Revised Procedures in the Receipt of Tax Returns/Documents and Issuance of Revenue Tax Receipts for Payment of Internal Revenue Taxes Through Authorized Agent Banks

January 20, 1982 REVENUE MEMORANDUM ORDER NO. 03-82 SUBJECT : Revised Procedures in the Receipt of Tax Returns/Documents and Issuance of Revenue Tax Receipts for Payment of Internal Revenue Taxes Through Authorized Agent Banks TO : All Internal Revenue Officers and All Others Concerned Executive Order No. 206, dated January 9, 1970 as amended by Letter of Instructions No. 497 dated January 21, 1977 authorized the Central Bank of the Philippines (Central Bank), the Ministry of Finance (MF) and the Bureau of Internal Revenue (BIR) to set up an effective system of collecting internal revenue taxes through authorized agent banks (AABs). Pursuant to said authority, the Governor of the Central Bank in consultation with the Ministry of Finance and the BIR, issued Circular No. 844 dated Jan. 29, 1982, revising the system of monitoring tax collections through AABs. In order to effect the changes prescribed in Central Bank Circular No. 844, existing procedures in the BIR are hereby revised for the guidance and compliance by all concerned. cd i I. General Procedures A. The Bureau of Internal Revenue shall issue a Revenue Tax Receipt (RTR) addressed to an authorized agent bank, directing it to accept a tax payment. B. Authorized agent banks shall issue a Confirmation Receipt (CR) to acknowledge that a tax payment was duly received. C. The Revenue Tax Receipt (RTR) is issued in sets of five (5) copies, distributed as follows: Original ) Duplicate ) - BIR copies Quintuplicate ) (card texture) Triplicate - Agent Bank's copy Quadruplicate - Taxpayer's copy D. The Confirmation Receipt (CR) is issued in sets of five (5) copies which shall be attached to the Revenue Tax Receipt (RTR) as follows: Original - (Taxpayer's copy) to be attached to the quadruplicate copy of the RTR Duplicate - (BIR copy) to be attached to the original copy of the RTR Triplicate - (BIR copy) to be attached to the duplicate copy of Abstract of Daily Collections of Internal Revenue Taxes (RC Form 82-002) Quadruplicate - (BIR copy) to be attached to the triplicate copy of the Abstract of Collections of Internal Revenue Taxes (RC Form 82-002) Quintuplicate - AAB's file copy E. BIR is responsible for the printing, distribution and control of RTRs and CRs. F. The Accountable Forms Division of the BIR shall have custody and control of booklets of Unissued RTRs and CRs. G. RTR booklets shall be issued by the BIR to its issuing offices in the National Office and the Revenue Regions. H. CR booklets shall be issued by the BIR to Head Offices of AABs which offices shall distribute the same to its branches/extension offices/agencies. I. The following internal revenue taxes are payable to the Central Bank through its authorized agent banks: 1. Income taxes, including Withholding taxes on wages and at source; 2. Estate and Donor's taxes; 3. Specific taxes; 4. Fixed taxes on business; 5. Percentage taxes prescribed in Title V of the National Internal Revenue Code except percentage taxes arising from imports; 6. Documentary stamp tax in amounts of P10.00 and above except those loaded in the metering machines; 7. Taxes on banks, taxes on finance companies, taxes on insurance companies, franchise taxes; 8. Tax on winnings and amusement taxes except those transferred to local governments; 9. Charges on forest products; 10. Mining taxes; 11. Firearms tax; 12. Tobacco inspection fees; 13. Sugar adjustment taxes; and 14. Overseas communication tax J. All cities and municipalities where there are commercial, savings and mortgage banks, stock savings and loan associations, private development banks with Demand Deposit accounts with Central Bank and specialized government banks (Development Bank of the Philippines, Land Bank of the Philippines and Philippine Amanah Bank) and any of their branches/extension offices/agencies are covered by this procedure. K. The Collection Agent or any designated RTR Issuing Officer shall issue RTRs to taxpayers only upon presentation of a tax return, an assessment notice or a demand later or an Authority to Issue RTR, a Dummy Sheet, or any communication issued by the BIR for the correction/payment of taxes. L. The Commissioner of Internal Revenue in the Central Office and the Regional Director in the revenue regions may authorize internal revenue officers other than the Collection Agent to issue RTRs whenever necessary. M. The Collection Office shall provide the revenue regions with the list of banks designated by the Central Bank to receive tax payments in each city or municipality. N. All RTRs in one booklet are to be issued for presentation to only one authorized agent bank or any one of its branches/extension offices/agencies. However, RTRs to be issued for payments through the debit system to one or more AABs located beyond the jurisdiction of the RDO shall be taken from a separate booklet assigned for the purpose. II. Procedure in the procurement and issuance of Revenue Tax Receipts and Confirmation Receipts . A. The offices involved in the procurement and issuance of RTRs and CRs under this new system are enumerated hereunder: 1. The Accountable Forms Division shall: a. take charge of the printing of RTRs and CRs and shall act as custodian thereof; b. insure the availability of RTRs and CRs at all times; casia c. issue booklets of RTRs to authorized Offices or Officials only upon presentation of a duly approved requisition, by the Regional Director for those to be issued in Revenue Regional Offices, or by the Revenue Service Chief, Collection Office, for those issued by offices in the Central Office; d. issue CR booklets to head offices of AABs upon presentation of their requisition form approved by the Collection Office; e. furnish simultaneously the Collection Office, the Inspection Service (Fiscal Control Division), and the Regional Director concerned (Attention: Collection Branch) with a listing of the RTR booklets issued to authorized offices indicating therein the inclusive serial numbers and the date of issue, everytime RTR booklets are distributed; and f. furnish simultaneously the Collection Office and Inspection Service (Fiscal Control Division) with a copy of the requisition and issue voucher on Confirmation Receipts issued to AABs' head offices. 