Operations Memorandum No. 2015-10-02

October 12, 2015 OPERATIONS MEMORANDUM NO. 2015-10-02 TO : ACIR, Large Taxpayers Service ACIR, Collection Service ACIR, Assessment Service ACIR, Legal Service ACIR, Enforcement and Advocacy Service All Regional Directors All Revenue District Officers All Chiefs, Assessment Divisions All Chiefs, Collection Divisions All Chiefs, Legal Divisions All Chiefs, Special Investigation Divisions Chief, Litigation Division Chief, Prosecution Division Chief, Appellate Division Chief, Law and Legislative Division Chief, National Investigation Division Chiefs, Regular Large Taxpayers Audit Divisions 1 to 3 Chiefs, Excise Large Taxpayers Audit Divisions 1 to 2 Chiefs, Large Taxpayers Divisions Makati and Cebu Chief, Large Taxpayers Collection Enforcement Division Chief, Accounts Receivable Monitoring Division All Others Concerned SUBJECT : Enhanced BIR Form No. 0319 General Control Ledger and Its Attachments BIR Form Nos. 0319-A1, 0319-A2, 0319-A3, 0319-A4, 0319-A5 and 0319-A6 The handling of Accounts Receivables/Delinquent Accounts (AR/DAs) of the Bureau is a very crucial function and this is the primary reason for the development of the Accounts Receivable Management System (ARMS). Considering that the aforesaid system has not yet been deployed to all concerned offices nationwide, the manual tracking of these cases, as well as the preparation of the requisite reports related to AR/DAs, could not yet be dispensed with. As part of the continuing efforts to expedite the consolidation of the monthly General Control Ledger (GCL) reports, as well as to provide timely and accurate AR/DA information to both internal and external stakeholders, the BIR Form No. 0319 General Control Ledger and its Attachments required under OM No. 3-2013 dated April 15, 2013 are hereby further enhanced under Annexes "A" to "G" hereof. The enhancements or revisions made to the aforementioned forms are summarized hereunder: BIR Summary of Reason for Form Form Title Form Description Changes Changes No. 0319 GENERAL This is the master control Added "Prior Under the existing CONTROL form required to be Month's procedures, when the LEDGER maintained and regularly Adjustments on concerned GCL-preparing updated by all offices Reported office discovered certain handling AR/DA Values" columns errors in the previously dockets/cases which submitted GCL reports, it shows their respective needs to prepare and actual AR/DA inventory, submit to the Accounts as well as the accuracy of Receivable Monitoring the details thereof, at the Division (ARMD) not only end of each given month. the corrected report This report form covering the specific summarizes all the month where the movements of delinquent underlying error was accounts. It should be detected, but all GCL properly and accurately reports covering the filled-out. Aggregate subsequent report periods totals of the entries in the up to the report month prescribed GCL when the said errors were attachments must always discovered. For example, tally with the amount if error was discovered on being reflected in the October 1, 2015 pertaining master GCL. to the GCL report for the month of July 2014, the concerned office must prepare and submit to the ARMD the corrected reports for the month of July 2014 and all the monthly reports thereafter up to September 2015. This is necessary because the errors made in July 2014, when corrected, have created distortions in the beginning and ending balances of AR/DA accounts in the succeeding months. In order to correct the erroneously submitted data, these series of adjustments in all the applicable months have been too cumbersome to both the GCL preparing office as well as that of the ARMD, the GCL monitoring and consolidating office. Accordingly, the revision of the report format will accommodate the revised policy of simply making adjustments on previous months' reports in the current month without preparing amended reports covering the previous periods affected by the adjustments. 0319- MONTHLY This form shows the list Added To properly account the A1 LIST OF NEW of newly created AR/DA "No. of Dockets total number of dockets ACCOUNTS cases arising from and Cases" and cases of newly created CREATED unprotested Final columns ARs/DAs with no protest Assessment Notice received from concerned (FAN) and Self Assessed taxpayers within 30 days Tax (SAT) such as from taxpayer's receipt of Unpaid Tax Due per the FAN on or before the Return (UTDR); Unpaid due dates of payment of Dishonored Checks self-assessed taxes. (UDC); and Unpaid Second Installments Added In order to identify the (USI). This form shall be "Business correct business entity in utilized by the Regional Name" column cases where the individual Assessment Divisions (non-corporate) taxpayer and ACIR-LTS (for has more than one (1) unprotested FANs) and registered businesses. This the Revenue District information will clearly Offices (for self-assessed establish the taxpayer taxes). branch/es that gave rise to the delinquent accounts. Added To properly identify the "Address" registered business address column of the delinquent taxpayer and the proper Revenue District Office having jurisdiction over it/him/her. 0319- MONTHLY This form shows the list Deleted This column was deleted to A2 LIST OF of tax dockets which had "Sequence avoid misconception in the TRANSFERRED- been transferred into the number" column proper counting of AR/DA IN ACCOUNTS concerned office's dockets and cases. accountability. The transfer shall be effective Added To properly account the upon the receipt of the "No. of Dockets total number of AR/DA physical docket or the and Cases" dockets