Collection of Delinquent Accounts for Regions Other Than Revenue 6, 7 and 8

January 11, 1968 REVENUE MEMORANDUM ORDER NO. 03-68 SUBJECT : Collection of Delinquent Accounts for Regions Other Than Revenue 6, 7 and 8 The alarming large number of delinquent accounts in the books of the Bureau of Internal Revenue has always been a nagging problem. Many campaigns have been launched to reduce at least the delinquent accounts to a comfortable minimum but these efforts were always thwarted by a number of factors. The many disasters specially typhoons that have befallen the country for the last few months will have a great effect on the taxes that we expect to collect. To rely on the usual course in the payment of taxes, this Office will not be able to collect the estimated collection goals that have been set. The only source that we can tap now to increase collections is the delinquent tax accounts. It may be stated that revenue personnel were recently granted 50% salary increases based on Republic Act 4900; this would therefor give incentive to revenue personnel to work harder. There would be no reason therefore why this campaign cannot be a success. A separate order (Revenue Memorandum Order No. 78-67, dated November 20, 1967) has been issued Revenue Regions 6, 7, and 8. About eighty per cent (80%) of all uncollected accounts are in these regions. For the purpose of establishing program and a set of procedures relative to the Collection of delinquent accounts in revenue regions other than Revenue Regions 6, 7 and 8; of setting up policy guidelines relating to said campaign; of pinpointing objectives; and of defining, fixing and re-stating responsibilities so as to reduce delinquent accounts to the minimum by removing from the list accounts which have been settled and by convincing or compelling taxpayers to settle accounts still outstanding, this Order is issued. I . POLICY STATEMENTS A. Performance in this delinquent accounts campaign of all revenue officials and employees shall be used as one of the main factors in the assignment, reassignment or advancement of the personnel concerned. The record of such performance will be a part of their personnel file and shall be used for rating performance. B. During the campaign, applications for leaves of absences by employees or fieldmen assigned to the campaign will be subject to approval by the Deputy Commissioner of Internal Revenue. A fieldman reporting for duty after a vacation or sick leave will not be issued letters of authority to investigate, unless he completes his work quota on delinquent accounts. C. No letters of authority to investigate will be issued to a fieldman unless he has completed work on the quota of delinquent accounts assigned to him. D. The service or execution of WDL or the use of other summary remedies shall not be suspended or stopped except in highly meritorious cases. E. All office audit personnel in the assessment branches shall devote at least one half day of every working day during the campaign to perform office collection work. F. Action on protested cases must be expedited at all operational levels. II . SCOPE This campaign shall involve the collection of taxes listed in the delinquent account list as of July 1, 1967. The campaign shall be conducted in 4 phases: 1. Updating of the delinquent accounts list to identify and eliminate accounts which are already paid. 2. Office collection work on accounts that can be settled through the use of the telephone or letters. 3. Actual field collection work by revenue personnel. 4. Maintenance of the system so as to preclude recurrence of the problem. The Regional Directors shall analyze their respective delinquent accounts lists and their office work loads and set up time schedules for the four (4) phases above. The first three phases may overlap. However, extreme care must be taken that actual contact with the taxpayer will not be undertaken unless it is clear that the collectible accounts as listed an actually due the government. LLphil III . RESPONSIBILITIES A. Revenue Operations Head (Collection) The Revenue Operations Head (Collection) shall be: 1) Responsible for the over-all supervision and coordination of all activities relative to the campaign and shall exercise technical supervision over all field component units and personnel involved in the campaign. B. Revenue Operations Head (Management Planning) The Revenue Operations Head (Management Planning) shall: 1) Be responsible for developing procedures and controls and for maintaining continuous evaluation of national and field office performance. 2) Cause verification of accounts reported as paid. 3) Set aside sufficient funds to support the expenses that this campaign will incur. 4) Furnish the Revenue Operations Head (Collection) approved schedules of operations for this campaign of regional directors. C. National Task Force on Collection The National Task Force on Collection created under Revenue Memorandum Order No. 78-67 shall also be the action and implementing arm of the Collection Department. It shall exercise the same functions and have the same responsibilities. D. Performance Evaluation Team The Performance Evaluation Team created under Revenue Memorandum Order No. 78-67 shall also act as management control arm of the Revenue Operations Head (Management Planning) in this campaign. The team shall exercise the same functions and have the same responsibilities. E. National Special Enforcement Team The National Special Enforcement Team created under Revenue Memorandum Order No. 78-67 shall also act as the collection enforcement arm of the National Task Force on Collection. It shall exercise the same functions and have the same responsibilities. F. Data Processing Center 1) Prepare and send expeditiously to the region concerned Statement of Accounts corresponding to each delinquent account. 2) Call attention of any official concerned to inaccuracies or errors in input documents. 3) Refer to the National Task Force and the Performance Evaluation Team any significant problem or matter involving or affecting the collection campaign. 4) Send regularly to the Revenue Operations Head (Collection) a list of collection agents who have not submitted the required reports. G. Regional Directors The regional directors concerned are hereby directed to give their utmost attention and concern to the following duties and responsibilities: 1) Regional Directors are primarily responsible for the success of the campaign in their respective areas. Specifically: a) to collect the delinquent accounts in the region b) To update and purify the lists and records relative to said delinquent accounts. 