Signing of Warrants of Distraint, Levy/Garnishment, Notices of Tax Liens, Encumbrance, Levy and Seizures

May 28, 2001 REVENUE DELEGATION AUTHORITY ORDER NO. 01-01 SUBJECT : Delegation to Certain Revenue Officials of the Authority to Sign Warrants of Distraint, Levy/Garnishment, Notices of Tax Liens, Encumbrance, Levy and Seizures, as well as the Lifting thereof TO : All Internal Revenue Officers and Others Concerned I. OBJECTIVES In order to effectively manage the collection of delinquent accounts which have been increasing over the years, there is a need to fully utilize the remedies provided for under Sections 206 and 207 of the Tax Code of 1997 (Code) in the National, Regional and Revenue District Offices. In this light, it is deemed proper to further update the delineation of authority and responsibility of revenue officials who shall sign, approve, serve and execute Warrants of Distraint, Levy/Garnishment, Notices of Tax Liens, Encumbrance, Levy and Seizures, and the Lifting of such Warrants and Notices. Likewise, it has become necessary to increase the respective jurisdictional amounts by which they may be authorized to sign/approve and serve/execute the same to minimize the time and the administrative costs incurred in transmitting the collection dockets from one office to another just to secure the necessary approval and issuance of said Warrants and Notices, lest to say the risk of these collection dockets being lost in transit as a result thereof, as well as save in transportation and field work expenses of the serving/executing officer. II. SCOPE This Order shall cover the delegation of authority to sign/approve and serve/execute the following: (1) Warrant of Distraint and/or Levy (WDL); (2) Warrant of Garnishment and lifting thereof; (3) Notice of Tax Liens, Notice of Encumbrance, and lifting thereof; (4) Notice of Levy on Real Property and lifting thereof; (5) Notice of Seizure of Property; and (6) Notice of Constructive Distraint of Personal Property. III. DELEGATED APPROVING/SIGNING AUTHORITY The authority to sign and approve the documents enumerated in Subsection II hereof is hereby delegated to the following revenue officials for the proper enforcement of collection on assessments under the jurisdiction of their respective Offices: Case Description Signing/Approving Officer (1) National Office (NO) Cases other than ACIR - Collection Service LT Cases (2) Large Taxpayers Service (LT) Cases ACIR - Large Taxpayers Service (3) Large Taxpayers District Office Chief - Large Taxpayers District (LTDO) Cases Office (LTDO) (4) Regional Office (RO) Cases Revenue District Officer (RDO) The amount to be reflected in the warrants/notices shall be the total amount of delinquency tax assessed for each type of tax including surcharge and interest, except compromise penalty, against a particular taxpayer as a result of tax investigation or audit, surveillance, etc., or for self-assessed taxes (i.e., returns filed with no payment or underpayment, dishonored checks, etc.). IV. SERVICE AND EXECUTION The following Offices are hereby designated to cause the service and execution of the duly approved administrative summary processes aforestated in Subsection II hereof: Case Description Designated Office (1) National Office (NO) Cases other than Collection Enforcement LT Cases Division (CED) (2) Large Taxpayers Service (LT) Cases LT-Collection Enforcement Division (LT-CED) (3) Large Taxpayers District Office Large Taxpayers District (LTDO) Cases Office (LTDO) (4) Regional Office (RO) Cases Revenue District Office (RDO) In undermanned Revenue District Offices/LTDOs where difficulty in coping with the workload is experienced, request for assistance to provide auxiliary revenue officers to aid in the service and execution of the warrants/notices and other processes must be sought from the concerned Regional Offices/LTS to ensure that same have been acted upon within the period prescribed by the Code, existing revenue regulations and other issuances. V. RECORDS AND REPORTS A Warrant Register must be maintained by each Office designated to serve and execute the warrants of distraint, levy and garnishment. Before a copy of the warrant is furnished to the taxpayer, it must be recorded in the Warrant Register showing the following information: (1) Warrant Number; (2) Name and address of the taxpayer; (3) Assessment number (including the year issued); (4) Amount involved; (5) Date of warrant; (6) Date the warrant was served and by whom; (7) Kind and value of property seized, levied, and/or distrained; (8) Location of the property; and (9) Remarks In accordance with Section 207 (A) and (B) of the same Code, within ten (10) days from receipt of the warrant of distraint, levy, or garnishment, a report on the distraint, levy or garnishment shall be submitted by the distraining or levying officer to the following Revenue Officials: EcICDT (1) Revenue District Officer and to the Regional Director, thru the Chief-Collection Division, for regional cases; (2) Chief-LTDO and ACIR-Large Taxpayers Service, thru the Chief-LT-CED, for LTDO and LT cases; and (3) ACIR-Collection Service, thru the Chief-CED, for National Office (NO) cases other than LT cases. The aforementioned Heads of Office shall be responsible in ensuring that revenue officers assigned in the implementation of the administrative summary processes perform their tasks in accordance with the action points and timeframe