE-AUDIT FAN-RPS FINAL ASSESSMENT NOTICE BASED ON RETURNS PROCESSING SYSTEM FAN-LAWA FINAL ASSESSMENT NOTICE-ASSESSMENT BASED ON AUDIT COVERED BY A LETTER OF AUTHORITY (LA) FAN-LNWL FINAL ASSESSMENT NOTICE-ASSESSMENT BASED ON LETTER NOTICE-WITH LA ISSUED FAN-LNNL FINAL ASSESSMENT NOTICE-ASSESSMENT BASED ON LETTER NOTICE-WITHOUT LA ISSUED FAN-BENS FINAL ASSESSMENT NOTICE-ASSESSMENT BASED ON BEST EVIDENCE OBTAINABLE-WITHOUT SUB POENA DUCES TECUM (SDT) FAN-BEWS FINAL ASSESSMENT NOTICE-ASSESSMENT BASED ON BEST EVIDENCE OBTAINABLE-WITH SUB POENA DUCES TECUM (SDT) With regards to the transaction code and considering that the AR/DA dockets emanating from the AD/LTS are all covered by FANs that were issued manually, the transaction code to be indicated should be MLA which refers to "manual assessment". However, in the event that the FAN arises from the Returns Processing System, which is a system-generated FAN, the transaction code to be indicated should be SGA. 3. The SDD shall upload into the ARMS the submitted lists by the AD/LTS, within two (2) days from receipt thereof, to the respective Offices as indicated in the transmittal list. For example, if it was indicated that the list of cases shall be uploaded to the Collection Division of Revenue Region No. 7, Quezon City, the name of the aforesaid Office must be indicated below the serial number of the transmittal list. This policy shall be applicable even if the Office to which the AR/DA dockets/cases shall be uploaded has no ARMS in place. In case the delinquent account information was not successfully uploaded to the ARMS, SDD shall officially notify the concerned AD or LTS, as the case may be, of such fact and the possible reason for the failure, within the day the list was not uploaded successfully. The aforesaid notification shall be furnished to the CED for monitoring purposes. The concerned AD or LTS shall rectify the file format to enable the successful uploading into the ARMS of the list, and shall re-submit the list within three (3) working days from receipt of the notification from SDD. SDHETI To ensure the authenticity of the lists that shall be uploaded by the SDD to the ARMS, only lists received emanating from the official email address of the concerned Chief, Assessment Division or ACIR, LTS, as the case may be, shall be considered official. For this purpose, any transmittal list of created AR/DA dockets/cases originating from the respective email accounts shall be deemed authentic; hence, it shall be their responsibility that their email accounts are not shared with other persons. 4. The RDO/RCD/LTCED, thru the Collection Section or the Receivable Account and Collection Enforcement Section (RACES), in the case of RDO and RCD, respectively, shall reconcile the pending task (number of AR/DA dockets for assignment) in the ARMS as against the physical inventory of AR/DA dockets forwarded by the AD/LTS. Any discrepancy must be reported at once to the AD/LTS, or to the SDD, whichever is appropriate. In case the number of AR/DA dockets appearing in the pending task is lower than the number of physical AR/DA docket count, the discrepancy must be referred to the SDD. However, if the physical AR/DA docket count is lower than the number of AR/DA dockets waiting to be acknowledged in the ARMS, the discrepancy must be referred to the AD/LTS. Reconciliation to be done by the concerned RDOs/RCDs/LTCED shall not be limited to the physical count, but shall also cover the reconciliation of relevant information indicated in the transmittal list as against the source document attached in the AR/DA docket. In case the ARMS is not yet deployed at the concerned RDOs/RCDs, the reconciliation of AR/DA docket inventory shall be based on the information listed in the transmittal list as against the information/source document attached in the AR/DA docket. 5. The Case Officer/Seizure Agent (SA) to whom the AR/DA docket is assigned shall validate the information uploaded in the ARMS and thereafter modify the same, as the need arises. Subsequent actions on cases assigned to them must always be encoded into the system, including the subsequent transfer of docket to another SA or superior officials, if needed. The submission of the list of AR/DA dockets using the attached prescribed format shall commence for the month of January, 2013, and shall remain to be used every month thereafter until such time that a revised facility of uploading of new AR/DA dockets into the ARMS is implemented. EaHcDS Strict compliance herewith is hereby enjoined. (SGD.) KIM S. JACINTO-HENARES Commissioner Bureau of Internal Revenue ANNEX A Monthly Summary of Taxes Assessed-Unprotested ANNEX A-1 Guidelines in Accomplishing Annex "A" Fields Details Validation Rule Examples NAME OF This field shall contain the full name The maximum length of this field is 90 Individual: TAXPAYER of the taxpayer. alphanumeric characters. For Non- Dela Cruz, Juan S. Individual taxpayers, the name shall If individual, encode the name in the be written in all capital