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 28, 1977 REVENUE MEMORANDUM ORDER NO. 05-77 SUBJECT : 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 Concerned In order to achieve proper, coordinated and effective implementation of Executive Order No. 206, dated January 9, 1970 as amended by Letter of Instruction No. 497 dated January 21, 1977, authorizing the Central Bank, the Department of Finance and the Bureau of Internal Revenue to make the necessary changes in the receipt of payments of internal revenue taxes through the banking system, there are herewith prescribed the procedures to be followed beginning March 1, 1977. I. General Procedures: A. The principal change in the procedure of payment of internal revenue taxes through the banking system is the use of only one document in the issuance of receipts for tax payments, the Revenue Tax Receipt , which is a Central Bank Form, CB-RCO Form No. 02-02 (Annex I). Prior to this innovation, the Bureau of Internal Revenue prepared a Tax Payment Acceptance Order (TPAO) which was presented by the taxpayer to an authorized agent bank, which in turn issued the Central Bank Official Receipt upon receiving the tax payment. These two documents were merged into one, the Revenue Tax Receipt . B. The Revenue Tax Receipt (RTR) in issued in sets of five (5) copies denominated as follows: Original Taxpayer's Copy Duplicate Central Bank Copy Triplicate BIR-DPC Copy Quadruplicate Agent Bank's Copy Quintuplicate (Card texture) BIR File Copy. C. The Central Bank of the Philippines is responsible for the printing and control of all Revenue Tax Receipts (RTR's). aisa dc D. It shall furnish the Bureau of Internal Revenue with a list of the agent banks authorized to accept internal revenue tax payments in every city and municipality in the Philippines. E. The Bureau of Internal Revenue is the sole agency that shall issue Revenue Tax Receipts (RTR's). F. The following Internal Revenue Taxes shall be payable to the Central Bank through the 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 and Science Stamp Taxes 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 for administration to local governments; 9. Charges on forest products; 10. Mining Taxes; 11. Firearms Tax; 12. Tobacco Inspection Fees; and 13. Sugar adjustment taxes. G. All cities and municipalities where there are commercial, savings and mortgage banks, stock savings and loan associations, development, banks, the Development Bank of the Philippines and the Land Bank of the Philippines and any of their branches shall now be covered by this procedure. H. The Accountable Forms Division of the Bureau of Internal Revenue shall have custody and control of RTR booklets received from the Central Bank. I. The Custodian of the RTR's shall issue the booklets of RTR's only upon presentation of a duly approved requisition. J. The Collection Agent or any designated Receipt-Issuing Officer shall be responsible for the issuance of RTR's to taxpayers upon presentation of a tax return, assessment notice or demand letter or Authority to Issue RTR or any communication issued by the Bureau of Internal Revenue for the collection/payment of taxes. K. 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 Revenue Tax Receipts. L. The Central 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. M. Each booklet of RTR's shall be issued for payment to only one authorized agent bank. II. Procedure in the procurement and issuance of Revenue Tax Receipts. A. The offices involved in the procurement and issuance of RTR's under the new system of payment of internal revenue taxes to the Central Bank through authorized agent banks with their functions and responsibilities indicated, are enumerated hereunder: 1. The Accountable Forms Division shall a. requisition the Revenue Tax Receipts (RTR's) from the Central Bank and shall act as custodian thereof; b. issue booklets of RTR's to authorized Bureau of Internal Revenue offices or officials only upon presentation of a requisition duly approved by the Regional Director for those to be issued in the Revenue Regional Offices or by the Assistant Commissioner designated by the Commissioner of Internal Revenue, for those to be issued by offices in the Central Office; c. furnish simultaneously the Data Processing Center, the Inspection Service (Fiscal Control Division) and the Regional Director concerned with a listing of the RTR booklets issued, indicating therein the inclusive serial numbers and the dates of issue, whenever booklets of RTR's are distributed; d. prepare and submit to the Central Bank a monthly report on the RTR's issued to all Bureau of Internal Revenue offices showing the inclusive serial numbers and dates of issue, on the prescribed form, BIR Form No. 806 (Annex "A"). 