Procedures for the Issuance of Taxpayer Account Numbers to Rural Bank Borrowers and Mortgagors

September 25, 1972 REVENUE MEMORANDUM CIRCULAR NO. 48-72 SUBJECT : Procedures for the Issuance of Taxpayer Account Numbers to Rural Bank Borrowers and Mortgagors TO : All Rural Bank Presidents/Managers and Others Concerned Upon representations of the Secretary of Agriculture and Natural Resources to the Secretary of Finance that in view of the provisions of Revenue Regulations No. 10-65 and Executive Order No. 213, dated March 5, 1970, requiring taxpayer account numbers (TAN) from borrowers and mortgagors having transactions with rural banks, every president/manager of a rural bank is hereby authorized by the Commissioner to issue Taxpayer Account Numbers (TAN) to his bank borrowers or mortgagors who were not previously issued TAN by any BIR office. For this purpose, the following procedures are hereby promulgated: 1.The BIR Data Processing Center shall issue to every rural bank president/manager unissued TAN in blocks of 500 numbers in duplicate with carbon sheets in between. Only numbers, which are the TAN, appear in those sheets of continuous forms but columns for name, address, sex and date of birth are provided. 2.Issuing TAN should not be made indiscriminately. The rural bank should first determine from the borrower or mortgagor if he has ever been issued a TAN by any office of the BIR. If the borrower or mortgagor has filed income tax returns before or transacted business with any government office, in all likelihood he was already given a TAN and he should produce it. Otherwise, he shall be issued a TAN from the list supplied by the BIR Data Processing Center. The issuing official of the rural bank shall write or print very legibly after the issued TAN in designated columns the name, address, sex and date of birth of the borrower or mortgagor. The entries should also show on the duplicate copy, that is why there is a carbon sheet in between. 3.If a borrower and/or mortgagor claims or says that he was given a TAN previously but does not have a way of stating the exact number or it cannot be checked with the nearest BIR office, he shall also be given a new TAN and the entries likewise indicated after the new TAN issued provided a letter "T" is indicated on the sheet before his new number to indicate that it is a temporary one but nevertheless valid for the purpose of transactions with the bank or with the BIR. When the true number shall have been verified by the BIR Data Processing Center, the borrower and/or mortgagor shall be notified accordingly thru the rural bank which issued the temporary TAN. The rural bank shall be given instructions on the cancelled temporary TAN so that it can update its own records. Those who filed income tax returns in earlier years but cannot produce their TANs shall likewise be issued new TAN following this same procedure. 4.Every TAN issued shall be the permanent number of the borrower and/or mortgagor and he should be advised to take note of his TAN for future transactions not only with the bank but also with other institutions requiring the same or with the government. For this purpose, the rural bank president/manager shall issue a sort of form letter to the borrower or mortgagor as a formal notice of the TAN issued citing this Circular as an authority for doing so. Such notice, duly signed, shall be valid when presented whenever TAN is required. 5. The issuance of taxpayer account numbers is a service to the public and no fee should be charged the borrower and/or mortgagor for issuing him a TAN . 6.TAN should be issued in consecutive order as they appear on the TAN sheets. No number should be left blank. 7.When five (5) pages of the TAN sheets have been issued and the columns properly filled up, the original shall be detached and sent to: Data Processing Center Bureau of Internal Revenue Quezon Boulevard Extension East Triangle, Quezon City The duplicate shall be retained by the bank for its reference. When additional TANs are needed by the bank for its transactions, a request for the purpose should be addressed to the above office. 8.The BIR Data Processing Center upon receipt of the original accomplished TAN sheets shall process the papers and include these in the BIR TAN Master File. The permanent TAN of those given temporary numbers shall be verified and the rural bank informed accordingly as in No. 3 above. 9.Problems or questions on this matter shall be addressed to the Data Processing Center with address given in No. 7 above. aisa dc MISAEL P. VERA Commissioner of Internal Revenue