Issuance of Receipts (B.I.R. Form No. 19.14) for Seized Documents, Books, Papers and Articles

October 13, 1965 REVENUE MEMORANDUM CIRCULAR NO. 37-65 SUBJECT : Issuance of Receipts (B.I.R. Form No. 19.14) for Seized Documents, Books, Papers and Articles TO : All Internal Revenue Officers & Others Concerned It has been observed by this Office from the reports submitted by fieldmen that seizure of tax receipts, licenses, books, documents, papers and/or articles from taxpayers or persons with whom they have official dealings is not in accordance with the provisions of Field Circular No. V-19 dated October 28, 1947. Seizures are made with plain paper as receipts or with the required form (B.I.R. Form No. 19.14) but no reports on the results of the investigation are submitted. An inspection of the offices of Chief Revenue Officers and Regional Directors show that there are plenty of seized books, papers and other articles which are just lying around with no proper inventory and which pile up from year to year without any disposal thereof being made. Even if the case had been terminated, the seized articles remain in the custody of the Regional Director and Chief Revenue Officer to the extent that complaints have been received from taxpayers that articles seized from them have not been returned although the corresponding case had been terminated. LexLib In view thereof and in order to insure an effective control in the seizure of articles from taxpayers and to pinpoint responsibility, the following procedure is hereby promulgated for the compliance of all concerned: 1. Effective immediately all Chief Revenue Officers, Assistant Chief Revenue Officers, Group Supervisors, Examiners, Inspectors and other fieldmen authorized to investigate books of accounts are hereby enjoined to see to it that no other receipt except B.I.R. Form No. 19.14 is issued for seized tax receipts, licenses, books, documents, papers and/or articles from taxpayers or persons with whom they have official dealings. Upon receipt of this Revenue Memorandum Circular sufficient number of receipt books should be requisitioned from the Property Division to last for a period of one (1) year for distribution to the fieldmen under their respective jurisdiction. In the National Office requisitions should be made by the Division Chiefs who have fieldmen conducting investigation work. 2. An inventory should be taken by the Chief Revenue Officer, Chief of Branch or Chief of Division concerned, of all the booklets of receipts in the possession of the fieldmen within their jurisdiction, which should be duly listed. Three extra copies of the list should be forwarded to the following officials: (a) Regional Director (b) Revenue Operations Head (Assessment or Specific Tax) (c) Chief, Property Division The Chief of the Property Division should determine from the copy of the list forwarded to him whether the booklets issued are all properly accounted for. 3. As much as possible each fieldman should be issued a receipt book for which he shall be made accountable. In case there are not enough booklets to distribute, a common receipt book may be kept by the Chief Revenue Officer or Group Supervisor as the case may be, for the use of the district or the group as the needs may arise. 4. The receipt should be accomplished in triplicate and distributed as follows: a. Original to the Taxpayer b. Duplicate to the Group Supervisors; if there is no group supervisor in the Unit to the Assistant Chief Revenue Officer; and if there is no Assistant Chief Revenue Officer to the Chief Revenue Officer. c. Triplicate should remain with the booklet All the blank spaces on the face of the receipt should be filled by the issuing officer who should sign his name clearly above his official title which should also be written clearly. Upon the settlement of the case, the blank spaces on the reverse side of the triplicate should likewise be accomplished. cdtech 5. At the end of the month, the revenue official who has supervision over fieldmen issuing the receipts and is in possession of the duplicate copies, should check the duplicates in his possession against the triplicates remaining with the receipt book in the possession of the fieldman, to determine the status of cases apprehended for which receipts have been issued during the month. If the cases have been settled, he should check whether the corresponding reports have been submitted. If there are cases no yet settled, he should call the attention of the fieldmen to expedite settlement thereof. As soon as all the cases in a booklet have been settled, the receipt book should be surrendered by the fieldman to his immediate superior who shall in turn forward it to the Regional Office for permanent file in the Administrative Branch. 6. The Chief Revenue Officer or the Chief of Branch in the Regional Office should prepare a monthly report of receipts so issued containing the following information: 1. Number of receipt 2. Name of taxpayer 3. Nature of violation 4. Issuing Fieldman 5. Status of the case The monthly report should also include a summary statement illustrated as follows: (1) Number of receipts pending at the beginning of the month xxxx (2) Number of receipts issued during the month xxxx (3) Total Handled During the Month xxxx (4) Number of receipts settled during the month xxxx (5) Balance at the end of the month xxxx Copies of this report should be furnished the Regional Director and the National Office. 7. The Official who has custody of the records and articles seized should see to it that in all cases settled or closed, the seized articles composed of books, records, privilege tax receipts and licenses are returned to the owners immediately upon the settling or closing of the case. If the seized articles consist of fraudulent weights and measures, articles subject to specific tax and other similar articles which the law requires to be forfeited in favor of the government instead of returning them to the taxpayer from whom seized, the official concerned should take appropriate action towards disposing the said articles in accordance with law and regulations. This Revenue Memorandum Circular revokes the provisions of Field Circular No. V-19, dated October 28, 1947 and is effective immediately. (SGD.) MISAEL P. VERA Acting Commissioner of Internal Revenue APPROVED: October 26, 1965 (SGD.) RUFINO G. HECHANOVA Secretary of Finance