2. The Administrative Branch shall a. requisition the RTR booklets from the Accountable Forms Division and shall act as custodian of the same in the Regional Offices; b. issue booklets of RTR's to the Revenue District Collection Supervisors in the revenue regions authorized to issue the same upon presentation of a requisition duly approved by the Revenue District Officer; however in Revenue Region 4-A where there is only one Collection Unit for Revenue District Office Nos. 22 up to 25, issue the RTR booklets to the Chief, Collection Branch upon presentation of a requisition duly approved by the Regional Director; c. take responsibility for the availability of sufficient booklets, of RTR's at all times in the Revenue Region; d. render a monthly report to the Chief, Accountable Forms Division on the prescribed form, BIR Form No. 806 and furnish the Chief, Fiscal Control Division and the Chief, Assessment Branch of each revenue region with copies of this report; e. file all copies of cancelled RTR's received from the Assessment Branch; f. render a monthly report to the Accountable Forms Division on cancelled RTR's received during the month stating therein their serial numbers. 3. Collection Unit : The Collection Agent or any designated Receipt-Issuing Officer shall: a. brief the taxpayer on the following points before preparing an RTR: (1) the use of one check for the payment of the tax liabilities of more than one taxpayer shall not be allowed; (2) the full payment for one RTR should be either in cash or in check; payment partly in cash and partly in check for one RTR shall not be accepted by the agent bank; (3) payment for documentary and science stamps in amounts of P10.00 and up for each kind of tax and for cigarette strip stamps, if made by cheque should be either a certified or a manager's check; b. prepare a set of RTR addressed to the authorized agent bank assigned to him, only upon presentation of a tax return, demand letter, assessment notice, or any other basic document for the payment of an internal revenue tax; c. if a Tax Credit Memo is used for payment, do not issue an RTR except when the amount indicated on the Tax Credit Memo is less than the tax liability, in which case the RTR shall be prepared only for the balance of the tax due after deducting the tax credit; if the amount indicated on the Tax Credit Memo is equal to or greater than the tax liability, refer the matter to the Collection Service in the Central Office; d. always use a typewriter in the preparation of RTR's in order to insure legibility of all copies; e. fill in items 1 up to 22 and 24 (All other items shall be filled in by the bank); f. observe strictly the guidelines set forth in Paragraph II-B of this Memorandum Order for filling in the boxes and/or spaces in the RTR; g. indicate on all RTR's issued after the close of banking hours, but not later than the due date for the payment of the tax liability, the phrase "Issued after 4:00 o'clock P.M." to enable the taxpayer to pay his tax liability up to twelve o'clock noon the following day, without penalties; h. imprint the stamp of the office on the face of the basic documents and their attachments and annotate on the spaces provided thereon the RTR number, date of issue and amount to be paid; i. give the taxpayer his file copy of the tax return or document, his copy of the RTR and those of the Central Bank, the Bureau of Internal Revenue (DPC) and the Agent Bank; j. retain the BIR Card copy and staple it to the basic documents received or to the dummy sheets if no documents were presented; k. bundle the documents, arranged in the numerical sequence of RTR's issued during the day and, regardless of whether or not all the RTR's in the booklet were issued, prepare the Daily List of RTR's Issued using BIR Form No. 809 (attached as Annex "C") l. accomplish the Daily List of RTR's Issued in quintuplicate, filling up all the columns, except the column for validation data, by using the BIR Card copy of the RTR as basis for its preparation; properly fill in the information called for in the summary at the upper left hand side of the form, and accomplish the recapitulation accurately; if any RTR was cancelled, indicate the word "CANCELLED" opposite the number of the RTR being cancelled under the column "Name of Taxpayer"; m. include all five copies of cancelled RTR's in the bundle of basic documents corresponding to the same series of RTR's issued and together with the Daily List of RTR's Issued (BIR Form No. 809), forward the same to the Assessment Branch; n. attach the original, duplicate, triplicate and quadruplicate copies of the accomplished "Daily List of RTR's Issued" (BIR Form No. 809) to the corresponding bundle of basic documents for transmittal to the Assessment Branch; forward the quadruplicate to the Regional Directors of Revenue Regions Nos. 4A & 4B and to the respective Revenue District Officers in all other regions. o. retain the quintuplicate an his file copy; p. request for the RTR's of previous monthly payments made of withholding tax on wages, when the quarterly withholding tax returns (BIR Form W-1) presented for payment covers a bigger amount than the remittance tendered; annotate the pertinent data at the reverse side of Form W-1, sign it, and return the RTR's to the taxpayer; q. render a monthly report to the Regional Director or to the designated Assistant Commissioner as the case may be, on the RTR booklets with the corresponding serial numbers received, issued and still unissued, on the prescribed form, BIR Form No. 807 attached as Annex "A-1"; furnish the Fiscal Control Division a copy of this report. B. 