Guidelines in the Dissemination of the Provisions of Presidential Decree No. 371 and Changes in the Handling and Processing of Returns Due on March 15

January 21, 1974 REVENUE MEMORANDUM ORDER NO. 07-74 SUBJECT : Guidelines in the Dissemination of the Provisions of Presidential Decree No. 371 and Changes in the Handling and Processing of Returns Due on March 15 TO : All Internal Revenue Officers and Others Concerned In view of the promulgation of Presidential Decree No. 371, dated January 9, 1974, amending Section 45(c) of the National Internal Revenue Code, affecting the filing of 1973 income tax returns, the following guidelines and revisions to existing procedures in the handling and processing of income tax returns are hereby issued for compliance by all concerned: A. Information Campaign . There is an imperative need for a widespread and systematic campaign to inform the public of the revision of the due date for filing the income tax returns, from April 15 to March 15, of the following individuals, starting with their 1973 returns 1. Residents of the Philippines, whether citizens or aliens whose incomes were derived solely from salaries, wages, interest, dividends, allowances, commissions, bonuses, fees, pensions or any combination thereof. 2. Residents of the Philippines whether citizens or aliens, who have no income or whose income is below one thousand eight hundred pesos (P1,800.00) or who did not have any transaction in any business carried on for gain or profit during the preceding year, but are nevertheless required to file an income tax return under paragraph 3 of subsection (a) of Section 45, enumerated as follows: a. An official or employee of the government or one who has a contract with the Government of the Republic of the Philippines, or any of its agencies or instrumentalities, including government-owned or controlled corporations, regardless of the nature of his appointment or duration of his employment; b. A professional as defined under Section 45; c. A registered or beneficial owner or mortgagee of any real property; d. A registered or beneficial owner or mortgagee of any motor vehicle; e. A registered or beneficial owner or mortgagee of any share of stock or security of a corporation, or any interest in a firm or partnership; f. One who has travelled abroad, except children below eighteen years of age; g. One who has filed a certificate of candidacy for any public office except barrio officials and municipal treasurers; h. One who is engaged in trade or commerce. The campaign should be concentrated in the government and business offices, civic, social and religious organizations, schools and among barangay leaders and other groups or places through which the Office can reach the most number of filers at any one time. Due to the limited period within which to conduct the campaign, contacts made during the last campaign for the implementation of Presidential Decree No. 213 should also be utilized to the maximum. aisa dc B. Forms to be Used . Individual taxpayers who are subject to file their income tax returns on March 15 should use B.I.R. Form 1701A. If said form is not available, any form for individual taxpayers may be used. However, these forms should be clearly marked or stamped "1701A" on the upper left hand corner of the face of the return, by the Administrative Branch prior to distribution of the forms, for easy identification by those charged with the processing of returns. C. Transmittal of Returns to the Regional Offices . In transmitting "Exempt" and "No Payment" individual income tax returns to the Assessment Branches of their respective regions, the Collection Agents and Revenue District Officers should segregate Forms 1701A from Forms 1701 before they are bundled in batches of 100 returns. Priority should, however, be given to the transmittal of refundable returns (withholding on wages), whether filed on Form 1701A or in Form 1701. The returns so bundled should be transmitted weekly up to March 1, 1974 and daily thereafter. Income tax returns of taxpayers who are required to file their returns on or before March 15 but did so after the said date should be bundled separately and covered by a transmittal stating the fact of their having been filed late. D. Batching of Returns in the Assessment Branches of Regional Offices . Forms 1701A of all classifications should be batched separately from Forms 1701 before numbering. E. Transmittal of Returns to Data Processing Center . In order to prevent the loss of returns in transit and to alert the Data Processing Center of transmittals of returns, Regional Offices that transmit returns to Data Processing Center by air or water transportation should so inform the Center by wire on the same day that they transport the return stating therein the following: 1. date returns were transported; 2. number of returns transmitted; 3. identification of carrier; 4. number of Bill of Lading covering the transmittal; and 5. expected date of arrival. The wire should be addressed as follows: Data Processing Center Bureau of Internal Revenue East Triangle, Quezon Boulevard Extension Diliman, Quezon City Upon receipt of the wire sent by the Regional Offices, the Chief of the Data Processing Center should assign personnel to check and take delivery of the returns. If the returns are not received within a reasonable time, the Data Processing Center should inform the office of origin of the non-arrival of the cargo of returns. All those concerned are hereby enjoined to follow strictly the provisions hereof. This Order takes effect immediately. MISAEL P. VERA Commissioner of Internal Revenue TAN 1601-593-5