Use of the Accounts Receivable Management System (ARMS) in the Creation of New Accounts Receivable/Delinquent Account Dockets and Cases Arising from Unprotested Final Assessment Notices (FANs)

August 26, 2014 OPERATIONS MEMORANDUM NO. 4-2014 TO : ACIR, Assessment Service ACIR, Large Taxpayers Service ACIR, Enforcement Service HREA, Regular Large Taxpayers HREA, Excise Large Taxpayers All Regional Directors All Chiefs, Regional Assessment Divisions SUBJECT : Use of the Accounts Receivable Management System (ARMS) in the Creation of New Accounts Receivable/Delinquent Account Dockets and Cases Arising from Unprotested Final Assessment Notices (FANs) Operations Memorandum (OM) No. 1-2013, as amended by OM No. 2-2014, provides that Accounts Receivable/Delinquent Account (AR/DA) arising from unprotested Final Assessment Notices (FANs) shall be created in the Accounts Receivable Management System (ARMS) by using the customized Form 40 excel format, wherein the details of the new AR/DA dockets and cases are encoded in the aforesaid excel format and submitted to the Systems Development Division (SDD) for uploading into the ARMS database. Each row of the excel format shall be occupied by a single AR/DA case, while in the creation of AR/DA docket, each unique taxable period shall pertain to a single AR/DA docket. As such, in each unique taxable period, one docket is supposed to be created where there may be more than one AR/DA case. HTcADC The use of the Form 40 excel format was intended to facilitate the immediate uploading of new AR/DA cases arising from unprotested FANs. However, reports revealed that the intended outcome was not attained. Observations further revealed that a person encoding the details of the FANs in the excel format will consume the same amount of time when the same are encoded directly in the ARMS facility using the add docket sub-module under the AR/DA module of the ARMS. In view of the foregoing, this Operations Memorandum is issued directing all Metro Manila Assessment Divisions (Revenue Region Nos. 5 to 8) to immediately discontinue the use of the Form 40 excel format in creating new AR/DA dockets and cases covering unprotested FANs, the collection of which were already considered final, executory and demandable; thereby amending certain provisions of OM Nos. 1-2013 and 2-2013. In lieu thereof, the creation of new AR/DA dockets and cases for these accounts should be encoded directly by the concerned Regional Assessment Divisions using the "Add Docket" module in the ARMS facility. For your strict compliance. (SGD.) KIM S. JACINTO-HENARES Commissioner of Internal Revenue