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. Indicate the date and place of issue in item 1; 3. Items 2, 3 and 4 identify the taxpayer; all these information are obtainable in the basic documents to be presented by the taxpayer; 4. Item 5 Check the appropriate box or indicate the data needed to fill the blank. a. Indicate the installment being paid as 1st or 2nd. b. Any payment is considered installment payment if: (1) authorized by provisions of the National Internal Revenue Code as in the case of income tax, where the tax due from an individual taxpayer is in excess of P1,000.00 and the same may be paid in two installments; (2) the Commissioner of Internal Revenue has approved the request of a taxpayer that his tax liability be paid in installments. c. Payment in considered part payment if the amount being accepted is less than the tax or installment due or that shown or demanded in the basic document, or when the tax has become delinquent and the taxpayer has not provided for the penalties and other increments. d. Full payment is the payment which is equal to the tax due per the basic document presented and is made on time, or if delinquent, that which includes all increments e. " Self-assessed " are the taxes due per return as computed by the taxpayer. Examples are the quarterly percentage, corporate quarterly income, all other income taxes computed by the taxpayer in his return, etc.. 5. Item 6 Basic Document this indicates the document presented by the taxpayer. If a return is presented, place an "x" on the blank. If an assessment notice or a demand letter or an Authority to Issue Revenue Tax Receipt is presented, mark the appropriate box with an "x''. If no basic document it presented, typewrite "None" in the blank (-) provided for Tax Return and prepare the Dummy Sheet, BIR Form No. 808, attached as Annex "B". 6. Item 7 Kind of Tax Indicate the particular tax being paid, either income tax, withholding tax on wages, withholding tax at source, contractor's tax, manufacturer's tax, mining tax, privilege tax, etc.. 7. Item 8 Assessment/Demand No. This space shall be filled in if an assessment notice or a reminder for the second installment of the income tax, or a demand letter is presented as basis for payment. If none, typewrite "N/A" which means not applicable. 8. Item 9 Data of Assessment/Demand Indicate in this space the date of issue appearing in the assessment notice or letter of demand. 9. Item 10 Tax Numeric Code Indicate the BIR as well as the BRT (Bureau of Treasury)/GFS (Government Funding System) Codes. To prevent any error, refer to the TAX NUMERIC CODE GUIDE. 10. Item 11 Period Covered This refers to the period for which the tax is paid. If the tax is payable monthly, indicate the number of the month and year, if quarterly, the quarter, as well as the year. Example: Withholding Tax on Wages for the month of March, 1977: Typewrite "3" under month and "77" under year. Percentage tax for the third quarter of 1977: Typewrite "31" under quarter and "77" under the year. 11. Item 12 Due Date of Tax this item pertains to the due date indicated on the assessment notice or letter of demand, or the last date for the payment of self-assessed taxes. Examples: Income tax due from a salaried individual for 1976 is P200.00 only and the last day for its payment is March 15, 1977. 3-15-77 shall be entered in the space provided. 12. Items 13, 14, 15, 16, 17, 18 and 19 shall be filled up in figures, in accordance with the basic document 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-assessed 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 these figures in the same space, indicate the additional surcharge, interest and compromise penalty computed due to late payment. 13. Item 17 is arrived at by adding items 13, 14, 15 and 16, including subsequent increments due to late payment. 14. Item 18 is the amount to be paid and shall also be the amount indicated in Box 22. 15. Item 19 reflects the balance after subtracting item 18 (Amount to be paid) from item 17 (Total amount due). 16. Item 20 Typewrite your name and sign legibly. 