2. The Collection Office shall: a. process and approve requisitions for CRs submitted by head offices of AABs in accordance with established guidelines and criteria; b. monitor the distribution of RTRs and CRs; c. receive and process reports of head offices of AABs on their distribution of CRs to their respective branches/extension offices/agencies; and d. receive and process reports of Administrative Branches on their distribution of RTR booklets to issuing offices in the Revenue Regions and the offices in the National Office. 3. The Administrative Branch shall: a. requisition RTR booklets from the Accountable Forms Division and shall act as custodian of the same in the Regional Offices; b. issue booklets of RTRs to the Revenue District Collection Supervisors upon presentation of a requisition duly approved by the Revenue District Officer; c. take responsibility for the availability of sufficient booklets of RTRs at all times in Revenue Regional Offices; d. render a monthly report to the Chief, Accountable Forms Division, the distribution of RTR booklets using BIR Form 806, copies furnished the Chief, Collection Office, Chief, Fiscal Control Division and Chief, Collection Branch of the Revenue Region; cd i e. file all copies of cancelled RTRs received from the Assessment Branch, to be disposed of later under procedures prescribed for disposal of accountable forms; and f. render a monthly report to the Accountable Forms Division, copy furnished the Collection Office, on cancelled RTRs received during the month stating their serial numbers therein. 4. Collection Unit/Other Offices authorized to Issue Revenue Tax Receipts: The head of the Collection Unit or of other offices authorized to issue RTRs shall be responsible for the efficient implementation of the procedures on the custody, issuance and control of RTRs. He shall see to it that all RTRs in a booklet and all booklets issued to his office are properly accounted for. Likewise, he shall insure the accurate preparation and prompt submission of required reports by personnel under his supervision who are involved in the issuance of RTRs. Conversely, all designated RTR Issuing Officers shall be responsible to their respective heads of Units for all RTRs issued to them, and for adherence to the procedures prescribed in this Order. The Collection Agent or any designated RTR Issuing Officer under his supervision and control shall: a. brief the taxpayer on the following points before preparing an RTR: (1) the RTR can only be presented for payment to the bank indicated therein; (2) the CR shall be issued by the bank upon payment of the amount of tax indicated in the RTR as an acknowledgment of the receipt of payment; (3) one check for payment of the tax liabilities of more than one taxpayer will not be accepted; however, one check for the payment of tax liabilities of the same taxpayer may be accepted; (4) full payment for one RTR should be either in cash or in check; payment partly in cash and partly in check for one RTR will not be accepted by the agent banks; (5) post dated checks are not accepted; (6) payment of documentary stamps in amounts of more than P10.00 and of cigarette strip stamps in any amount, if by check, shall be in Certified or Manager's checks; (7) tax payments in amounts of P20,000.00 or more may be made thru advice by the taxpayer to his bank to debit his account for the amount of the tax; casia (8) if the taxpayer avails of the debit system as a mode of tax payment, the AABs shall issue the corresponding CR upon receipt of the RTR and the taxpayer's debit advice and shall indicate in space No. 12 of the CR the phrase "Account Debited". b. Prepare a set of RTRs addressed to an AAB as specified by the taxpayer, regardless of the bank's location, in cases where the taxpayer avails of the debit system. c. Issue an RTR for the balance of the tax due (after deducting the tax credit) in cases where a Tax Credit Memo (TCM) is used for payment and the amount indicated therein is less than the tax liability. If the amount indicated on the TCM is equal to or greater than the tax liability, no RTR shall be issued. Refer the TCM with the basic documents to the Collection Office for processing. d. always use a typewriter in preparing RTRs to insure legibility of all copies; e. Fill in items 1 up to 22 only; item 23 shall be filled in by the bank; f. observe strictly the guidelines for accomplishing the RTR set forth in Appendix A of this Order; g. indicate in item 22, the phrase "Issued after 4:00 o'clock P.M." if the RTR is issued after the close of banking hours to enable the taxpayer to pay his tax liability up to twelve o'clock noon of the following business day without penalties; h. imprint the stamp of his office on the face of the basic documents submitted (including the attachments) and annotate on the spaces provided, the RTR number, date of issue, and amount to be paid; i. give the taxpayer his file copy of the tax return or document and the original, triplicate and quadruplicate copies of the RTR; cd j. retain the duplicate and Card (quintuplicate copies) of the RTR for transmittal direct to the Reconciliation Officer; k. bundle the documents, arranged in the numerical sequence of RTRs issued during the day and regardless of whether or not all the RTRs in the booklet were issued, prepare the Daily List of RTRs Issued on BIR Form 809 hereinafter referred to as the List; l. properly accomplish in quadruplicate the List using as basis the quintuplicate (Card) copy of the RTR. In case of a cancelled RTR, indicate the word "CANCELLED" opposite the number under the column "Name of Taxpayer"; m. type in capital letters at the left hand side of all copies of the List the phrase "DEBIT SYSTEM-BANK OUTSIDE THIS DISTRICT" if the addressee