Revised Organization and Functions of the Large Taxpayers Division

August 26, 1998 REVENUE ADMINISTRATIVE ORDER NO. 1-98 SUBJECT : Revised Organization and Functions of the Large Taxpayers Division TO : All Revenue Officials and Employees I. OBJECTIVE: This Order aims to amend the organizational setup and functions of the Large Taxpayers Division under the Collection Service in line with the Bureau's thrust to enhance taxpayer assistance, compliance monitoring and collection enforcement activities on Large Taxpayers. II. ORGANIZATION: The Large Taxpayers Division under the Collection Service shall have the following Sections: A. Taxpayer Assistance Section; B. Performance Analysis Section; C. Collection Enforcement Section; and D. Special Industries Monitoring Section. III. FUNCTIONS: The Large Taxpayers Division (LTD) shall: 1. Formulate policies, work programs, standards, guidelines and procedures relative to the laws and issuances on Large Taxpayers; 2. Implement a taxpayer assistance program to cater to the needs of Large Taxpayers; 3. Process applications to register books of accounts, including applications to use loose-leaf sales invoices/receipts and attend to other registration-related requirements of Large Taxpayers; 4. Coordinate with concerned offices regarding claims for tax credit/refund and applications for tax exemption; 5. Analyze data on collection and other statistical reports on Large Taxpayers and prepare required management reports; 6. Coordinate with ISOS-Data Center (DC) in relation to ITS-generated reports; 7. Reconcile tax collection reports of BIR Authorized Agent Banks (AABs) for Large Taxpayers with the report on remittances from the Bureau of Treasury (BTr) and with data from validated tax returns/payment forms of Large Taxpayers; 8. Monitor compliance of Large Taxpayers with the filing of required tax returns and other documents and payment of taxes thereon, and take immediate action on Large Taxpayers who are delinquent in complying with said filing and/or payment requirements; llcd 9. Coordinate with concerned offices regarding Large Taxpayers' cases requiring audit and investigation; 10. Coordinate with ISOS-DC on the issuance of Assessment Notices for deficiency assessments as a result of audit; 11. Monitor actions taken by concerned offices on audit/investigation cases, claims for tax credit/refund and applications for exemption referred to them by the LTD; 12. Implement collection enforcement procedures on unpaid assessments, delinquent accounts and other collectible accounts from Large Taxpayers; 13. Evaluate Large Taxpayers' requests for compromise/abatement in relation to the settlement of delinquent accounts; 14. Monitor compliance of and analyze tax payment data and other information on special industry groups and prepare required management reports; and 15. Perform such other related functions as may be assigned. A. Taxpayer Assistance Section shall: 1. Process Large Taxpayers' applications for taxpayer registration/updating of records and other applications prescribed by regulations; 2. Process applications to register books of accounts, including the use of computerized accounting systems, receipts and invoices, applications to use loose-leaf sales invoices/receipts and such other registration requirements prescribed by regulations; 3. Refer applications for tax credit/refund/exemption to concerned offices and monitor actions taken by these offices on such applications; 4. Provide public information/assistance to Large Taxpayers relative to laws and issuances affecting them and disseminate necessary informative materials, such as revenue regulations, updates on tax return forms, primers and circulars; 5. Prepare and send notification letters and other correspondences to Large Taxpayers; 6. Send computer-generated Assessment Notices to Large Taxpayers; LibLex 7. Undertake initial processing of returns filed by Large Taxpayers to ensure completeness and correctness of returns filed; 8. Coordinate with other offices within the Bureau in order to provide Large Taxpayers with updated tax information materials and recommend measures to enhance taxpayer service; 9. Establish a Large Taxpayers feedback system to determine other areas of concern of Large Taxpayers; and 10. Perform such other related functions as may be assigned. B. Performance Analysis Section shall: 1. Encode in Excel template and analyze data on Large Taxpayers, such as tax payments, gross sales/income and deductions and other relevant statistics and prepare required management reports; 2. Coordinate with ISOS-DC on the ITS processing and subsequent safekeeping/storage of tax returns and other attachments