Issuance of Warrants of Distraint/Levy for Accounts Paid by Checks Which Were Later Dishonored and Delinquent Taxes Due Per Return

September 30, 1975 REVENUE MEMORANDUM CIRCULAR NO. 36-75 SUBJECT : Issuance of Warrants of Distraint/Levy for Accounts Paid by Checks Which Were Later Dishonored and Delinquent Taxes Due Per Return TO : All Internal Revenue Officers and Others Concerned This is quoted hereunder BIR Ruling No. 75-006 dated September 12, 1975 for the information, guidance and implementation by all concerned, as follows: "1. Where the tax shown on the return is not paid on time (including dishonored checks), it can be collected immediately by distraint and levy. This is for the reason that the requirement of the 90-day period is intended for deficiency assessments and not for tax due per return of the taxpayer, the basis therefor being already known to him. "2. In case of failure by taxpayer to pay the 2nd installment of the tax shown on the return, which is on July 15, the tax, for the same reason, may also be collected immediately by distraint and levy. "However, before resorting to the summary remedies for collection, the taxpayer should be notified of the fact of dishonor of his check and advised to redeem the check within a certain period (perhaps 15 days from receipt of notice) and to pay all penalties incident to delinquency, with the warning that should he fail to do so, he shall be criminally prosecuted and the tax collected by summary remedies. (SGD) CONRADO P. DIAZ Acting Commissioner of Internal Revenue TAN-1182-568-4" For the purpose of effecting speedy collection of delinquent taxes paid by checks which were dishonored upon clearing, and delinquent taxes which were due per return, all officials concerned are hereby instructed to issue warrants of distraint and of levy for the collection thereof. It is also instructed that such warrants of distraint and of levy shall be served and executed within the time prescribed in Chapter II of Title IX of the National Internal Revenue Code. All warrants issued, served and/or executed in pursuance hereof shall be clearly identified as such in the monthly Warrant Enforcement Reports (WER) heretofore prescribed. EFREN I. PLANA Acting Commissioner of Internal Revenue TAN-1456-040-3