Guidelines on Whether or Not to Appeal from Adverse Court Decisions

May 23, 2001 REVENUE MEMORANDUM CIRCULAR NO. 26-01 SUBJECT : Guidelines on Whether or Not to Appeal from Adverse Court Decisions TO : All Internal Revenue Officers Concerned In order to determine whether or not to appeal from adverse court decisions , the following guidelines shall be observed: 1. Decisions in assessment cases or in refund cases where there is an administrative decision denying the claim shall always be appealed; 2. Decisions involving purely legal issues (except, a legal issue on which the BIR has previously issued a ruling specifically involving, and favorable to, the same taxpayer who is a party to the court case) or mixed legal and factual issues, whether in assessment or in refund cases, shall always be appealed; and 3. Decisions involving purely factual issues in refund cases, as a rule, may not be appealed except when there are compelling factual grounds for an appeal. In case of appeal, the petition for review should be submitted to the Commissioner, at least seven (7) working days before the due date for filing thereof. If appeal is not necessary, the recommendation not to appeal must be immediately prepared upon receipt of the adverse decision. In the meantime, a motion for reconsideration of the decision must be filed in order to suspend the period of appeal, thereby gaining more time to consider the recommendation not to appeal. Action on the recommendation not to appeal must be given priority in such a way that such recommendation shall reach the Office of the Commissioner not later than ten (10) calendar days from receipt of the decision, or at least seven (7) working days before the original due date for filing of appeal, whichever comes earlier, for cases handled by the National Office, and not later than fifteen (15) calendar days from receipt of the decision, or at least seven (7) working days before the original due date for filing of appeal, whichever comes earlier, for cases handled by the Regional Offices. All internal revenue officers and others concerned are requested to give this Circular as wide a publicity as possible. (SGD.) REN G. BAEZ Commissioner of Internal Revenue