filed by Large Taxpayers; 3. Reconcile tax collection data based on collection reports of BIR-AABs for Large Taxpayers, BTR reports on remitted tax collections and data from validated tax returns/payment forms of Large Taxpayers; 4. Provide Revenue Accounting Division (RAD) with reconciled reports of tax collections from Large Taxpayers for booking and other purposes; 5. Recommend amendments to tax laws and revenue issuances with regard to the modification of the criteria for determining a Large Taxpayer and the expansion of the coverage of existing laws and issuances and other matters concerning Large Taxpayers; 6. Identify Large Taxpayers and establish a Large Taxpayers Profile; 7. Identify stop-filers based on reports generated by ISOS-DC and issue reminder letters; LexLib 8. Refer delinquent Large Taxpayers to the Collection Enforcement Section; and 9. Perform such other related functions as may be assigned. C. Collection Enforcement Section shall: 1. Issue collection letters to delinquent Large Taxpayers previously identified by the Performance Analysis Section as stop-filers; 2. Prepare, serve and execute Warrants of Distraint and Levy (WDL) and/or Garnishment in relation to the settlement of delinquent accounts by Large Taxpayers; 3. Recommend the lifting of WDL and/or Garnishment in relation to the settlement of delinquent accounts by Large Taxpayers; 4. Enforce the collection of dishonored checks from Large Taxpayers; 5. Serve Notice of Tax Lien on the properties of delinquent Large Taxpayers to concerned government agencies, such as Register of Deeds or Land Transportation Office, or Writ of Garnishment to any bank where delinquent Large Taxpayers maintain bank accounts/deposits; 6. Maintain records and conduct periodic inventory of distrained and levied properties of delinquent Large Taxpayers; 7. Conduct public auction of seized/forfeited properties of Large Taxpayers with unsettled accounts; 8. Refer tax cases for audit, to the concerned offices and collect deficiency assessments as a result of audit thru BIR-AABs for Large Taxpayers; 9. Evaluate Large Taxpayers' requests for compromise/abatement in relation to the settlement of delinquent accounts; 10. Prepare and issue Authority to Cancel Assessment (ATCA) on cases settled by compromise including those under suspense file; 11. Transmit weekly to the Records Division the dockets of the terminated cases accompanied by the copies of the ATCA, together with the listing of all terminated cases during the week, for file and future reference; 12. Submit to the CIR, thru channels, monthly report of ATCAs issued indicating the name and address of the taxpayer, period covered, amount, tax type, date cancelled and assessment notice number, if there is a demand; and 13. Perform such other related functions as may be assigned. D. Special Industries Monitoring Section shall: 1. Implement a system to monitor compliance of special industry groups with the filing of required returns and other documents and payment of taxes thereon; 2. Coordinate with the concerned office/data center relative to tax collections data which are transmitted electronically and take charge of the collation of such tax data; 3. Receive/Pick-up from designated offices/entities the required Batch Control Sheets (BCSs) together with the corresponding tax returns/payment forms, diskettes and reports, of the special industry groups; 4. Encode in Excel template and analyze tax payments and other data from returns filed by taxpayers from special industry groups; 5. Coordinate with ISOS-DC on the ITS processing and subsequent safekeeping/storage of tax returns and other attachments filed by taxpayers under the special industry groups; 6. Coordinate with ISOS-DC regarding the transfer of collection data to the Revenue Data Centers (RDCs) having jurisdiction over the respective computerized Revenue District Offices (RDOs) where the taxpayers are registered; 7. Furnish reports of collection to concerned non-computerized RDOs having jurisdiction over the Head Offices of taxpayers under the special industry groups for inclusion in the RDOs' 12.09 reports and for reconciliation purposes; 8. Prepare monthly tax collection reports for each special industry group, by type of tax; 9. Prepare and generate management and statistical reports that will provide relevant information on special industry groups; and 10. Perform such other related functions as may be assigned. IV. REPEALING CLAUSE: This Order amends RAO No. 8-95 and all revenue issuances or portions thereof inconsistent herewith. V. EFFECTIVITY: This Order takes effect immediately. dctai (SGD.) BEETHOVEN L. RUALO Commissioner of Internal Revenue