and cases that electronic columns were transferred-in from acknowledgement of the one accountable office to transfer, thru the use of another office during each the ARMS. In reporting and every reporting month. the transferred-in accounts, the amounts to NOTE: To avoid the be indicated in the report erroneous encoding of should be net of the details of transferred amounts previously paid AR/DA cases, hard and by the taxpayer. For electronic copies shall be example, if a transferred- attached or sent to the new in case has reported accountable office with this values for basic tax, form. surcharge, interest and compromise penalty per Deleted the To reflect the total FAN; and that upon "Basic" sub- delinquency penalties for receipt of the case docket column under the each and every AR/DA from another office, it "Delinquency case such as surcharge, was noted that the Penalties" interest and compromise taxpayer has a pending column as of a given date in application for abatement addition to the total amount of penalties and that the due per FAN/SAT that is basic amount due was reported in the GCL already paid in full by the through the Monthly List of taxpayer with the said New Accounts Created. prior office, the report for Furthermore, this transferred-in docket/case additional column should should already reflect a be filled up in case the zero value under the reported collection from basic tax column but the delinquent account is more money values for other than the amount reflected assessment details must in the FAN/SAT so that the still be indicated. ending balance of the case will reflect a "zero" and not a "negative" balance. The "Basic" tax column was deleted because there is no computation for basic tax under delinquency penalties imposed on a per AR/DA case. Added "Total To obtain the exact amount Deductions" still due per FAN/SAT. column This column must reflect all deductions made (installment payments, full payment, ATCA issued, compromise settlement, abatement of penalties, etc.) for each and every AR/DA case of the concerned taxpayer. Added "Amount To reflect the net amount Still due" still due from each and column every AR/DA case. However, the payments/deductions from the amount due must be correctly applied to the appropriate account details (i.e., basic tax, surcharge, interest and compromise penalty) after deducting the payments, garnishments, ATCA, etc. "Remarks" To further specify and state column additional information in each and every AR/DA case, especially if it needs more clarification on its exact current status. For example, if the AR/DA case has been applied for the abatement of penalties, such fact must be indicated in the Remarks column covering the said AR/DA case. 0319- MONTHLY LIST This form shows the list Added To properly account the A3 OF ACCOUNTS of accounts with either "No. of Dockets total number of AR/DA WITH partial or full payments, and Cases" dockets and cases that PAYMENTS arising from the columns were paid for the reporting settlement of the AR/DA month. thru voluntary payment, compromise, abatement, "Delinquency To reflect the total garnishment, installment, Penalties" delinquency penalties paid seizure of properties, etc. columns for each and every AR/DA This form shall be used case such as surcharge, by offices having interest and compromise accountability over the as of a given date in AR/DA docket at the addition to the total amount time when collections due per FAN/SAT that is therefrom were made by reported in the GCL the said accountable through the Monthly List of office. Accordingly, the New Accounts Created. use of this form should Furthermore, this not be limited to offices additional column should with collection be filled up in case the enforcement functions reported collection from [e.g., Large Taxpayers delinquent account is more Collection Enforcement than the amount reflected Division (LTCED), in the FAN/SAT so that the Accounts Receivables ending balance of the Monitoring Division case will reflect a "zero" and (ARMD), RDOs and not a "negative" balance. Collection Division- AMT]. Added To correctly reflect the "Deductions" deductions in each and column every AR/DA case wherein information on the Settlement Mode, Payment Code and Reference Number used by the concerned taxpayer are specifically identified, together with the actual date/s of payment/s made for the reporting month. "Remarks" To further specify and state column additional information in each and every AR/DA case, more especially if it needs more clarification on its exact current status. For this purpose, the modes of settlement for each and every AR/DA case (e.g., full payment, installment payment, compromise settlement, etc. must be indicated in the Remarks column covering the said AR/DA case. 0319- MONTHLY LIST This form shows the list Added To properly account the A4 OF ACCOUNTS of accounts that were "No. of Dockets total number of AR/DA CANCELLED BY cancelled through an and Cases" dockets and cases that ATCA approved Authority to columns were cancelled thru the Cancel Assessment issuance of ATCA that was (ATCA). approved and signed by the Regional Director for the reporting month. NOTE: To ensure that only authorized cancellations of ARs/DAs are being reported. The copy of the duly approved ATCA shall be attached with this form. "ATCA Details" To properly identify the Columns details of each and every AR/DA case cancelled for the reporting month such as ATCA Number, Date Signed, and the Amount Cancelled. In case the outstanding delinquent account is the subject matter of an authorized full cancellation thereof, the net AR/DA balance after effecting the ATCA should be "zero" value and not a negative balance. However, if the ATCA is issued to partially settle the AR/DA case, the net balance, after deducting the amount covered by the approved ATCA, must still be reflected in the net balance of the AR/DA case. Added To properly indicate the "Reason for reason of the full or partial ATCA" column cancellation of a certain AR/DA case which may be, but not limited to, the following reasons: Prescribed Case, Approved Compromise Settlement, Approved Abatement, and Court Decision. 