Procedure in Processing Tax Returns, Documents and Tax Payment Acceptance Orders in Relation to the Payment of Internal Revenue Taxes Through Authorized Agent Banks in the Cities and Municipalities Enumerated in Central Bank Circular No. 336, Series of 1971

January 26, 1972 REVENUE MEMORANDUM ORDER NO. 03-72 SUBJECT : Procedure in Processing Tax Returns, Documents and Tax Payment Acceptance Orders in Relation to the Payment of Internal Revenue Taxes Through Authorized Agent Banks in the Cities and Municipalities Enumerated in Central Bank Circular No. 336, Series of 1971 TO : All Internal Revenue Officers and Others Concerned In order to achieve proper, coordinated and effective implementation of Executive Order No. 206 dated January 9, 1970 directing the Central Bank to receive payment of internal revenue taxes through the banking system, as amended by Executive Order No. 309 dated September 9, 1971 and implemented by Central Bank Circular No. 335 and 336, series of 1971, there is prescribed hereunder the procedures to be followed: I. Internal revenue taxes to be paid through authorized agent banks A. Income taxes, including withholding taxes on wages; B. Estate, inheritance and gift taxes; C. Percentage taxes prescribed in Title V of the National Internal Revenue Code, except percentage taxes arising from imports; D. Taxes on banks, taxes on insurance companies, franchise taxes and taxes on amusements; E. Specific taxes; F. Mining taxes; G. Charges on Forest Product; and H. Sugar Adjustment Taxes; II. Cities and municipalities affected by Central Bank Circular No. 336, series of 1971 Region City or Municipality 1 Baguio City San Fernando, La Union 2 Aparri, Cagayan 3 Dagupan City Tarlac, Tarlac Paniqui, Tarlac 4 Olongapo City Angeles City Limay Bataan San Fernando, Pampanga 5 Baliuag, Bulacan Meycauayan, Bulacan Valenzuela, Bulacan 6 Taguig, Rizal Las Pias, Rizal 9 Batangas City San Pablo City Calamba, Laguna Tanauan, Batangas 10 Lucena City 11 Naga City Jose Panganiban, Cam. Norte 12 Ormoc City Tacloban City 13 Lapu-lapu City Mandawe City Toledo City 14 Dumaguete City Binalbagan, Negros Occ. Cadiz City Silay City San Carlos City, Negros Occ. Victorias, Negros Occ. 15 Roxas City Iloilo City 16 Butuan City Bislig, Surigao del Norte 17 Cagayan de Oro City Iligan City 19 Cotabato City Palomaloc, Cotabato General Santos City 20 Zamboanga City Basilan City III. Procedure of procurement, issuance, processing and accounting of Tax Payment Acceptance Order (TPAO) A. Accountable Forms Division 1. All Tax Payment Acceptance Orders should be requisitioned by the Chief of the Collection Branch of the Regional Office where the aforementioned cities and municipalities are located from the Accountable Forms Division in quantities as may be needed. 2. When issuing booklets of TPAO to the Chief, Collection Branch the Accountable Forms Division should always furnish simultaneously the Data Processing Center of the National Office as well as the Assessment Branch of the Regional Office concerned with listings of TPAO's issued showing inclusive numbers thereof and date of issue. 3. At the start of the operation and in order to facilitate the payment of internal revenue taxes through the banks in the said cities and municipalities, blank forms of TPAO's will be issued direct to the Collection Agent concerned or if they are not immediately available, to the Chief of the Collection Branch. cd B. Collection Agent and other officers authorized to issue TPAO 1. Whenever a tax return, demand letter, assessment notice, or other basic document concerning taxes enumerated in Executive Order No. 206 is presented for payment, prepare legibly a set of TPAO in quintuplicate in favor of an authorized agent bank of the taxpayer's choice. To facilitate the issuance of TPAO's, the personnel preparing them need not write the amount to be paid in words on the space provided. Only the amount in figures should be written in the space provided for the figures. All other blanks in the form should be properly filled. Indicate the assessment or demand number on the lower left-hand corner of the TPAO. 2. Do not fail to indicate the due date. If the due date falls on a Saturday, Sunday or a legal holiday, the date to be indicated on the blank provided should be the date of the next business day. 3. Imprint the stamp of your office on the face of the basic document and annotate thereon the TPAO number, date and amount involved. Precede the number of the TPAO by "TP" to distinguish it from Official Receipt number. If no basic document was presented by the taxpayer, write on the face of the TPAO the following: "NO BASIC DOCUMENT PRESENTED". 