17. Item 21 Place of Assignment Typewrite your specific place of assignment as Receipt-Issuing Officer, e.g., Collection Unit Manila or Revenue District Office No. 28, Malabon, etc.. 18. Item 24 Indicate here the agent bank assigned to you. 19. If an RTR is issued in place of a previously issued RTR which was not presented to the agent bank for payment, indicate the number of that previously issued but unvalidated RTR in the space above the serial number of the RTR to be issued by typewriting the phrase "This cancels RTR # ______ dated _____________". 20. If an RTR is cancelled print in bold letters the word "CANCELLED" across the face of that RTR and affix your initial and indicate your place of assignment as a Receipt-Issuing Officer. III. Processing and Control of RTR's Issued and Documents Received from the Collection Agents and/or Receipt-Issuing Officers. The offices and/or units involved in the processing of RTR's issued and basic documents received by RTR issuing officers are enumerated hereunder with a definition of their respective functions and responsibilities. A. The Assessment Branch shall 1. keep and maintain a Control Register of RTR's issued to the Issuing Officers in the region using as a basis the listings furnished the Regional Director, by the Accountable Forms Division and that received from the Administrative Branch; periodically post issued numbers as reflected in the Daily Listing of RTR's Issued; cdt 2. check completeness and sequence of RTR's issued as well as the accompanying documents, which may be a tax return, demand letter or assessment notice, or dummy sheet (BIR Form No. 808); check also correctness of annotations on basic documents and if a dummy sheet is included, check the correctness of payment made by referring to the pertinent office records; 3. assign a block number to every "Daily List of RTR's Issued" received. The block number shall indicate the region, number, the month, the serial number and the year. Begin with No. 001 every month: Example: the first Daily List of RTR's Issued received in March, 1977 in Revenue Region 4A shall be given the following block number: 4A-3-001-77 4A represents the Region, 3 the month of March, 001 the serial number, and 77 the year. 4. detach the BIR Card copy of the RTR from the basic documents; arrange sequentially according to its number and with the original copy of the Daily List of RTR's Issued, transmit the same to the Collection Branch or to the Revenue District Officer of the Revenue Districts the offices of which are not in the same locality as the Regional Office, for reconciliation; 5. distribute the other copies of the Daily List of RTR's Issued as follows: Duplicate Assessment Branch File; Triplicate to the Central Bank and Quadruplicate to Bureau of Treasury; For the revenue regions outside the Metro Manila Area where there are offices of the Central Bank and the Bureau of Treasury, these copies should be sent to their respective regional offices. In Revenue Regions 1, 2, 5, 8, 9 and 10-B, where there are no Central Bank Regional Offices, the Central Bank copy of the Daily List of RTR's issued (BIR Form No. 809) shall be transmitted to the Central Office through the BIR Pouch System. Revenue Regions 3A, 3B, 4A, 4B and 4C shall transmit daily by messenger the Central Bank copy of the Daily List of RTR's Issued to the Administrative Service in the Central Office. 6. maintain a complete and systematic file of the duplicate copies of the Daily List of RTR's Issued arranged in numerical sequence by the block number given; 7. sort basic documents according to kind tax return, assessment notice, demand letters, dummy sheet, Authority to Issue Revenue Tax Receipt, etc.; 8. process all tax returns in accordance with existing procedures; 9. forward to the Collection Branch: a. all dummy sheets for the purpose of determining the correctness of the payment received and attaching the same to the document or docket involved. b. all assessment notices and/or demand letters for processing and attachment to the corresponding dockets. 10. forward the Authority to Issue Revenue Tax Receipt to the office or unit which issued it; 11. transmit to the Administrative Branch all copies of cancelled Revenue Tax Receipts for filing and future reference; 12. resolve any discrepancy detected in paragraphs 1 and/or 2 hereof; if same cannot be resolved in the region consult the office of the Commissioner of Internal Revenue through the Assessment Service. B. The Administrative Service shall deliver daily to the Central Bank its copy of the Daily List of RTR's Issued (BIR Form No. 809) received from the different Regional Offices through the Pouch System and those received through personal delivery. C. Regional Director/Revenue District Officer The Regional Director in Revenue Regions 4A and 4B or the Revenue District Officers in the Revenue District Offices except Revenue District Offices Nos. 22 up to 25 and 28 up to 36, shall designate the internal revenue officer who shall gather daily the Reconciliation Officer's copies of the Summary Report of Collection of National Internal Revenue Taxes (CB-RCO Form No. 003) directly