0319- MONTHLY This form shows the list Added To properly account the A5 LIST OF of tax dockets which have "No. of Dockets total number of dockets TRANSFERRED- been transferred- and Cases" and cases that had been OUT out/referred to other columns transferred-out from an ACCOUNTS Bureau offices for accountable office to necessary action. The another accountable office rule in the reporting of and to efficiently monitor transferred-out cases the total number of dockets from one office to that are still "in-transit'' another must be the same (i.e., the transmitting office as that of transferred-in has already reported the cases. However to ensure case as "transferred-out" that the consolidated but the receiving office has report on AR/DA cases not yet reported the same are not understated/ as "transferred-in"). overstated, it shall be the responsibility of the NOTE: To avoid the Regional Collection erroneous encoding of Divisions to verify that details of transferred the GCLs of the AR/DA cases, an concerned offices under electronic copy shall be the jurisdiction of the attached or sent to the new Regional Office are accountable office with this correctly filled-out and form. reflective of these information. Furthermore, Added To reflect the total in case the AR/DA case "Delinquency delinquency penalties for was determined to be "in- Penalties" each and every AR/DA transit" during a given columns case, such as surcharge, report month (e.g., one interest and compromise office has reported as of a given date in transferred-out cases to addition to the total amount another office but the due per FAN/SAT that is latter office has not reported in the General recognized any Control Ledger through the transferred-in cases), the Monthly List of New concerned Regional Accounts Created. Collection Division must Furthermore, this ensure that said AR/DA additional column should cases are included in the be filled out in case the inventory report and GCL reported collection from by one proper delinquent account is more accountable office. than the amount reflected in the FAN/SAT so that the ending balance of the case will reflect a "zero" and not a "negative" balance. Added "Total To obtain the exact amount Deductions" still due per FAN/SAT. column This column must reflective of all deductions made (installment payments, full payment, ATCA issued, compromise settlement, abatement of penalties, etc.) in each and every AR/DA case of the concerned taxpayer. Added "Amount To reflect the net amount Still due" still due from each and column every AR/DA case. However, the payments/deductions from the amount due must be correctly applied to the appropriate account details (i.e., basic tax, surcharge, interest and compromise penalty) after deducting the payments, garnishments, ATCA, etc. 0319- PRIOR MONTH'S This form is an additional Added New To ease the burden to the A6 ADJUSTMENTS attachment required in Attachment to the GCL preparer and GCL ON REPORTED submitting GCL reports GCL report analyst on the unlimited VALUES that will take up all the submissions and adjustments on errors monitoring of amended made on reports in GCL reports every time an previous months that error was discovered were discovered during during the current month the current month that are attributable to pertaining to information errors committed in the on values (i.e., number of previous reporting periods. dockets, number of cases or amount assessments per FAN or unpaid tax due for SAT). The errors may be due to double posting, typographical errors, erroneous reporting as delinquent accounts, etc. The reasons for such adjustments should likewise be indicated in this attachment. 0319- PRIOR MONTH'S This form is an additional Added New To ease the burden to the A6.1 CORRECTION attachment required in Attachment to the GCL preparer and GCL ON REPORTED submitting GCL reports GCL report analyst on the unlimited NON-VALUE that will take up all the submissions and DETAILS adjustments on errors monitoring of amended made on reports in GCL reports every time an previous months that error was discovered were discovered during during the current month the current month that are attributable to pertaining to non-value errors committed in the details (i.e., assessment previous reporting periods. number, filing reference number, docket locator number and other non- value detail of assessment per FAN or unpaid tax due for SAT). The error may be due to typographical errors, incorrectly filled up fields, etc. Additional information that are not captured in the other columns of the report may be indicated in the Remarks column. In order to properly guide all concerned offices in accomplishing the herein revised report forms, the Guidelines in Accomplishing the monthly GCL Report and its Attachments are likewise included as Annex "H" hereof. cDHAES The use of the abovementioned enhanced report forms shall commence with the submission of the GCL reports for the month of September, 2015 and every month thereafter. Strict compliance herewith is hereby enjoined. (SGD.) KIM S. JACINTO-HENARES Commissioner of Internal Revenue