bank is located beyond the territorial jurisdiction of the issuing officer; n. transmit the duplicate and quintuplicate (card) copies of the RTRs issued during the day, with the corresponding original copy of the List to the Reconciliation Officer the following day, regardless of whether or not the addressee bank is located within the jurisdiction of the RTR issuing office; o. accomplish the Daily List of RTRs Issued to Banks Outside the District of the Issuing Office Form 809-A (List A) in triplicate, copies of which shall be distributed as follows: Original Reconciliation Officer of the and District Office Duplicate where the bank is located Triplicate file copy of issuing officer; p. transmit the duplicate copy of the List (BIR Form 809) with the basic documents received and the complete set of all cancelled RTRs to the Assessment Branch simultaneously with the transmittal of the original copy of the List (BIR Form 809) and the duplicate and quintuplicate (card) copies of the RTR to the Reconciliation Officer; In the case of RTR Issuing Officers in the Receivable Accounts Division, transmit the documents referred to in the preceding paragraph to the National Assessment Office and the Reconciliation Unit of the Division. q. forward the triplicate copy of the List (BIR Form 809) to the Revenue District Officer; The receipt Issuing Officers in the Central Office, shall forward the same to the Revenue Service Chief (Collection). r. retain the quadruplicate as his file copy; and s. render a monthly report to the Regional Director (Attn: Chief, Administrative Branch) on the RTR booklets received, issued and still unissued, on BIR Form 806 by summarizing the individual report rendered by all RTR Issuing Officers under him; furnish the Fiscal Control Division and the Collection Branch with a copy of this report. The Receivable Accounts Division shall furnish the Collection Office with a copy of the report. III. Processing and Control of Revenue Tax Receipts and Confirmation Receipts Issued and Documents Received from the Collection Agents and Other Authorized Receipt Issuing Officers and Authorized Agent Banks . The offices and/or units involved in the processing of RTRs issued and basic documents received are enumerated hereunder with a definition of their respective functions and responsibilities. cd i A. Revenue District Officer or Head of Office authorized to issue RTR Where the Collection Unit is under the supervision and control of the Revenue District Officer and during periods when the volume of tax payments received is so big that revenue examiners and other qualified personnel are authorized to issue RTRs, the Revenue District Officer or any head of office authorized to issue RTRs shall: 1. supervise the preparation of the list (BIR Form 809) by the RTR Issuing Officers in his district or office; 2. be responsible for the proper transmittal by the Issuing Officers of all copies of RTRs Issued, the basic documents received, all copies of cancelled RTRs, and the corresponding copies of the List (BIR Form 809) and List A (BIR Form 809A) in accordance with the procedure set forth in this Order; and 3. account for all the booklets of RTRs issued to his office in BIR Form 806. B. Collection Branch/Collection Office shall: 1. keep and maintain the Control Register for RTRs issued to the Issuing Officers in the Region/National Office using as basis the listing furnished by the Accountable Forms Division and the Administrative Branch; cd 2. post issued RTR numbers as reflected in the duplicate copy of the List (BIR Form 809) received from the Assessment Branch; 3. prepare a monthly report to be submitted to the Regional Director or to the RSC, Collection Office as the case may be, on the RTRs issued to Issuing Offices but which still remain unissued in the Control Register thirty days after the same were received by these offices. Use BIR Form 806A for this purpose; 4. maintain a complete and systematic file of the duplicate copies of the Daily List of RTRs Issued, arranged in numerical sequence by block number; 5. keep and maintain a Control Register for CRs issued to AABs; 6. process reports submitted by head offices of AABs on its distribution of CRs to their respective branches/extension offices/agencies; 7. (For the Collection Office) transmit to the Collection Branches the serial numbers of CRs sent by head offices of AABs to branches/extension offices/agencies within their respective jurisdictions; 8. post CRs issued as shown in RC Form 82-002; and 9. report to the Regional Director or the RSC, Collection Office, as the case may be, who shall act accordingly on any discrepancies noted in any of the Control Registers. C. Assessment Branch/National Assessment Office 1. check the correctness of annotations on basic documents; check completeness and sequence of RTRs issued and compare the List (BIR Form 809) with the accompanying documents, which may be a tax return, demand letter, or assessment notice, or dummy sheet (BIR Form 808) and report to the Regional Director or Revenue Service Chief, Collection Office, as the case may be, any discrepancies noted in the comparison; 2. assign a block number to every List (BIR Form 809) received. The block number shall indicate the region's number, month, serial number, and the year. Begin with No. 001 every month; Example: The first List (BIR Form 809) received in March, 1982 in Revenue Region No. 4-A shall be given the following block number: 4A-3001-82 wherein 4A represents the region 3 the month of March 001 the serial number, and 82 the year 3. transmit to the Collection Branch within five (5) days from date of receipt the List (BIR Form 809) properly numbered; aisa dc 4. sort basic documents according to kind - tax return, assessment notice, demand letters, dummy sheet, Authority to Issue RTR, etc; 5. process all tax returns in accordance with existing procedures; 6. Forward to the Collection Branch (if payment does not exceed P20,000.00) or the Receivable Accounts Division (if payment exceeds P20,000.00) the following documents; a. Dummy sheets - for the purpose of determining the correctness of the payment received and attaching the same to the document or docket involve. b. Assessment notices and/or demand letters for processing and attachment to the corresponding dockets. c. Assessment Notices and/or demand letters on one taxpayer as a result of one investigation and one or more single account amounts to over P20,000.00 (to the Collection Office). 