from all authorized agent banks within his jurisdiction. Use the quadruplicate copies of the Daily List of RTR's Issued (BIR Form 809) received from the RTR Issuing Officers to check whether or not all Summary Report of Collections of National Internal Revenue Taxes (CB-RCO Form No. 003) have been gathered. Retain BIR Form 809) (quadruplicate) as file copy and forward CB-RCO Form No. 003 to the Reconciliation Officer. D. Collection Branch/Revenue District Officer/Collection Enforcement Division : 1. The Collection Branch in Revenue Regions 4A and 4B, the Revenue District Officers, except of Revenue District Offices Nos. 22 up to 25 and from 28 to 36 and the Collection Enforcement Division in the Central Office shall perform the functions enumerated hereunder with respect to RTR's issued in Revenue Regions 4A and 4B, the Revenue District Offices except those under the jurisdiction of Revenue Regions 4A and 4B and authorized offices in the Central Office, respectively. 2. The Chief of the office concerned shall designate the Reconciliation Officer/s who shall: a. reconcile the Daily List of RTR's Issued against the corresponding Summary Report of Collections of National Internal Revenue Taxes (CB-RCO Form No. 003); b. post the validation number as shown in the Summary Report of Collection of National Internal Revenue Taxes (CB-RCO Form No. 003) opposite the appropriate RTR number under the column provided therefor in the Daily List of RTR's Issued (BIR Form No. 809) and on item 23 of the BIR Card copy of the RTR's received from the Assessment Branch; c. check the Recapitulation in the lower portion of the Daily List of RTR's Issued (BIR Form No. 809); accomplish the Daily Summary of Internal Revenue Collections by Kind of Tax (BIR Form No. 1236) to be used as basis for reconciliation of the Recapitulation under BIR Form No. 809; d. determine the RTR's listed in the Daily List of RTR's Issued which remain open, that is, no validation number has been posted in the column for that purpose; that is an indication that the RTR was not presented to the bank for payment; e. verify from the agent bank if actual payment was made on any RTR, opposite which no validation number is posted on the Daily List of RTR's Issued one week after the date of issue, except when the deadline for the payment of the tax has not passed within that week. If same was not presented for payment, it becomes a delinquent account in which case steps should be instituted for its immediate collection; f. prepare a collection letter, on the form prescribed for the purpose, BIR Form No. 1234 (Annex "J") for the signature of the Revenue District Officer or the Regional Director or the Revenue Service Chief (Collection) as the case may be, for the collection of delinquent accounts arising from non-validation of RTR's issued, except those whose addresses are beyond his jurisdiction; furnish the Assessment Branch of his revenue region or the Assessment Service (for collection letters prepared in the Central Office) with copies of the letters. The accounts or increments demanded in the collection letter, which have not been previously set up in Data processing Center through the processing of tax returns or Form 40, shall be set up in another Form 40 by the Assessment Branch or the Assessment Service, as the case may be. g. segregate the BIR Card copy of the RTR's issued to taxpayers whose addresses are not within the jurisdiction of the Regional Office or the Revenue District Office which issued the RTR; h. forward the BIR Card copy of RTR's issued by RDO's to taxpayers falling under the jurisdiction of other RDO's within the same revenue region, directly to the appropriate Revenue District Office. Transmit immediately to the respective revenue regions the BIR Card copies of RTR's issued to taxpayers falling within their respective jurisdiction; i. retain the BIR Card copy of RTR's issued for payments involving accounts within his jurisdiction (Revenue District Office payments below P5,000.00; Collection Branch payments above P5,000.00 but not more than P20,000.00; Receivable Accounts Division payments on all assessment notices and demand letters issued in the Central Office, the aggregate amounts of which involve P20,000.00 or more); j. send immediately a collection letter (BIR Form No. 1234), if there is no validation number indicated in the space provided for the purpose in the BIR Card copy of the RTR received by the Region or the Revenue District Office from other offices as this is an indication that Payment to the agent bank was not made; furnish the Assessment Branch with copies of these collection letters for processing in the manner described in paragraph 2 f; k. prepare the Weekly Summary of Internal Revenue Collections, BIR Form No. 1233 (Annex "E") in five copies, which shall be distributed as follows: Original Collection Service Chief Duplicate Central Bank Triplicate Bureau of Treasury Quadruplicate Regional Director Quintuplicate File Copy 1. arrange the BIR card copies of the RTR's alphabetically for reference and statistical purposes. 