provided in the Template of Regular A/R Case (Annex "J") of the Accounts Receivable System (ARS)-Operations Manual. The Office of the Deputy Commissioner-Operations Group shall exercise supervision and control, and shall monitor compliance by aforementioned Offices in the conduct of the aforestated delegated authority and functions. As such, each Office assigned in the service and execution of summary remedies shall submit to the Office of the Deputy Commissioner-Operations Group not later than the 10th day after the close of the month the following monthly reports: (1) Report of the number of delinquent account dockets received from the Assessment Group and/or transfer in accounts from other Offices (Annex "A"); (2) Report on the number of approved warrants served and those which remain to be served as of the end of the month (Annex "A" & "D"); (3) Report on warrants handled for service and execution (Annex "H"); (4) Reports on warrants closed or returned (Annex "I"); (5) Report on cases subjected to the issuance of Notice of Tax Liens (Annex "B"); (6) Report on all properties distrained, garnished or levied by them within their respective jurisdiction (Annexes "B"); (7) Report on all properties within their jurisdiction which were forfeited in favor of the Government (Annex "E") indicating, among others, the following data and information: (a) Name of taxpayer; (b) Address; (c) Amount of tax; (d) Kind of tax; (e) Description of properties, including TCT or CCT number, tax declaration number, and its location; (f) Fair market value; (g) Date of forfeiture; and (h) Income, if any. If no property is forfeited during the month such fact shall likewise be reported. (8) Report on properties sold at public auction in satisfaction of internal revenue taxes (Annex "F"); and (9) Report on all properties within their respective jurisdiction which were redeemed by the delinquent taxpayer or anyone in his behalf (Annex "G"). For uniformity in the format of the reports to be submitted, the format prescribed herein (Annexes "A" to "I") shall be used in the preparation and accomplishment of the aforementioned reports. Copies of said reports shall likewise be submitted to the following Offices within the period prescribed above for the preparation of consolidated reports which shall likewise be submitted to the Office of the DCIR-Operations not later than the 15th day after the close of the month: (1) Regional Office-Collection division for regional cases which shall consolidate these reports for submission to the Collection Enforcement Division of the Collection Service (Annex "C"); and (2) LT-CED for LTDO and LT cases which shall consolidate these reports for submission to the Collection Enforcement Division of the Collection Service (Annex "C"). The Collection Enforcement Division of the Collection Service shall generally be in charge in the management and supervision of all the delinquent accounts of the Bureau. Thus, on the basis of the summary reports submitted by the aforementioned Offices, it shall be responsible in the preparation of consolidated monthly summary reports of all delinquent accounts of the Bureau (Annex "C") for submission to the Office of the DCIR-Operations not later than the 20th day after the close of the month. VI. TRANSITORY PROVISIONS For collections which have already been endorsed to the National Office prior to the effectivity of this Order, the following guidelines shall be observed with respect to the approval and issuance of the corresponding Warrants of Distraint/Levy/Garnishment, Notices of Tax Liens, Levy, Encumbrance and Seizures, and/or the Lifting thereof: (a) For cases emanating from the Revenue District Offices and Regional Offices, the same shall be signed and approved by the ACIR-Collection Service; (b) For LT (including LT excise taxpayers) and LTDO cases, the same shall be signed and approved by the ACIR-Large Taxpayers Service; and (c) For National Office cases (Enforcement and Legal) other than the LT cases, the same shall be signed by the ACIR-Collection Service. The service and execution of (a) and (c) above shall be done by the Collection Enforcement Division (CED) whereas that of (b) shall be done by LT-CED. VII. REPEALING CLAUSE This Order amends the revenue issuances or portions of the existing revenue issuances inconsistent with any of the provisions of this Order. Accordingly, revenue issuances or portions thereof pertaining to the administrative procedures to be followed in the service and execution of the aforestated summary processes which are not inconsistent with the provisions of this Order shall still apply. VIII. EFFECTIVITY CLAUSE This Order shall take effect immediately. (SGD.) REN G. BAEZ Commissioner of Internal Revenue ANNEX A WER Form 4(a) (Revised 5/21/01) CED/LT-CED/LTDO/RDO No. ____ ____________________________ WDL Status Report For the Month ending ______________ No. of I. Status of Delinquent Accounts for Issuance of WDLs Cases Amount Beg. Balance of Delinquent Accounts for Issuance of WDLs _____________ ____________ Add: Delinquent Accounts Received from the Assessment Group _____________ ____________ Add: Delinquent Accounts Received from Other Offices _____________ ____________ Less: Delinquent Account Paid Prior to Issuance of WDLs _____________ ____________ Total Delinquent Accounts for Issuance of WDLs _____________ ____________ Less: Delinquent Accounts with Signed and Approved