7. forward the Authority to Issue RTR (ATIRTR) to the office or unit which issued the same; and 8. transmit to the Adm. Branch or to the Accountable Forms Division all copies of cancelled RTRs issued in the Regional Office or in the Central Office, respectively, for disposition in accordance with existing procedures. D. Regional Director/Revenue District Officer/Collection Office 1. the Revenue District Officers or the Revenue Service Chief (Collection) shall designate the internal revenue officer who shall gather daily the BIR copies (duplicate and triplicate) of the Abstract of Daily Collection of Internal Revenue Taxes (RC Form 82-002) hereinafter referred to as Abstract, directly from all authorized agent banks (including branches/extension offices/agencies) within his jurisdiction. The Reconciliation Officer or any official or employees assigned to the reconciliation process shall not be designated for this purpose; 2. use the triplicate copies of the List (BIR Form 809) received from the RTR Issuing Officer to check whether or not all Abstracts (RC Form 82-002) have been gathered; 3. transmit the duplicate copy of the Abstract (RC Form 82-002) with the triplicate copies of the listed CRs attached, to the Fiscal Operations Unit and the triplicate copy of the Abstract with the quadruplicate CRs attached, to the Reconciliation Officer; Ask the Reconciliation Officer and the Chief, Fiscal Operations Unit to acknowledge receipt of their copy of the Abstract (RC Form 82-002) with corresponding CRs on the triplicate copy of the List (BIR Form 809). The CB, under its Circular No. ____ has allowed authorized agent banks to submit the Abstracts (RC Form 82-002) on or before the tenth calendar day after date of actual collection to coincide with the remittance of amounts collected. Representatives of the Bureau shall collect these reports daily although the report would be on CRs issued ten or less than ten days before. E. Fiscal Operations Units shall: 1. match the CRs attached against the Abstract, (RC Form 82-002) to determine the correctness of entries therein particularly the amounts collected; 2. tape the amounts entered to ascertain the correctness of the total amount appearing in the Abstract (RC Form 82-002); 3. check with the bank concerned on discrepancies noted; 4. certify to the correctness of the total as verified on the Abstract (RC Form 82-002) and transmit the same weekly to the Accounting Division; and 5. transmit the triplicate copy of the CRs attached to the Abstract to the Data Centers in RRs 4A and 4B and to the Collection Agents for all other regions. F. BIR Collection Unit in the CB Complex The BIR shall maintain a unit in the CB complex to receive reports and supporting documents enumerated hereunder from Head Offices of AABs and distribute the same to designated offices for processing. 1. Consolidated Report on Daily Collections of Internal Revenue Taxes (RC Form 82-001) subsequently referred to as Report . This is an advance daily report of collections accomplished by head offices of each AAB on the total tax collections made by the head office and all its branches/extension offices/agencies throughout the country and the inclusive serial numbers of CRs issued. The original and duplicate copies of this report shall be delivered by messengers of AABs to the BIR unit located in the CB complex the next working day after date of collection. The Unit shall send the report not later than the next working day to the following offices: Original to the Accounting Division Duplicate to the Collection Office 2. Consolidated Abstract of Collections of Internal Revenue Taxes (RC Form 82-003) subsequently referred to as Consolidated Abstract . - This Consolidated Abstract (RC Form 82-003) is prepared by Head Offices of AABs and reflects the consolidation of Abstracts (RC Form 82-002) accomplished by their branches/extension offices/agencies. The duplicate copy of the Consolidated Abstract (RC Form 82-003) with the original copies of the branch/extension office/agency Abstracts (RC Form 82-002) with attachments and the triplicate copy (without attachments) shall be delivered by messengers of head offices of AABs to the BIR Unit, CB complex on or before the tenth calendar day following the date of collection. The copies of Consolidated Abstracts (RC Form 82-003), shall be distributed by the Unit not later than the next working day as follows: a. duplicate copy of the report for collections made by banks in Revenue Region 4-A, Manila with the corresponding attachments to RR 4A's Data Center; b. duplicate copy of the report for collections made in RR 4-B, Quezon City with the corresponding attachments - to Region 4-B's Data Center; c. duplicate copy of the report of collections made in all other regions with the corresponding attachments - to the Data Processing Center, Quezon City; and d. Triplicate copy (without attachments) - to the Accounting Division. 