Amendment of RMO 39-86 Dated November 18, 1986 Re: Compromise Settlement of Delinquent Accounts or Disputed Assessments as of December 31, 1985

February 9, 1987 REVENUE MEMORANDUM ORDER NO. 03-87 SUBJECT : Amendment of RMO 39-86 Dated November 18, 1986 Re: Compromise Settlement of Delinquent Accounts or Disputed Assessments as of December 31, 1985 TO : All Internal Revenue Officers and Others Concerned PURPOSE : This Memorandum Order Seeks to Expedite the Processing of Compromise Offers Under Executive Order No. 44 by Liberalizing Certain Restrictions Embodied in Previous Issuances 1. Coverage . This Order shall apply only the applications of compromise settlement involving less than 30% of the basic taxes due. 2. Place for filing of application for compromise settlement . - Notwithstanding the provisions of previous issuances, the application may be filed directly with and acted upon by the: cd i (a) Revenue District Officer - for accounts involving basic taxes not exceeding P50,000; (b) Revenue Regional Offices - for accounts involving basic taxes not exceeding P100,000. To give effect hereto, applications falling under the above categories which were filed with the National Office shall be referred to the Revenue District Office or Regional Office concerned, together with the corresponding docket. 3. Allowable Compromise Settlement rates . (a) Where the compromise settlement offered constitutes 20% or 25% of the basic tax due, the offer may be accepted outright, if it complies with the "current ratio" requirements under par. 7.6.6 a) & b) of RMO 39-86. (b) Where the compromise offer is less than 20%, the same shall be referred to the Regional Evaluation Committee to be dealt with in accordance with paragraphs 5.4 to 8.2 inclusive of RMO No. 39-86. 4. Reporting Requirements . The Regional Director shall submit a weekly report of accomplishment to the Collection Office containing the name and address of taxpayer, taxable year, kind of tax, rate and amount of compromise paid. The provisions of all issuances inconsistent herewith are hereby amended or revoked accordingly. cd i This Order shall take effect immediately. (SGD.) BIENVENIDO A. TAN, JR. Commissioner