Tentative Assessments of Properties Pending Investigation

September 28, 1962 REVENUE MEMORANDUM CIRCULAR NO. 37-62 TO : All Regional Directors, Chiefs of Branches, Provincial Revenue Officers, All Fieldmen and Collection Agents This Office has noted that Register of Deeds indiscriminately allow the transfer of properties of deceased persons to their respective heirs upon showing of a receipt or a letter of exemption based on the return filed, without inquiring as to whether the said assessment or the letter of exemption is final or tentative only, there being no investigation so far conducted. This practice contravenes the intention of Sections 103 and 104 of the National Internal Revenue Code. Upon investigation and the estate is found to be subject to additional estate and inheritance taxes, difficulty arises in collecting the taxes, because the property of the deceased has already been transferred to the heirs or sold or mortgaged to third parties. In order to avoid this anomalous situation, it is hereby ordered that Chiefs of Income and Business Tax Branches, Provincial Revenue Officers and fieldmen should, in the preparation of tentative assessments pending investigation, indicate clearly in the assessment notices or in the letters of exemption of that fact, as a notice to all Register of Deeds that transfers of the decedent's property should not be effected, unless and until a final certification issued by the respective Regional Director is issued certifying that upon investigation of the estate, it has been definitely ascertained that no tax is due or that the amount due has already been collected. Likewise, Collection Agents who received payments should take rate of whether or not the assessment is tentative or final. It should clearly be indicated in the official receipt to be issued by them. Strict compliance with the above instruction is hereby enjoined. (SGD.) JOSE B. LINGAD Acting Commissioner of Internal Revenue