3. Report on Returned/Dishonored Checks (RC Form 82-004) - This is a report on dishonored or returned checks previously reported as collections by AABs. The original copy of this report with the dishonored/returned checks attached thereto, shall be delivered by messengers of AABs to the BIR Unit in the CB complex. The report and the checks attached thereto shall be sent to the Accounting Division of the BIR not later than the following working day. 4. The Unit shall maintain a register for each kind of report received from AABs and subsequently distributed to the BIR offices concerned. The register shall indicate the following: 1) date of receipt; 2) kind of report; 3) number and kind of copies; 4) name of bank; 5) date of report; 6) total amount involved; 7) date transmitted to BIR offices concerned; and 8) to whom transmitted F. Collection Branch/Revenue District Offices/Collection Enforcement/Division 1. The Collection Branch in Revenue Regions No. 4-A, the Revenue District Officers, except those of Revenue District Nos. 22 up to 25 and the Reconciliation Unit in the Receivable Accounts Division shall perform the functions enumerated hereunder with respect to RTRs issued in their respective jurisdictions; 2. The designated Reconciliation Officers shall: a) check the duplicate and quintuplicate copies of the RTR against the List (BIR Form 809); aisa dc b) transmit the duplicate copy to the Data Centers, if the Revenue Region has one; if none, edit and encode the tax numeric code, and transmit to the Data Processing Center within five days from receipt; c) check the quadruplicate copies of CRs against the Abstract; d) attach the quadruplicate CR to the corresponding RTR Card Copy after ascertaining that the name, address, TAN and amount of tax paid in both documents are the same; e) ascertain the RTR number indicated in a CR which has no RTR Card Copy on file, otherwise verify with originating office. If the RTR was issued by another District Office due to taxpayer's availment of the Debit system, transmit the CR to the office that issued the RTR; f) post the CR number opposite the RTR Number under the column provided therefor in the List (BIR Form 809) and on item 20 of the RTR Card Copy previously received from the Issuing Officers; g) check the Recapitulation in the lower portion of the List (BIR Form 809); h) segregate the RTRs without matching CRs. This is an indication that the RTR was not presented to the bank for payment; i) verify from the agent bank if actual payment was made on any RTR without a matching CR one week after the date of issue, except when the deadline for payment of the tax has not passed within that week. If the same was not presented for payment, it becomes a delinquent account; j) list all delinquent RTRs (without matching CRs) issued within the district/region (for RR 4A) in numerical sequence by addressee banks and transmit the list with the RTR card copies to the Revenue District Officer, who shall cause immediate collection of the account; acd k) segregate the BIR Card copy of the RTRs issued to taxpayers whose addresses are not within the jurisdiction of the Regional Office or the Revenue District Office which issued the RTR; l) if the taxpayer's address falls within the same region as the issuing office, forward the BIR card copy directly to the corresponding RDO; otherwise, transmit the same to the respective Revenue Regions after the reconciliation process; forward, also after the reconciliation process, the original copy of List A with the Reconciliation Officer's copy of the CRs securely attached thereto to the Reconciliation Officer of the issuing office. File the duplicate copy; m) retain the BIR Card copy of the RTRs issued within his revenue district in the amounts of P5,000.00 below; transmit to the Collection Branch - RTRs with payments above P5,000.00 but not more than P20,000.00 and transmit to the Receivable Accounts Division RTRs with payments on all assessment notices and demand letters issued in the Central Office, the aggregate amount of which involves P20,000.00 or more; n) transmit to the RDO all RTR Card copies without matching CRs or notations of payment issued by and received from other Districts or Regions, for collection; o) prepare and submit a monthly report of all RTRs issued in the Revenue District which were not presented for payment to AABs as of the end of the month on BIR Forms 12.35 and 12.35-A. This report shall be prepared in two (2) copies the disposition of which are as follows: Original Collection Branch Regional Office Duplicate File copy p) prepare the Weekly Summary of Internal Revenue Collections, BIR Form 12.33. This weekly summary report shall be the basis for preparing the monthly report on BIR Form 12.33A, Monthly Summary of Collections; The monthly report shall be prepared in three (3) copies, to be distributed as follows: Original Collection Service Chief Duplicate Regional Director (Collection Branch) Triplicate File copy q) arrange alphabetically the paid RTR Card copies for reference and statistical purposes. 3. The Revenue District Officer shall : a) prepare a collection letter, on the form prescribed for the purpose, BIR Form 1234, for the signature of the Revenue District Officer or the Revenue Service Chief (Collection), as the case may be, for the collection of delinquent accounts arising from non-payment of RTRs issued, except those where the addressee banks are located beyond his jurisdiction; send also a collection letter (BIR Form 1234) to taxpayers indicated on RTRs received from other Districts and Regions with no CR attached or no CR number indicated in the space provided for the purpose in the RTR Card copy; furnish the Assessment Branch of the Revenue Region or the National Assessment Office in the Central Office with copies of the letters; the amounts demanded in the collection letter which have not been previously set up in the Data Processing Center thru the processing of tax returns or Form 40.00 shall be set up in a separate Form 40.00 by the Assessment Branch or the National Assessment Office as the case may be; b) forward to the Collection Branch of the Revenue Regional Office the Abstracts (RC Form 82-002) after all the numbers of CRs have been posted to the List (BIR Form 809); c) forward the list (BIR Form 809) to the Collection Branch, one month after the date of issue of the RTRs listed therein, whether or not all RTRs in the list have a corresponding CR number posted in the appropriate column; d) continue the collection proceedings on all unpaid RTRs until the account is collected. As soon as collection is effected, advise the Collection Branch and the Reconciliation Officer to cancel the RTR without notations of payment appearing in the List and to annotate the new RTR number if a new one was issued with the corresponding CR number; and e) the instructions in a, b, c, and d above shall also apply to the Collection Enforcement Division except that all reports shall be forwarded to the Collection Office. 