Validation Procedures in Identifying Cannot Be Located Taxpayers

May 12, 2016 OPERATIONS MEMORANDUM NO. 2016-06-02 TO : All Regional Directors, Revenue District Officers, Revenue Officers and All Others Concerned RE : Validation Procedures in Identifying Cannot Be Located Taxpayers This refers to the List of Taxpayers That Cannot Be Located (CBL) required to be submitted by the Revenue District Offices (RDO) pursuant to RMC NO. 98-2010, for publication in a newspaper of wide circulation and in the BIR website. It has been observed that a number of the taxpayers listed in these reports have been inaccurately classified as CBL based on the data in the Returns Processing System (RPS). Some of these taxpayers tagged as CBL are regularly filing their tax returns in the RDO where they are registered despite having transferred to a new address or District Office, without filing an Application for Registration/Information Update (Form 1905) and vice-versa. In view thereof and in addition to the required certifications from secondary sources of information such as the Local Government Units, DTI, SEC, MERALCO and PLDT pursuant to Section II.1 of the abovementioned RMC, all concerned Revenue Officers are directed to validate the status of the CBL taxpayers initially identified before finalizing their report, to ensure that the taxpayer has been tagged/classified appropriately. The following validation/verification procedures are hereby prescribed in addition to the requirements of RMC 98-2010: 1) Check the status of the taxpayer using the following systems under the Integrated Tax System (ITS): a. Registration System (REGS); b. Collection & Bank Reconciliation System (CBR); and c. Returns Processing System (RPS). 2) For Revenue Region No. 8-Makati and all its RDOs, Large Taxpayers Service and its Divisions, also check the status of taxpayers using the following systems in the Electronic Tax Information System (eTIS): a. Tax Registration System (TRS); b. Returns Filing and Processing System (RFP); and c. Collection Reconciliation and Remittance System (CRR). 3) Validate with other stand-alone systems such as: a. RELIEF/Summary List of Sales and Purchases (SLSP); and b. Mobile Revenue Collection Officer System (MRCOS). 4) Request verification from ISG to check on the eFPS and/or eBIR Forms facility. 5) Conduct telephone verifications of registered contact persons and/or tax agents. acEHCD Strict compliance is hereby enjoined. (SGD.) KIM S. JACINTO-HENARES Commissioner of Internal Revenue