3. The Revenue District Officer shall: a. forward to the Collection Branch of the Revenue Region the Summary Report of Collections of National Internal Revenue Taxes (CB RCO Form No. 003) after all the Validation Numbers have been posted to the Daily List of RTR's Issued. b. forward the Daily List of RTR's Issued to the Collection Branch, one month after the date of issue, whether or not all RTR's in the List have been validated. c. continue the collection proceedings of all unvalidated RTR's until the account is collected. As soon as collection is effected, inform the Collection Branch to cancel the unvalidated RTR appearing in the Daily List of RTR's Issued, as well as the number of the RTR issued for such payment. 4. The Collection Branch shall: a. maintain a systematic file of all Daily List of RTR's Issued (BIR Form No. 809) and Summary Report of Collections of National Internal Revenue Taxes (CB-RCO Form No. 003) received in the revenue region; b. control and update all unvalidated RTR's issued in accordance with the following procedures: (1) card all unvalidated RTR's issued on BIR Form No. 10.00 (attached as Annex "F") and arrange the same alphabetically by name of the taxpayer; (2) post payment data on the card as soon as information of payment is received to close the taxpayer's account and pull out the card from the file of delinquent RTR's; (3) program of systematic and consistent follow-up of all delinquent accounts arising from unvalidated RTR's until same are collected. c. prepare and submit a monthly report to the Collection Service on all unvalidated RTR's of the revenue region still outstanding as of the end of the month on BIR Form Nos. 1235-A attached as Annexes G & G-1; this report shall be prepared in four (4) copies and distributed as follows: (1) Original to the Revenue Service Chief (Collection) (2) Duplicate to the Receivable Accounts Division (3) Triplicate to the Regional Director (4) Quadruplicate as File Copy of the Collection Branch. D. The Data Processing Center shall: 1. collect from Central Bank daily the Data Processing Center's copy of the Summary Report of Collections of National Internal Revenue Taxes (CB-RCO Form No. 003), Bureau of Internal Revenue copies of RTR's and the corresponding punched cards or tapes; 2. transfer data in punched cards or tapes received from Central Bank into the Bureau of Internal Revenue tape; verify data from Central Bank Tapes against BIR copy of RTR's; 3. reconcile totals extracted from cards or tapes received from the Central Bank with the totals in the Summary Report of Collections of National Internal Revenue Taxes (CB-RCO Form No. 003); resolve immediately any discrepancy; 4. prepare a monthly summary of collections by kind of tax and agent bank including branches, a copy of which shall be furnished the Chief, Accounting Division; include a summary of collections by banks in every city or municipality covered by payments through the banking system; 5. prepare annual ALPHA LISTS of Revenue Tax Receipts issued and validated, copies of which shall be furnished the following: a. Overall list (Central Office) to Receivable Accounts Division; b. Overall list (by region) to the Collection Branch of each region; 6. Match or update tax accounts established as receivable against abstract or alpha list of payments; 7. forward the Bureau of Internal Revenue copy of the Revenue Tax Receipts together with the Summary Report of Collections of National Internal Revenue Taxes (CB-RCO Form No. 003) to the Bureau Auditor in accordance with the provisions of COA General Circular No. 133 dated September 1, 1975. E. The Accounting Division shall: 1. secure copies of the following Central Bank reports: a. Daily Summary of Internal Revenue Collections; b. Monthly Total of Daily Summary of Collections by Agent Banks; c. Monthly Summary of Adjustments by Central Bank d. Summary Report of Collections of National Internal Revenue Taxes (CB-RCO Form No. 003) 2. reconcile monthly totals of daily summary of collections as reported by agent banks against the total of monthly summary of collections prepared by the Data Processing Center; 3. utilize the monthly summary of collections by kind of tax and agent bank furnished by the Data Processing Center as source of accounting entries; 4. resolve any discrepancy discovered in the reconciliation of the Daily Summary of Collections submitted by agent banks against the total monthly summary of collections made by the Data Processing Center. F. The Fiscal Control Division shall; 1. check and reconcile reports submitted by Accountable Forms Division, Administrative Branch and the Collection Agent/RTR Issuing Officer on the number of RTR's received, issued and unissued. 