Strict Monitoring on the Redemption of Dishonored Checks Received

April 10, 2014 OPERATIONS MEMORANDUM NO. 2014-04-01 TO : All Regional Directors All Revenue District Officers All Regional Collection Division Chiefs All Regional Legal Divisions All Arrears Management Teams in Metro Manila Regions All Revenue Collection Officers in the RDOs and AMTs SUBJECT : Strict Monitoring on the Redemption of Dishonored Checks Received This is with reference to the COA Observations on the absence of monitoring of dishonored checks received by the Revenue District Offices (RDOs) and the Regional Collection Divisions (RCDs) which resulted to the increase of outstanding dishonored checks in the Bureau's book of accounts. HEITAD Relative thereto and to ensure the proper and regular monitoring of all outstanding dishonored checks, the following actions shall be timely undertaken by the concerned offices: The RDO in Regional Office without AMT shall: 1. Encode the details of the dishonored check to the "Dishonored Checks" module in the ITS-Collection and Bank Reconciliation System (CBRS); 2. Encode the details of the dishonored check to the Accounts Receivable Management System (ARMS) (This is applicable only in RDOs where the ARMS is already deployed and implemented) ; 3. Collect the amount of tax due, inclusive of the appropriate delinquency penalties, from the concerned taxpayer thru collection letters or summary remedies, as the case may be, in accordance with the existing guidelines and policies; 4. Forward the case docket to Regional Legal Division, if legal action is necessary; 5. Prepare and submit to the Revenue Accounting Division (RAD) a Monthly List of Dishonored Checks Received during the month on or before the 15th day of the following month; and 6. Prepare and submit to the Assistant Commissioner, Collection Service Attn: The Chief, RAD, copy furnished the Regional Director, a Consolidated Monthly Status Report of Dishonored Checks Received and Redeemed (BIR Form No. 12.61) together with the copies of the payment forms (BIR Form No. 0605) evidencing the redemption of the dishonored checks duly validated by the concerned AAB, or the electronic Revenue Official Receipt (eROR) issued by the RCO, as the case may be, for the preparation of the required Journal Entry Vouchers (JEVs) by the RAD. The RDO in Regional Office with AMT shall: 1. Encode the details of the dishonored check to the "Dishonored Checks" module in the ITS-Collection and Bank Reconciliation System (CBRS); 2. Encode the details of the dishonored check to the Accounts Receivable Management System (ARMS) (This is applicable only in RDOs where the ARMS is already deployed and implemented) ; and 3. Transmit the dishonored check to the concerned RCD within the (10) working days reckoned from the date when the dishonored check was physically returned by the AAB for check presented over-the-counter by the taxpayer to AABs or AGDB, for check received from taxpayers thru Revenue Collection Officers (RCOs), as the case may be. The AMT shall: 1. Check the completeness of the physical dishonored check docket transmitted by the RDO ( e.g., certified true copy of the manually filed return/payment form, original copy of the dishonored check, and report of returned dishonored check (BIR Form No. 12.58) issued by the concerned AAB or AGDB); 2. Collect the amount of tax due, inclusive of the appropriate delinquency penalties, from the concerned taxpayer thru collection letters or summary remedies, as the case may be, in accordance with the existing guidelines and policies; 3. Forward the case docket to Legal Division, if legal action is necessary; 4. Prepare and submit to the Revenue Accounting Division (RAD) a Monthly List of Dishonored Checks Received during the month on or before the 15th day of the following month; and 5. Prepare and submit to the Assistant Commissioner, Collection Service Attn: The Chief, RAD, copy furnished the Regional Director, a Consolidated Monthly Status Report of Dishonored Checks Received and Redeemed (BIR Form No. 12.61) together with the copies of the payment forms (BIR Form No. 0605) evidencing the redemption of the dishonored checks duly validated by the concerned AAB, or the electronic Revenue Official Receipt (eROR) issued by the RCO, as the case may be, for the preparation of the required Journal Entry Vouchers (JEVs) by the RAD. ATICcS For your information and strict compliance. (SGD.) NELSON M. ASPE Deputy Commissioner Operations Group