Amendments and Inclusions to Revenue Memorandum Order Nos. 33-82 and 2-83 under the Second Phase of "Operation Linis"

March 16, 1983 REVENUE MEMORANDUM ORDER NO. 09-83 SUBJECT : Amendments and Inclusions to Revenue Memorandum Order Nos. 33-82 and 2-83 under the Second Phase of "Operation Linis" TO : All Operation Linis Task Forces, Revenue Service Chiefs, Revenue Regional Directors, Revenue District Officers and Others Concerned I. PURPOSE There is an insistent clamor from "Operation Linis" Task Forces at all levels, as well as from the taxpaying public, to simplify the manner of computing the amount of taxes to be paid in the abatement or compromise of tax delinquencies under "Operation Linis". Likewise, the resolution of issues concerning the treatment of tax delinquencies under "Operation Linis" arising from (1) the issuance of dishonored checks in payment of internal revenue taxes, and (2) the implementation of the New Withholding Tax System, requires immediate attention for the information, guidance and faithful compliance by all concerned. II. AMENDMENTS AND INCLUSIONS The following amendments and inclusions to Revenue Memorandum Order Nos. 33-82 and 2-83 dated October 8, 1982 and January 31, 1983, respectively, are hereby promulgated in the proper implementation of all issuances under "Operation Linis": 1. The bases of the computation of the amounts to be paid in the abatement/compromise of delinquent accounts under this Program are the taxes and increments due as they appear in the IBM and Form 40.00 accounts. In other words, updating of the increments due up to the day of payment is no longer required. This method would do away with the complicated computation of interests and other charges to be added to the accounts due as indicated in said lists of delinquent accounts, and would likewise be more acceptable to delinquent taxpayers who desire to take advantage of this liberalized way of settling their tax liabilities. What remains to be done by the different task forces is to multiply the taxes due including the increments appearing on the IBM and Form 40.00 Accounts by the percentages set forth under Section III - JURISDICTIONAL RESPONSIBILITY - of RMO 2-83. The product thereof is the sum to be paid by the taxpayer. 2. In case part of the tax delinquency has already been paid, the outstanding balance thereof shall be the basis of the computation as detailed above. 3. Dishonored checks in payment of internal revenue taxes shall not be the subject of abatement or compromise. Full settlement of the tax liability, including increments subject to delinquency up to the day of payment must be required. 4. Likewise, withholding tax liabilities are not entitled to abatement or compromise. Settlement thereof shall include the collection of surcharges, interests and compromise penalties incident to violations of the Withholding Tax Laws and Regulations. Internal revenue taxes withheld by withholding agents partake of the nature of trust funds for the Government and failure to remit the same is a criminal offense. III. REPEALING CLAUSE The provisions of Revenue Memorandum Order Nos. 33-82 and 2-83, dated October 8, 1982 and January 31, 1983, respectively, and other issuances inconsistent herewith are hereby repealed or modified accordingly. IV. EFFECTIVITY This Order shall take effect immediately. (SGD.) RUBEN B. ANCHETA Acting Commissioner