Amendment to Section IIa and IIIE(a) of Revenue Memorandum Order No. 27-85

February 20, 1986 REVENUE MEMORANDUM ORDER NO. 05-86 SUBJECT : Amendment to Section IIa and IIIE(a) of Revenue Memorandum Order No. 27-85 TO : The Assistant Commissioners, Sector Operations, National Assessment and Collection Offices, Regional Directors, and Others Concerned I. BACKGROUND AND OBJECTIVE: A thorough review of the policy initiated in Revenue Memorandum Order No. 27-85 discouraging payment of deficiency tax liabilities before a formal assessment notice or demand letter is issued, was made in response to several requests from various sectors of this Bureau. As a result thereof, it was decided to allow taxpayers who opt to pay their deficiency tax liabilities after they have been informed of taxes still due from them after an audit or investigation and before a formal assessment or demand letter is issued, to do so. cdt This Order is therefore issued to articulate this change in policy and to prescribe procedures for its effective implementation, bearing in mind the Bureau's thrust to continually improve systems and procedures for a more efficient tax administration, particularly its tax collection activities. II. POLICIES A. Payment of deficiency taxes can be made after the report of investigation has been submitted to the Revenue District Officer or Division Chief after such report of investigation has been submitted to the Revenue District Officer or Division Chief after such report has been reviewed and indorsed by the Group Supervisors or Section Chief. B. The taxpayer shall signify in writing his option to pay the tax even without a formal issuance of an assessment notice or a demand letter in the prescribed format, Annex "A". C. All reports of investigation wherein taxpayers opted to pay their deficiency tax liabilities before the issuance of a formal assessment notice or letter of demand shall be transmitted to the Assessment Branch or the Sector Audit Review Division or National Audit Review Division within fifteen (15) days after the issuance of the "Authority to Issue Payment Order" (ATIPO). D. The Assessment Branches and the Sector and National Audit Review Divisions shall process the reports and accomplish the Termination Letters prescribed in RMO 28-83 dated September 9, 1983 within forty-five (45) days from receipt of the reports from the investigating offices. cd i E. Termination letters shall be signed by the Officials authorized to approve the reports of investigation. III. PROCEDURES A. The taxpayer shall accomplish the prescribed agreement form which shall be attached to the report of investigation submitted by the Examiner, reviewed and indorsed by his Group Supervisor or Section Chief as the case may be. The Revenue District Officer shall number all ATIPOs issued consecutively. The number shall indicate the region number, revenue district number, the serial number and the month and year of issue. Example: The first ATIPO issued by the Revenue District Officer of Revenue District No. 23 in the month of April, 1986 shall be numbered as 4A-23-001-4-86 or if issued by the Office Audit Section of the Assessment Branch of RR 4B, the number shall be 4B-OAS-001-4-86. B. The ATIPO shall be accomplished in duplicate in accordance with Section IV Paragraphs A1 and 2 of Revenue Memorandum Order No. 3-82 dated January 20, 1982. C. Taxpayers in the Revenue Regional and District Offices shall present the ATIPO to the Collection Agent while those who were issued ATIPO by the different investigating divisions in the National Office shall present the same to the Receivable Accounts Division. D. The Collection Agent or the Payment Order Issuing Officer in the Receivable Accounts Division shall attach both copies of the ATIPO to the duplicate copy of BIR Form No. 809, Daily List of Payment Orders Issued, for transmittal to the Assessment Branch in the region or to the National Assessment Office in the National Office in accordance with RMO 3-82. E. The Assessment Branch or the National Assessment Office shall detach the original copy of the ATIPO for further action. The duplicate copy shall be transmitted to the office which issued the ATIPO for attachment to the tax docket. If the ATIPO was issued by any of the investigating divisions under the Sector Operations Office, the National Assessment Office shall transmit the original copies to the Sector Audit Review Division and to the National Audit Review Division for those issued by the Refund Audit Division. F. The Assessment Branch, the Sector Audit Review Division and the National Audit Review Division shall use these copies of the ATIPO to check whether or not the reports of investigation have been submitted by the investigating units issuing the ATIPO in accordance with the time frame set by this Order. G. The Chief, Assessment Branch, Chiefs, Sector Audit Review and National Audit Review Divisions shall call up reports of investigation for which an ATIPO was issued, but has not been submitted within fifteen (15) days after its issuance. H. After review and processing of the reports of investigation, the same shall be transmitted to the appropriate office in accordance with the provisions of RMO 27-85 dated September 25, 1985. I. The Collection Branches and the Receivable Accounts Division shall see to it that the signed Termination Letters are released for mailing immediately. IV. REPEALING CLAUSE All provisions of existing Revenue Memorandum Orders and other issuances which are inconsistent herewith are hereby revoked or amended accordingly. V. EFFECTIVITY This Order takes effect immediately. RUBEN B. ANCHETA Acting Commissioner ANNEX A Agreement Form