letters, while Non Individual: following series: for individual taxpayers, only the first ADD INTERNATIONAL Last Name, First Name Middle Name letters of the surname, first name and SERVICES, INC. and not the trade or business name middle name must be in capital letter. If non Individual, encode the Registered Name and not the trade or business name ADDRESS This field shall contain the full The maximum length of this field is 90 5/F Pilar Bldg. 148 address of the taxpayer. Alphanumeric Characters. Amorsolo Street, Legaspi Village, Makati City TAXPAYER This field shall contain the type of This is an auto-populated field. The I - Individual TYPE the taxpayer, whether individual or encoder needs to choose from the list N - Non Individual non-individual of values. TIN This field shall contain the registered The maximum length of this field is 9 000104418 tax identification number of an Numeric Characters. This field will not individual or non-individual taxpayer accept decimal places, blank spaces between numbers, separation of numbers by hypen (-) or slash (/) symbols BRANCH CODE This field shall contain the registered The minimum length is 3 and the 000 or 00000-99999 branch code number of an individual maximum length is 5 numeric or non-individual taxpayer characters. This field will not accept decimal places. Note: For taxpayers under the jurisdiction of the LTS, the branch code shall be defaulted to 000 or "00000" KIND OF TAX/ This field shall contain the list of Tax This is an auto-populated field. The IT - Income Tax TAX CODE* Type or Tax Codes encoder needs to choose the applicable tax type code/s from the list of values. (see Tax Codes below) PERIOD This field shall contain the Return This is a date field with MM/DD/YYYY 02/04/1977 COVERED/ period Date of the Docket Case format. Alphanumeric characters or RETURN numeric characters separated by PERIOD coma or hypen symbols are not acceptable CLASSIFICATION The choices for this classification FAN-BEWS CODE code is indicated under item no. 2 of the Operations Memorandum implementing the use of this transmittal form (revised Form 40 report) TRANSACTION The transaction code that should be MLA or SGA CODE indicated by the AD is either "MLA" which refers to "Manual Assessment" or "SGA" which refers to System- Generated Assessment ASSESSMENT This field shall contain the The maximum length of this field is 50 WE-TVN50626-06- NOTICE NUMBER Assessment Notice Number of the Alphanumeric Characters. 100694 Docket Case. FINAL This field shall contain the This is a date field with MM/DD/YYYY 02/04/1977 ASSESSMENT Transaction Date of the Docket Case. format NOTICE (FAN) DATE NOTE: The ARMS Application shall compute the Due Date once the FAN dates is loaded DATE OF MAILING This field shall contain the date of This is a date field with MM/DD/YYYY 02/04/1977 OF FAN mailing of FAN format DATE OF RECEIPT This field shall contain the FAN This is a date field with MM/DD/YYYY 02/04/1977 OF FAN Receipt Date of the Taxpayer format. Alphanumeric characters or numeric characters separated by coma or hypen symbols are not acceptable BASIC This field shall contain the This is an amount field. 12,000,432.00 DEFICIENCY TAX Deficiency Tax or Transaction Amount of the case/s to be encoded for each Docket. SURCHARGE This field shall contain the Surcharge This is an amount field. 12,000,432.00 Amount of the encoded Docket Case. INTEREST This field shall contain the Interest This is an amount field. 12,000,432.00 Amount of the encoded Docket Case. COMPROMISE This field shall contain the This is an amount field. 12,000,432.00 Compromise Amount of the encoded Docket Case. AMOUNT DUE/ This field shall contain the SUM of This is an auto-computed field. 48,001,728.00 TOTAL AMOUNT the Transaction Amount, Surcharge, Interest and Compromise REMARKS This field shall contain the necessary The maximum length of this field is 50 Note: If this field was information about the docket case/s. Alphanumeric Characters. left blank, the system will insert a generic message for Migration. Once migrated, the user can update this remarks field and encode the applicable remarks for each case/s. *KIND OF TAX/TAX CODE: CG Capital Gains Tax - Real Property CS Capital Gains Tax - Stocks DN Donor's Tax DS Documentary Stamp Tax IEHaSc ES Estate Tax ET Energy Tax IT Income Tax MC Miscellaneous Tax PT Percentage Tax QP Qualifying Fees - PAGCOR RF Registration Fee SL Percentage Tax - Special Laws SO Percentage Tax - Stocks (IPO) ST Percentage Tax - Stocks TR Travel Tax - PTA VT Value Added Tax WB Withholding Tax - Banks and Other Financial Institutions WC Withholding Tax - Compensation WE Withholding Tax - Expanded WF Withholding Tax - Final WG Withholding Tax - VAT and Other Percentage Taxes WO Withholding Tax - Others (One-Time Transaction not subject to Capital Gains tax) WR Withholding Tax - Fringe Benefits WW Withholding Tax - Percentage Tax on Winnings and Prizes XF Tobacco Inspection and Monitoring Fees TAIEcS XS Excise - Specific XV Excise - Ad Valorem