4. The Collection Branch/Collection Office shall : a) maintain a systematic file of all Lists (BIR Form 809) and Abstracts (RC Form 82-002) received in the Revenue Regional Office or the Central Office, as the case may be; b) control and update all unpaid RTRs issued in accordance with the following procedures: (1) card all unpaid RTRs issued on BIR Form 10.00 and arrange the same alphabetically by name of taxpayer; (2) post the CR number and all other payment data on the card as soon as the information of payment is received to close the taxpayers account and pull out the card from the file of delinquent RTRs; and (3) program a systematic and consistent follow up of all delinquent accounts arising from non-payment of RTRs issued until the same are collected. (c) collate for the Regional Director all monthly reports on Unvalidated RTRs (BIR Forms 12.35 and 12.35A) and the Monthly Summary of Collections (BIR Form 12-33A) and transmit the same to the proper offices; and (d) prepare a consolidated report on BIR Form 12.35A on the RTRs issued in the Regional Office which were not presented to the banks for payment. This summary report shall also be prepared in three (3) copies and distributed as follows: Original Collection Office Duplicate Regional Director Triplicate File copy This summary report shall be attached to the copies of the monthly reports submitted by the Reconciliation Officers upon transmittal of the same to the proper offices. F. The Data Processing Center/Data Centers shall : 1. take charge of the computerized processing of RTRs and CRs received and generate the following outputs: a) Monthly District Summary of Collections by tax numeric code Collection Office 1 copy Accounting Division 1 copy Statistical Division 1 copy DPC/Data Center 1 copy (File) b) Monthly Overall Alphabetic List of the CRs issued showing the names of taxpayers, amount paid, date paid, RTR and CR numbers and names of banks Accounting Division 1 copy DPC/Data Center 1 copy c) Monthly Summary of Collections by BTR/GFS codes Bureau of Treasury 1 copy DPC/Data Center 1 copy d) Monthly Overall Numeric lists of RTRs and CRs issued Collection Office 1 copy DPC 1 copy e) Annual Overall Alphabetic list of CRs issued showing the names of taxpayers, amount paid, date paid, RTR and CR numbers and names of banks. cd Collection Office 1 copy Accounting Division 1 copy Data Processing Center 1 copy f) Annual Overall list by CR number of CRs issued showing the names of taxpayers, amount paid, date paid and RTR and CR numbers. Collection Office 1 copy Data Processing Center 1 copy g) Annual Regional Alphabetic List of CRs issued showing the names of taxpayers, amount paid, date paid, RTR and CR numbers and names of banks Collection Branch of each Region 1 copy h) Annual District Alphabetic list of CRs issued showing the names of taxpayers, amount paid, date paid and RTR and CR numbers Revenue District Office 1 copy i) Monthly List of unvalidated RTRs by Region Collection Office 1 copy Data Processing Center 1 copy j) List of Unclassified RTRs (with erroneous or without tax numeric code showing the serial number and name of issuing officer. cdt Collection Office 1 copy 2. match/update tax accounts established as receivables against CRs 3. forward to COA the BIR copies of the CRs with the corresponding RTRs duly covered by a transmittal letter showing the inclusive serial numbers of CRs in accordance with the provisions of COA General Circular No. 133 dated September 1, 1975. G. The Accounting Division shall : 1. post by memorandum entry in the subsidiary ledger of AAB Home Office (AABHO) the daily collection thru banks per Report (RC Form 82-001) 2. record by journal entry daily collections reported in the Consolidated Abstract (RC Form 82-003) 3. reconcile the Report (RC Form 82-001) against the Consolidated Abstract (RC Form 82-003). Use the Abstract (RC Form 82-002) as reference in the reconciliation. All reconciling items/differences shall be properly explained and report thereof shall be made to the Supervision and Examination Sector, Central Bank of the Philippines for appropriate action. 4. record monthly in the Journal of Collections and Deposits internal revenue collections by BIR Tax Numeric Codes; 5. record by journal entry amounts of returned/dishonored checks reported in RC Form 82-004; 6. reconcile Bureau of Treasury Statements against BIR current accounts. In the reconciliation utilize the Bureau of Treasury and Central Bank debit and credit advices and the Bureau of Treasury Journal Voucher. 7. file systematically the Final Listing of Daily Summary of National Internal Revenue Collection for record and reference purposes (to service BIR Units/Division/Offices or other government offices that are requesting for Certification of RTR and CR issued for tax refund and verification purposes). H. The Fiscal Control Division shall : 1. check and reconcile reports submitted by Accountable Forms Division, Administrative Branch, Collection Agent, RTR Issuing Officer, and any other office or unit authorized to issue RTRs on the number of RTRs received, issued, and unissued; 2. investigate any discrepancy discovered from the reconciliation of such reports; and 3. include in its monthly report of accomplishments the result of the audit and reconciliation processes undertaken. acd IV. Miscellaneous Procedures A. Procedures to be followed when a taxpayer pays the deficiency tax immediately after investigation even without an assessment notice or letter of demand. 1. In the Revenue Regional Offices a) The investigating units shall prepare an Authority to Issue RTR (ATIRTR) which shall be the basic document for the issuance of an RTR. b) The Collection Agent shall issue an RTR only if the Authority to issue RTR (ATIRTR) is signed by the head of office - the Revenue District Officer, the Chief of the Assessment Branch, the Chief of the Office Audit Section or their duly authorized representatives. 