2) Personally direct and coordinate all activities relating to the campaign. 3) Mobilize personnel under his jurisdiction to insure the success of the campaign. 4) Act expeditiously and decisively on all matters or problems falling within his authority. 5) Refer without delay to the National Office all matters or problems relative to the campaign which fall outside of his authority or competence to act upon, and follow up actions or decision of the same. 6) Implement without delay all actions, decisions or orders emanating from the National Office. 7) Make constant on the spot evaluation and follow-up of the performance of all component units and personnel in his region. 8) Submit a fortnightly report on the progress and status of the campaign. 9) Recommend to the Commissioner of Internal Revenue for commendation or incentive award any outstanding performance of any personnel or component unit in his region. 10) Recommend without delay to the Commissioner of Internal Revenue any disciplinary action against any personnel relative to the campaign. 11) Schedule the different phases of the campaign depending on the personnel, work, and delinquent accounts analysis factors of the region. This time schedule shall be submitted to the Revenue Operations Head (Management Planning) for approval. H. Chief, Collection Branch 1) Exercise immediate supervision and control over all activities relative to the collection of delinquent accounts and the updating and correction of all lists and records relating to said delinquent accounts. 2) Set up a daily statistical chart on the progress and status of the campaign in the region. 3) Maintain efficiently the established controls and reporting system. 4) Inform the Regional Director immediately about any significant action, matter or decision. 5) Submit periodic reports to the Regional Director on the progress and status of the campaign. 6) Act decisively and expeditiously on any matter or problem relative to the campaign falling within his authority 7) Refer to the Regional Director any matter or problem, relative to the campaign which falls outside of his authority or competence. I. Regional Special Enforcement Team Every Regional Director shall designate a Regional Special Enforcement Team composed of seizure agents and related personnel. The following shall be the team's functions: 1) Assume responsibility for all collection enforcement actions within the region against tax cases, except those involving P100,000.00 or above. The Regional Special Enforcement Team may be authorized by the Regional Director to assist the National Special Enforcement Team in enforcement work, upon request of the latter. 2) Coordinate its function with the Tax Accounts Division, Legal Department, the assessment, legal, and administrative branches in the region concerned, and with the other government enforcement agencies. 3) Submit fortnightly progress report on its collection enforcement activities to the Regional Director, thru the Chief, Collection Branch. 4) Report immediately to the Chief, Collection Branch, any significant action, decision, problem or development involving or affecting its collection enforcement work. 5) Actions and responsibilities with respect to seized, levied or garnished property arising from collection enforcement work shall conform to policies and procedures established by Revenue Memorandum Order 20-66. J. Revenue District Officers 1) Assume full responsibility for the performance of collection and assessment personnel under him, assigned to perform office or field collection work. 2) Submit required reports to offices concerned. 3) Act expeditiously or decisively on any matter or problem falling within his authority. 4) Refer immediately to the Regional Director any matter or problem involving or affecting Operations Delinquent Accounts, not falling within his authority to decide. 5) Maintain the controls and reporting system relative to the campaign. 6) Maintain statistical charts on performance progress and status, insofar as the participation of his district is concerned. 7) Refer immediately to the Regional Director any disciplinary action due to be taken against any personnel under his authority. 8) Recommend to the Regional Director the commendation or giving incentive awards to any personnel under his authority, for outstanding performance. 9) Make instant on the spot evaluation and follow-up action on the performance of any component unit or personnel under him. K. Group Supervisors (Assessment Fieldmen) 1) Exercise immediate control and supervision over assessment personnel assigned under him to perform field collection work. 2) Submit to offices or units concerned the required reports. 3) Maintain individual records of performance of each fieldmen under him and submit reports thereof to the Office of the Revenue District Officer and the Chief, Collection Branch. Follow-up and make constant on-the-spot check on the performance and action of fieldmen under him. 4) Report immediately to the Revenue District Officer any significant matter or problem involving or affecting the campaign in his jurisdiction. 5) Act expeditiously on any matter or problem falling within his authority. 6) Refer to the Revenue District Officer, (copy furnished the Chief, Collection Branch), any matter or problem of importance not falling within his authority. 7) Recommend to the Revenue District Officer, disciplinary action against any personnel under him not discharging his responsibilities. 8) Recommend to the Revenue District Officer, for commendation or incentive award, any personnel giving outstanding performance relative to the campaign. IV . GENERAL CLAUSE A. Special units created in this Order shall exist and function only for the duration of the campaign, unless so specified in subsequent orders. B. Procedures and other instructions shall be subsequently issued and shall form part of this general order. C. Any order or provisions of orders in conflict with this Order are hereby revoked or amended accordingly. D. This Order shall take effect immediately. aisadc MISAEL P. VERA Commissioner of Internal Revenue