2. investigate any discrepancy discovered from the reconciliation of such reports; 3. include in its monthly report of accomplishments the results of the audit and reconciliation processes undertaken. IV. Miscellaneous Procedures: A. Procedure to be followed where 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 Revenue Tax Receipt 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 Revenue Tax Receipt 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 investigating divisions under the Office of the Commissioner shall prepare the Authority to Issue Revenue Tax Receipt for the collection of deficiency taxes and/or penalties found due upon investigation and which the taxpayers 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. All Authority to Issue Revenue Tax Receipt prepared in the Central Office shall be presented to the Receivable Accounts Division for the issuance of the RTR. d. The Receivable Accounts Division shall requisition RTR booklets from the Accountable Forms Division, which requisition shall be approved by the Assistant Commissioner designated by the Commissioner of Internal Revenue. e. The Receivable Accounts Division shall issue an RTR only upon presentation of an Authority to Issue Revenue Tax Receipt duly signed by the chief of the division concerned or his duly authorized representative. f. 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 RTR's in the Receivable Accounts Division. g. The Collection Enforcement Division shall perform the functions and assume the responsibilities of the Reconciliation Officer prescribed in paragraph III B 2 for the RTR's authorized to be issued in the Central Office. h. The functions performed and the responsibilities assumed by the Assessment Branches in the regional offices shall be discharged by the Assessment Service in the Central Office. B. Dishonored Checks 1. The Collection Service shall: a. take delivery of the dishonored checks from the Central Bank; b. institute immediately collection proceedings on the dishonored cheeks in accordance with existing policies and procedures; c. furnish the Assessment Service with copies of the collection letters issued for inclusion in Form 40; d. submit to the Accounting Division a monthly report of all dishonored checks. C. Lost RTR's The procedure prescribed for the reporting of accountable forms that are lost shall also be applicable to lost RTR's. D. All monthly reports required in this Order shall be submitted within ten days after the end of each month. V. Repealing Clause: Provisions of all previous Memorandum Orders which are inconsistent herewith art hereby repealed. VI. Effectivity : This Order takes effect March 1, 1977. EFREN I. PLANA Acting Commissioner of Internal Revenue BIR FORM NO. 806 BIR FORM 807 ANNEX "B" BIR FORM NO. 808 DUMMY SHEET (To be accomplished when no basic document is submitted for the issuance of an RTR) Name of Taxpayer __________________________________________ Address ____________________________ TAN _________________ Kind of Tax Paid __________________ Tax Numeric Code ________________ Period Covered Nature of Payment: __ _______ Installment Part Payment Delinquency Basis for Payment Amount Paid ______________________ Basic Tax ______________________ Surcharge ______________________ Interest ______________________ Compromise Total ______________________ RTR No. Issued ______________________ Agent Bank ______________________ Date ______________________ Remarks: Prepared By: ______________________ Signature ______________________ Name ______________________ Title ANNEX "D" ANNEX "F" BIR Form No. 10.00 RECORD OF UNPAID RTR ___________________________ ________________ __________________ Name of Taxpayer TAN Address Revenue District Office No. __________________ Issued RTR Number _______________________ Kind of Tax ______________________________ Basic Tax Due P __________________ Surcharge __________________ Interest __________________ Compromise Penalty __________________ Total Amount to be Paid P __________________ Payment: Amount Paid P __________________ RTR No. _____________ Date of Payment __________________ ANNEX "G" ANNEX G-1 SUMMARY REPORT OF UNVALIDATED RTR'S For the Month of ___________________ Revenue Region No. ____________ ____________________________ NUMBER OF UNVALIDATED RTR'S AMOUNT INVOLVED Unvalidated RTR's outstanding as of the beginning of the Month: _______ _______ Revenue District Office No. _______ _______ _______ _______ _______ _______ _______ _______ _______ _______ _______ _______ _______ _______ _______ Collection Branch _______ _______ _______ ________ ________ Total ________ P_______ Unvalidated RTR's Issued during the Month: Revenue District Office No. _______ _______ _______ _______ _______ _______ _______ _______ _______ _______ _______ _______ _______ _______ _______ Collection Branch _______ _______ _______ _______ _______ Total _______ P______ Unvalidated RTR's Closed by payment during