4. Give the taxpayer his file copy of the basic document as in the case of the tax return, as well as the original , triplicate and quadruplicate copies of the TPAO. Retain the quintuplicate copy as your file copy. 5. Inform the taxpayer that he should now proceed to the bank he had selected to make the payment. He should surrender to the bank upon payment the original (white copy) and the triplicate (blue copy) of the TPAO. The quadruplicate copy should be retained by the taxpayer as his file copy. 6. Staple the duplicate copy of the TPAO to the upper left corner of the corresponding office copy/s of the basic document. Bundle them in batches of fifty or less depending on the quantity issued in a day (pertaining to a particular booklet), numerical in sequence according to TPAO numbers. Prepare a TPAO/Document Block Control Sheet (Exhibit A) in quadruplicate and indicate after each number (corresponding to TPAO No.) the kind of tax for which the same was issued. Attach to the bundle the original, duplicate and triplicate copies of the block control sheet and retain in your file the quadruplicate copy. Accomplish the summary indicated in the lower left hand side of the block control sheet. Transmit the bundles weekly to the Assessment Branch of the region having jurisdiction over you. 7. Cancelled TPAO's should be so indicated by placing the word "cancelled" after the corresponding number on the block control sheet. The original, duplicate, triplicate and quadruplicate copies of all cancelled TPAO's should be included in the bundle of TPAO duplicate copies attached to the basic documents for transmittal to the Assessment Branch. Retain the quintuplicate copy of the cancelled TPAO as your file. 8. When quarterly withholding tax returns (BIR Form W-1) presented for payment covers a bigger amount that the remittance to be made, this will normally mean that monthly payments were made. In cases like this, request for official receipts of such monthly payments made, annotate the pertinent data at the reverse side of Form W-1 and sign it. Return the receipts for the monthly payments to the taxpayer. C. Assessment Branch 1. Check completeness of TPAO copies as well as accompanying documents which may be a tax return, demand letter or assessment notice. Check also correctness of annotations on basic documents. The taxpayer account number should be indicated on all basic documents and TPAO'S. 2. Arrange the block control sheets received during the week in accordance with the numerical sequence of the TPAO. Number all block control sheets sequentially beginning with No. 001 every month. Indicate the number of the region, the month and the year. Example: The first TPAO/Document Block Control Sheet to be numbered in the Assessment Branch of Revenue Region No. 7, North Manila, in October of this year shall be numbered thus 7-10-001-70 7 represents the number of the region, 10 stands for the month of October, 001 is the serial number of the block control sheet, and 70 indicates the year. 3. Retain and maintain a complete file of original copies of TPAO/Document Block Control Sheets. 4. Detach the duplicate copies of TPAO's from basic documents and transmit weekly to the Data Processing Center together with duplicate copy of the TPAO/Document Block Control Sheet. At the same time submit to the Office of the Assistant to the Commissioner the triplicate copy of the TPAO/Document Block Control Sheet. 5. Segregate basic documents according to kind of tax and process them in accordance with existing procedures. For the purpose of sending reminders for 2nd installment payments, the amounts covered by TPAO's as annotated on the basic documents shall be tentatively considered payments for the 1st installment. 6. Keep a control register of TPAO's issued to Collection Branches in the region using as basis the listings furnished by the Accountable Forms Division, and periodically post issued numbers as reflected in the TPAO/Document Block Control Sheets. 7. Any discrepancy detected in paragraphs (1) and (6) hereof shall immediately be resolved and reported to the National Office. D. Collection Branch 1. Requisition from the Accountable Forms Division blank TPAO's. 2. Distribute blank forms of TPAO's to collection agents and such other officers of the Regional Office or Revenue District Office that may be authorized by the Regional Director to issue TPAO. 3. Maintain an inventory of TPAO's received from the Accountable Forms Division and issuances to the different officials authorized to issue. 