2. In the Central Office a) The Divisions of the Sector Operations and National Assessment Offices and the Tax Fraud Division shall prepare the Authority to Issue RTR (ATIRTR) for the collection of deficiency taxes, including penalties found due upon investigation and which the taxpayer would like to pay even before final approval of the report of investigation. This shall be the basis for the issuance of an RTR; b) the Divisions of the Specific Tax Service shall prepare the Authority to Issue Revenue Tax Receipt for the collection of specific taxes; c) the Divisions of the Collection Office shall issue ATIRTR for the collection of delinquent accounts including interest and penalties; d) All ATIRTRs prepared in the Central Office shall be presented to the Receivable Accounts Division; e) The Receivable Accounts Division shall requisition RTR booklets from the Accountable Forms Division, which requisition shall be approved by the RSC (Collection); f) the Receivable Accounts Division shall issue an RTR only upon presentation of ATIRTR duly signed by the Chief of the Division concerned or his duly authorized representative; g) all the functions of, the guidelines to be followed and reports to be prepared by RTR Issuing Officers as defined in paragraph II-A-3 shall apply to those issuing RTRs in the Receivable Accounts Division; h) the Reconciliation Unit, Receivable Accounts Division shall perform the functions and assume the responsibilities of the Reconciliation Officer prescribed in paragraph III-B-2 for the RTRs authorized to be issued in the Central Office; and i) the functions performed and the responsibilities assumed by the Assessment Branch in the Regional Offices shall be discharged by the National Assessment Office in the Central Office. B. RETURNED/DISHONORED CHECKS 1. The Collection Office shall: a) sort by Regional jurisdiction returned/dishonored checks received from the Accounting Division; b) transmit returned/dishonored checks drawn by taxpayers to the revenue regions having jurisdiction over the taxpayers except those of Revenue Regions 4-A and 4-B; c) institute collection measures immediately in accordance with existing procedures on taxpayers of Revenue Regions 4-A and 4-B who issued the returned/dishonored checks; d) furnish the National Assessment Office with copies of collection letters issued for inclusion in Form 40.00; and e) submit to the Accounting Division a monthly report on all dishonored checks. 2. The Collection Branch in revenue regions other than Regions 4-A and 4-B shall take charge of the collection of delinquent accounts arising from dishonored checks. The branch shall submit to the Accounting Division a monthly report on dishonored checks. C. Lost RTRs The procedure prescribed for the reporting of accountable forms that are lost shall also be applicable to lost RTRs. D. Exception to the issuance of RTRs in Revenue Districts where the RTR System is prescribed - Whenever Revenue District Offices conduct special campaigns in the barrios or sitios which are far from the poblacion or the center of municipalities and cities where the AABs are located, the Revenue Regional Director may authorize the use of Revenue Official Receipts (ROR) (BIR Form 25.24) for tax collections during the campaign. In authorizing the issuance of RORs, the control and security of the collections shall be taken into account. Collections made through RORs shall be reported separately from that received through the RTR System and all requirements under existing accounting and auditing rules and regulations shall be complied with. E. Whenever Revenue District Offices conduct special campaigns in the barrios or sitios which are far from the poblacion or the center of municipalities and cities where the AABs are located, the Revenue Regional Director may authorize the use of Revenue Official Receipts (ROR) (BIR Form 25.24) for tax collections during the campaign. In authorizing the issuance of RORs, the control and security of the collections shall be taken into account. Collections made through RORs shall be reported separately from that received through the RTR System and all requirements under existing accounting and auditing rules and regulations shall be complied with. E. All monthly reports required of participating BIR Units in this Order shall be submitted within twenty (20) days after the end of each month. F. The Revenue Regional Directors shall be held responsible for the efficient implementation of and strict compliance with the provisions of this Revenue Memorandum Order particularly on the timely submission of the required reports. V. Repealing Clause - Provisions of all previous Revenue Memorandum Orders and other issuances which are inconsistent herewith are hereby repealed. VI. Effectivity - This Order takes effect on February 16, 1982. cd i RUBEN B. ANCHETA Acting Commissioner Appendix A RMO NO. 3-82 Guidelines for Filling in the Boxes/Spaces of the RTR : 1. Issue one RTR for each kind of tax for one year or period, or for every assessment notice or demand letter; 2. Enter any date in the RTR indicating first the day of the month in figures followed by the first three letters of the month in words and the last two digits of the year. Example: "15 Nov 81" or "31 Jan 82"; 3. Items 1, 2, & 3 identify the taxpayers; all these data are obtainable from the basic document presented by the taxpayer; See to it that the complete address of the taxpayer is indicated in the RTR; do not accept a P.O. Box Number as a taxpayer's address; 4. Item 4 indicates the total amount of tax due from the taxpayer, which includes the basic tax, surcharge, interest, and compromise penalty, if any. This amount may be bigger than the amount indicated in item 17; 5. Items 5, 10, 12, and 15 shall be filled up with the figures shown in the basic documents presented. IMPORTANT : If payment is made after the due date indicated on a notice of assessment or letter of demand or after the last day for the payment of "self-addressed" taxes, the increments (surcharge, and/or interest, and compromise penalty) must be computed and added to the amounts indicated on the basic documents. If the notice of assessment or demand letter indicates payment of basic tax, surcharge, interest, compromise penalty, itemize all these in the spaces provided therefor and under each of these figures in the same space, indicate the additional surcharge, interest, and compromise penalty computed due to late payment. 