the Month: Revenue District Office No. _______ _______ _______ _______ _______ _______ _______ _______ _______ _______ _______ _______ _______ _______ _______ Collection Branch _______ _______ _______ _______ _______ Total _______ P______ Balance of Unvalidated RTR's at the end of the Month: Revenue District Office No. _______ _______ _______ _______ _______ _______ _______ _______ _______ _______ _______ _______ _______ _______ _______ Collection Branch _______ _______ _______ _______ _______ TOTAL ====== ====== SUBMITTED BY: ____________________ Name in Print ____________________ Signature Chief Collection Branch TAN _______________ ANNEX "H" BIR FORM NO. 1236 RECAPITULATION (To be Accomplished by BIR) Kind of Tax No. of RTRs Validated Amount INCOME ____________________ P ____________________ BUSINESS ____________________ ____________________ SPECIFIC ____________________ ____________________ TRANSFER ____________________ ____________________ OTHERS (SPECIFY) ____________________ ____________________ _____________ ____________________ ____________________ ______________ ____________________ ____________________ TOTAL ____________________ P ____________________ RECONCILED BY: _______________________ BIR Payment Audit Officer To be attached to CB-RCO-003 CB FORM NO. CB RCO 0202 ANNEX "J" BIR Form No. 1234 Letterhead Revenue Region No. _____ _____________ CL-00001-23-4A Date __________ __________________ __________________ __________________ The records show that Revenue Tax Receipt No. _____________ which was issued to you on _______________ has not, up to this time, been validated by the ___________________. In view thereof, the tax stated thereon has now become (Authorized Agent Bank) delinquent and is subject to the increments incidental thereto. Hereunder is the computation of the total tax due from you, including the interest and penalties that have accrued: Total Tax to be Paid per previously issued RTR P __________ Add: Interest P__________ Surcharge __________ Compromise Penalty __________ Total Amount to be Paid P ========= It is, therefore, requested that you settle your tax liability on or before _______ to avoid further increments to this amount and in order that your name will not be among those listed delinquent taxpayers. Please present this letter to the Collection Agent, who shall issue a new RTR for the payment of the tax to an authorized agent bank. Very truly yours, _________________ (Name of Official) __________________ (Designation) TAN ____________ ANNEX "J-1" BIR Form No. 1234A CL-00001-CO Date ________ __________________ __________________ __________________ The records show that Revenue Tax Receipt No. _____________ which was issued to you on _______________ has not, up to this time, been validated by the ______________________. In view thereof, the tax stated thereon has now become (Authorized Agent Bank) delinquent and is subject to the increments incidental thereto. Hereunder is the computation of the total tax due from you, including the interest and penalties that have accrued: Total Tax to be Paid per previously issued RTR P __________ Add: Interest P__________ Surcharge __________ Compromise Penalty __________ Total Amount to be Paid P ========= It is, therefore, requested that you settle your tax liability on or before _______ to avoid further increments to this amount and in order that your name will not be among those listed delinquent taxpayers. Please present this letter to the Collection Agent, who shall issue a new RTR for the payment of the tax to an authorized agent bank. Very truly yours, _________________ (Name of Official) __________________ (Designation) TAN ____________ ANNEX "K" BIR FORM NO. 23.19A AUTHORITY TO ISSUED REVENUE TAX RECEIPT If presented on or before _________, 19____ ________________, 19 ____ To the RTR Issuing Officer _____________________ _____________________ ____________________________________ of ____________________________ (Name of Taxpayer) (Address) will pay the sum of _______________________________ (P __________________) (In Figure) as full/part payment of his/its _____________________________________________ (State exact nature of liability) due from him/it for the year/period ____________, as detailed hereunder: ASSESSMENT NO. (Schedule ___________________ Paragraph _______________ DEMAND NO. __________) Basic Tax ___________________________ P __________ ________________ % Surcharge ___________ __________ ________________ % Surcharge ___________ __________ Interest of ______________ % per annum for the period from ____________ to _______________ __________ Compromise __________________________ __________ (Describe nature of violation) TOTAL P ========= COMMISSIONER OF INTERNAL REVENUE BY: ________________________________ Chief, __________ Division RTR No. __________________ Date of RTR _____________ Amount ___________ VALIDATION NO. ____________ DATE ____________ ANNEX "L"