WDLs _____________ ____________ Ending Balance Number of Delinquent Accounts for Issuance of WDLs _____________ ____________ II. Status of WDLs on the Number of Warrants Served Number of WDLs still to be Served as of beginning of the month _____________ ____________ Add: Approved and Signed WDLs for service for the month _____________ ____________ Total Approved and Signed WDLs for service for the Month _____________ ____________ Less: WDLs served for the month _____________ ____________ WDLs still to be Served as of the end of the month _____________ ____________ III. Status of WDLs Executed and Pending Action for the Month (a) WDLs served where Notices of Tax Liens have been issued and filed _____________ ____________ (b) WDLs already served but with no Notices of Tax Lien yet _____________ ____________ (c) WDLs served but remained unexecuted at the beginning of the month _____________ ____________ Add: WDLs served during the month _____________ ____________ Total available WDLs for execution this month _____________ ____________ Less: WDLs actually executed during the month (through garnishment, distraint/levy) _____________ ____________ WDLs served but remained unexecuted at the end of the month _____________ ____________ (d) Taxpayer allowed to pay in installment _____________ ____________ IV. WDL Closed or Returned (a) Closed by actual payment as per assessment _____________ ____________ (b) Closed by compromise settlement and/or abatement _____________ ____________ (c) Closed by forfeiture/tax sale _____________ ____________ 1) personal property (no redemption period) _____________ ____________ 2) real property (after the lapse of one (1) year redemption period) _____________ ____________ (d) Returned for suspense file 1) Individual taxpayer (deceased or whereabouts unknown, no property as certified by the Register of Deeds and/or Assessor's Office, affidavit under RMO 40-87 executed) _____________ ____________ 2) Corporate taxpayer (stopped operation or dissolved per SEC, officers/stockholders can not be located, no tangible assets, subscribed shares or stock fully paid, no property as certified to by Register of Deeds and/or Assessor's Office, affidavit under RMO 40-87 executed) _____________ ____________ (e) Withdrawn/Tax Amnesty _____________ ____________ (f) Execution of WDL Suspended 1) Protest given due course by higher authorities _____________ ____________ 2) Property under Custodia Legis or for filing of proof of claim in the probate court _____________ ____________ 3) Referred to other units or districts (specify units/districts) _____________ ____________ (4) Case elevated to the CTA and is under bond or suspended _____________ ____________ Total WDL Closed or Returned or Suspended _____________ ____________ No. of fieldmen or supervisors assigned in the Office __________ No. of fieldmen or supervisors with WDL assignments a) Fieldman ___________ b) Supervisor ___________ No. of fieldmen or supervisors without WDL assignments a) Fieldman ___________ b) Supervisor ___________ ___________ Respectfully submitted: ____________________________ ____________________________ (Designation) ____________________________ (Date Prepared) ANNEX B WER Form No. 7 Report on Properties Distrained, Garnished or Levied ANNEX C WER Form No. 6 Consolidated Summary of Warrant of Distraint, Garnishment and/or Levy Handled for Service and Execution ANNEX D WER Form No. 5 Warrant of Distraint, Garnishment, and/or Levy Handled for Service and Execution ANNEX E WER Form No. 9 Report on Properties Purchased by and/or Forfeited to the Government ANNEX F WER Form No. 8 Report on Properties Sold in Public Auction ANNEX G WER Form No. 10 Report on Properties Redeemed within the Redemption Period ANNEX H WER Form No. 2 (a) WDLs and WGs Handled by RDO/Head of Office for Service and Execution ANNEX I WER Form No. 3 Report on WDLs Closed or Returned ANNEX J TEMPLATE FOR REGULAR A/R CASE No. of Days to Complete: 84 ACTION DESCRIPTION METHOD STANDARD NO. OF NTH DAYS HOURS DAYS 1 Create A/R Case A 0 0 0 2 Review / Validate AR Case C 16 2 2 3 Generate Initial (A/R) Reminder Letter A 0 0 2 4 Send Initial Reminder Letter thru Registered Mail M 1 1 3 5 Generate Final (A/R) Reminder Letter A 0 10 13 6 Send Final Reminder Letter thru Registered Mail M 1 1 14 7 Assign Case to Case Officer thru Supervisor C 1 0 14 8 Verify/Ascertain Taxpayer's properties M 10 10 24 9 Generate Warrant of Distraint and/or Levy A 0 0 24 10 Generate Warrant of Garnishment A 0 0 24 11 Generate Notice of Lien A 0 0 24 12 Generate Notice of Actual Seizure of A 0 0 24 Personal Property 13 Generate Notice of Levy on Real Property A 0 0 24 14 File Notice of Tax Lien M 0 1 25 15 Serve/Execute Warrant of Distraint and/or M 10 30 55 Levy to Taxpayer; Serve Warrant of Garnishment 16 File Notice of Actual Seizure of Personal M 5 6 61 Property, Notice of Levy on Real Property/ies to the Register of Deeds 17 Advertise and/or Publish Notice of Sale of M 2 20 81 Seized Property 18 Conduct Auction/Negotiated Sale of Forfeited M 6 1 82 Property 19 Submit Report on Proceeding of the Auction M 2 2 84 Sale of Forfeited Property Note: a) Prepare Progress Report (Case Note) after each of action 7, 13, 14, 15 to 16 b) A/R case may be referred to Legal Division at any time within the 3-year period to collect Legend : M - manual C - Computer Aided A - Automatic APPROVED BY: (SGD.) MELCHOR S. RAMOS ACIR, Collection Service