Phase II of Tax Returns Compliance Program (Secure the Filing of Delinquent Tax Returns)

February 8, 1968 REVENUE MEMORANDUM ORDER NO. 08-68 SUBJECT : Phase II of Tax Returns Compliance Program (Secure the Filing of Delinquent Tax Returns) TO : All Revenue Operations Heads All Revenue Regional Directors The Chief, Tax Information Division All Revenue District Officers And All Others Concerned I. PURPOSE: To contact non-filers and secure the filing of delinquent tax returns. II. SCOPE: 1. Area of operation shall be nation-wide. 2. It shall comprehend all internal revenue taxes determinable. III. PERIOD: The time for accomplishing this project shall be from February 14 to April 30, 1968 as per the following schedule: February 14 to 16, 1968 Review of TRCP lists of non-filers by Revenue District Officers. Briefing, orientation and assignment of cases to fieldmen. February 19 to Field contact of non-filers by fieldmen April 15, 1968 to secure the filing of delinquent tax returns. April 16 to 30, 1968 Submission of reports by field offices and analysis of work accomplished. IV. POLICY STATEMENTS: 1. (a) All persons required under the law to file tax return(s) shall be given a chance to file said return(s) voluntarily in which case the compromise to be imposed incident to delinquency shall be nominal only and in accordance with existing circulars on the subject. However, where a person is discovered to have accumulated extensive property holdings, no compromise should be accepted. Instead, the case should be referred to the National Tax Fraud Unit for fraud investigation. (b) If a person required by law to file a tax return, upon apprehension and notice by an internal revenue officer, still refuses to file the required return(s), he shall be prosecuted to the fullest extent under the law. 2. (a) The performance of all revenue officials and employees participating in this program shall be taken into consideration in the advancement and/or transfer of the personnel concerned and his record of performance shall be included in his 201 file for consideration in rating his efficiency. (b) All fieldmen assigned to Revenue District Offices shall be utilized in the field contact of non-filers along the same organizational and functional lines as presently constituted. Fieldmen having in their possession tax cases in danger of prescribing by April 15, 1968 shall however give priority to these cases. V. PROGRAM OR RESPONSIBILITY: The Assessment Department shall monitor the program and take charge of the over-all management and must ensure that all supervisory officials at National and Regional levels participating therein fully understand their respective duties as required in the program and that they carry them out completely and satisfactorily. The Collection Department shall provide assistance by ensuring that all collection personnel participating in the program fully understand their respective duties and that they are carried out completely and satisfactorily. The Management Planning Department shall provide guidance and technical assistance and such active participation by service units under its supervision as needed in the program. It shall develop and continue to improve necessary procedures and controls for locating non-filers and securing the filing of their delinquent tax returns. The Tax Information Division shall take charge of the overall monitoring of the publicity drive and tax consciousness campaign. It shall coordinate with Regional and Revenue District Offices in attaining these objectives. It shall provide the publicity materials and should utilize mass media techniques for widest area coverage. Regional Directors must ensure that the branch offices and revenue district offices under their respective regional jurisdictions fully understand their respective functions under the program and that they are carried out completely and satisfactorily. Revenue District Officers shall be fully responsible for the operation of the program within their respective districts. This shall include such factors as the indoctrination and orientation of revenue examiners, assignment of cases and their timely completion, case control and prompt and correct reporting on the program to their respective regional directors. As a preventive measure to minimize, if not entirely neutralize, errors in purging committed by personnel assigned in the preparation of the TRCP lists of non-filers, Revenue District Officers, before assigning the cases to their fieldmen, must review the TRCP lists and cross out names of individuals known or verified as filers but inadvertently included in the lists. Group Supervisors shall be responsible for the operation of the program within their respective groups. This shall include such factors as prompt assignment and action on cases, counseling in interview techniques, timely completion and correctness of reports submitted and all other aspects of the program which would normally be considered as a group function. They must ensure that fieldmen under them fully understand the objectives of the program and the important part they shall perform to assure success. VI. COMPLIANCE ANALYST TEAM (CAT): In order to give substance and invite favorable reception from the taxpaying public and so as to incite the highest degree of dedication from the revenue officials and employees participating in the program, a Compliance Analyst Team shall be formed in the National Office whose function is to inquire, evaluate and submit reports on the following points: 1. Performance of personnel assigned to the program. Commendations and incentive awards shall be given for outstanding performance. A study shall likewise be undertaken to look into the cause or causes as to why other employees do not have the motivation to work with equal dedication. 2. Compliance with policy statements, instructions and procedures. If there is a breakdown or failure to comply, studies should be made to determine why there was indifference or failure on the part of the employee concerned to understand and carry out his assigned duties. cdta 3. Effectiveness of the data utilized, procedures and controls used in securing the filing of delinquent returns. 4. Public reaction to the behavior of the fieldmen during the interview of non-filers; effectiveness of interview techniques; and improvements along the recommendations of the taxpaying public. VII. EFFECTIVITY: This Order shall take effect immediately. MISAEL P. VERA Commissioner of Internal Revenue