6. Item 17 - Pay This Total - This figure is arrived at by adding the amounts entered in items 5, 10, 12, and 15. Immediately after the total amount in figures, indicate in the space provided the same amount in words; 7. If the quarterly withholding tax returns (BIR Form W-1) presented covers a bigger amount than the tender of payment, request for the RTRs of previous monthly payments made of withholding tax on wages; annotate the pertinent data (RTR No. and the corresponding Confirmation Receipt No.) at the reverse side of Form W-1, sign it, and return the RTR with the corresponding Confirmation Receipt to the taxpayer; do not accept incomplete W-1s. Accept payments, regardless of whether or not the W-1 was properly accomplished. Used the Dummy Sheet as a source document. 8. Item (6) - Due Date of Tax - This item pertains to the due date indicated on the assessment notice or letter of demand or the last day for the payment of self-assessed taxes. Example: The income tax due from a salaried individual for the year 1977 is P200.00 only and the last date for his payment is March 15, 1978. Enter "15 Mar 78" in this space. 9. Item 11 - Period Covered - This refers to the period for which the tax is paid. If the tax is payable monthly, indicate the first three letters of the month and the last two digits of the year, in the space after "MONTH" or if quarterly, the number of quarters 1st, 2nd, 3rd, 4th as well as the last two digits of the year. Examples: a) Withholding tax on wages for the month of March, 1982 - typewrite "Mar" opposite the word Month and "82" opposite the word Year . b) Percentage tax for the third quarter of 1982 - typewrite "3rd" opposite the word Quarter and "82" opposite the word Year . 10. Item 16 - Type of Payment a) Indicate in this space "1st" or "2nd" installment, etc. as the case may be, if payment corresponds to an installment of a tax due. Any payment is considered on installment if: (1) Authorized by the provisions of the National Internal Revenue Code as in the case of income tax, if the tax due from an individual is in excess of P2,000.00, the same may be paid in two equal installment; or (2) When the Commissioner of Internal Revenue has approved the request of the taxpayer that his tax liability be paid in installments. b) Indicate "part payment" if the amount being accepted is less than the tax or installment due or that shown or indicated in the basic document, or when the tax has become delinquent and the taxpayer has not provided for penalties and other increments; c) Indicate "Full Payment" if the amount being paid is equal to the tax due per the basic document presented and payment is made on time, or if delinquent, that which includes all increments; d) Indicate "Self-assessed" if the amount being paid is equal to the tax due per return as computed by the taxpayer. Examples of these are the quarterly percentage, corporate quarterly income all other income taxes computed by the taxpayer in his return, etc. 11. Item (7) - Basic Document a) Indicate therein the document presented by the taxpayer. If a return is presented, indicate the form number as shown in the return itself, such as 1701 or 1701A for an individual income tax return, 1702Q for a Quarterly Corporate Income Tax Return, 2529 for Business Percentage Tax Return etc. b) If an assessment notice or a demand letter is presented, indicate "Assessment Notice" or "Demand Letter" as the case may be, the date, and the assessment or demand number in the spaces provided. c) If the basic document presented is a Dummy Sheet (D.S) or an Authority to Issue RTR (ATIRTR), the abbreviation of the name of the document, D.S. or ATIRTR, shall be indicated in the space provided for that item. 12. Item 8 - Kind of Tax - Indicate herein the specific tax being paid, as Income Tax, Withholding Tax on Wages, Withholding Tax at Source, Contractor's Tax, Manufacturer's Tax, Mining Tax, Privilege Tax, Specific Tax on Cigarettes, etc. 13. Item 9 - Tax Numeric Code - Indicate herein the BIR as well as the RTR (Bureau of Treasury)/GFS (Government Financing Statistics) codes. To prevent any error, refer to the Tax Numeric Code of Revenue Sources covered by RMO No. 17-79 dated August 15, 1979. acd 14. Item 13 - BIR Issuing Officer - Typewrite your name, designation, and code number, and affix your signature. Specify your place of assignment as Receipt Issuing Officer by indicating the Region, District, and Municipality codes opposite the corresponding items. Refer to your copy of the listing of the municipalities and cites and their corresponding code numbers. 15. Item 21 - Name and Address of Authorized Agent Bank a) Indicate herein the name, code number, and address of the agent bank assigned to you. Examples: Philippine Commercial and Industrial Bank 020-034 Quezon Boulevard Extension Quezon City b) Be sure to indicate the proper address of the bank and its code number as there may be several branches of the same bank located in different areas of the City or Municipality. Refer to the Listing of Banks with their corresponding code numbers to avoid errors. c) Advise taxpayer to present the RTR only to the bank indicated in this space so that the RTR may not be considered as invalid. 16. Item 19 - Data and Place of Issue - Indicate in this space the date when and the place where the RTR is issued. The corresponding municipality code of the place of issue shall be typewritten immediately after the name of the city or municipality . 17. Item 20 - Remarks - Indicate herein appropriate remarks like "Issued after 4:00 o'clock P.M.," or "This cancels RTR No. ______" etc.