Additional Instructions Regarding Acceptance of Private Checks in Payment of Internal Revenue Taxes

March 18, 1965 REVENUE MEMORANDUM CIRCULAR NO. 17-65 TO : All Regional Directors, Chief Revenue Officers, Collection Coordinators, Revenue Collectors and All Others Concerned SUBJECT : Additional Instructions Regarding Acceptance of Private Checks in Payment of Internal Revenue Taxes In view of the increasing number of unredeemed dishonored checks paid by taxpayer for internal revenue taxes in the possession of Collection Agents and Cash Clerks, the following additional instructions are hereby promulgated, as supplement to the instructions contained in Sections 8 & 9, Chapter VII of the Manual of Instructions to Collection Agents and Cash Clerks, and GAO Memorandum Circular No. 469, dated August 13, 1962, as embodied in Revenue Memorandum Circular No. 25-64, dated July 2, 1964. cdt 1. No private check drawn by a taxpayer in payment of his taxes will be accepted if he has an outstanding dishonored check in the possession of a Collection Agent. In such a case, the taxpayer shall be required to redeem the outstanding check together with the corresponding administrative penalties, and to pay in cash or by certified check his current tax. 2. As it is contrary to regulations to accept accommodation check, or private check by any other person or firm in payment of taxes of another person, private checks drawn by Business Agencies in payment of revenue taxes of their clients shall not be accepted unless the same are certified by the banks on which they are drawn. 3. Within ten (10) days from receipt of this Circular, all Revenue Collectors shall submit to this Office in duplicate a detailed list of outstanding dishonored checks, showing: 1) The check number and date 2) The amount of the check 3) The drawer of payor 4) The drawee bank 5) The number of the official receipt issued therefor In this connection, attention is invited to the provisions of paragraph 6 of GAO Memorandum Circular No. 469 relative to the preparation in triplicate of a list of monthly report of unsettled dishonored checks and the submission of copies thereof within five (5) days after the end of each month to this Office and to the Bureau Auditor. The failure to comply strictly with such GAO Memorandum Circular has resulted in the increasing number of unsettled dishonored checks due to lack of follow-up by Revenue Collectors for their prompt redemption by the taxpayers concerned. Strict compliance with this Revenue Memorandum Circular is hereby enjoined. LLpr (SGD.) BENJAMIN N. TABIOS Acting Commissioner of Internal Revenue APPROVED: (SGD.) RUFINO G. HECHANOVA Secretary of Finance