4. Reconcile the pink copy of the receipts with the daily report of collections to determine any differences; if there are any, the attention of the Central Bank Regional Office in the locality should be called. E. Office of the Assistant to the Commissioner 1. Distribute the following documents: (a) daily summary of collections the Chief, Accounting Division who shall be the custodian thereof; (b) duplicate copies of official receipts to the Data Processing Center, furnishing as well the total thereof per daily summary of collections. 2. Initiate the investigation of the following: (a) discrepancies detected by Data Processing Center in matching payment data gathered from duplicate copies of official receipts against those extracted from TPAO's; (b) discrepancies detected by the Chief, Accounting Division in matching monthly totals of daily summary of collections of authorized agent banks against the monthly summary of collections prepared by the Data Processing Center; and (c) unresolved discrepancies forwarded by regional offices. 3. Maintain records of collections of internal revenue taxes thru the banks. 4. Supervise the procedure of paying taxes thru the banks in the cities and municipalities above-mentioned. F. Data Processing Center 1. Process TPAO's by extracting all pertinent data shown thereon. 2. Extract pertinent data from the duplicate copies of official receipts issued by authorized agent banks. 3. Data in no. 2 hereof, more particularly TPAO No. and amount shall be matched against those in no. 1 hereof for the purpose of detecting discrepancies. Any discrepancy that cannot be resolved shall be reported immediately to the Assistant to the Commissioner for appropriate action. 4. A monthly summary of collections by kind of tax and agent banks including branches shall be prepared out of data extracted in no. 2 hereof and furnished the Chief, Accounting Division. The data on collection by banks should include a summary of collection of banks in every city or municipality covered by this order. 5. In processing quarterly withholding tax returns (BIR Form W-1) monthly payments indicated on the reverse side of the form shall likewise be verified as to correctness. G. Accounting Division 1. Reconcile monthly totals of daily summary of collection as reported by agent banks against the total of monthly summary of collections prepared by the Data Processing Center. 2. Utilize the monthly summary of collections by kind of tax and agent banks furnished by Data Processing Center as source of accounting entries. Strict compliance of this Order is hereby enjoined. MISAEL P. VERA Commissioner of Internal Revenue EXHIBIT "A" Block No. (To be filled in by the Assessment Branch) TAX PAYMENT ACCEPTANCE ORDER & DOCUMENT BLOCK CONTROL SHEET [Serial Nos.:] TPAO Number Kind of Tax TPAO Number Kind of Tax __01 ____ 51________________ __26 _____ 76 _________________ __02 ____ 52________________ __27 _____ 77 _________________ __03 ____ 53________________ __28 _____ 78 _________________ __04 ____ 54________________ __29 _____ 79 _________________ __05 ____ 55________________ __30 _____ 80 _________________ __06 ____ 56________________ __31 _____ 81 _________________ __07 ____ 57________________ __32 _____ 82 _________________ __08 ____ 58________________ __33 _____ 83 _________________ __09 ____ 59________________ __34 _____ 84 _________________ __10 ____ 60________________ __35 _____ 85 _________________ __11 ____ 61________________ __36 _____ 86 _________________ __12 ____ 62________________ __37 _____ 87 _________________ __13 ____ 63________________ __38 _____ 88 _________________ __14 ____ 64________________ __39 _____ 89 _________________ __15 ____ 65________________ __40 _____ 90 _________________ __16 ____ 66________________ __41 _____ 91 _________________ __17 ____ 67________________ __42 _____ 92 _________________ __18 ____ 68________________ __43 _____ 93 _________________ __19 ____ 69________________ __44 _____ 94 _________________ __20 ____ 70________________ __45 _____ 95 _________________ __21 ____ 71________________ __46 _____ 96 _________________ __22 ____ 72________________ __47 _____ 97 _________________ __23 ____ 73________________ __48 _____ 98 _________________ __24 ____ 74________________ __49 _____ 99 _________________ __25 ____ 75________________ __40 _____ 00 ________________ SUMMARY: ISSUED : Nos.________________ CANCELLED : Nos.________________ UNISSUED : Nos.________________ Received by: CERTIFIED CORRECT: ____________________ ______________________________ Receiving Officer Signature ____________________ ___________________________________ Date PRINTED NAME OF ISSUING OFFICER