Prescribing the Policies and Procedures on the Resolution of Multiple and Identical Taxpayer Identification Numbers (TINs) of Taxpayers Belonging to the Same or Different Revenue District Offices (RDOs)

February 15, 2000 REVENUE MEMORANDUM ORDER NO. 11-00 TO : All Revenue Officials and Employees and Others Concerned SUBJECT : Prescribing the Policies and Procedures on the Resolution of Multiple and Identical Taxpayer Identification Numbers (TINs) of Taxpayers Belonging to the Same or Different Revenue District Offices (RDOs) I. OBJECTIVES : This Order is issued to: A. Ensure compliance with the required clean-up of multiple and identical TINs within the registration database; B. Establish measures to minimize/prevent occurrences of multiple and identical TINs; and C. Implement policies and procedures to effectively monitor multiple/identical TINs in the registration database. II. DEFINITION OF TERMS : A. Identical TIN the same TIN used by two or more taxpayers. B. Multiple TINs different TINs used by the same taxpayer. C. Retained TIN the TIN to be used by the taxpayer after the clean-up of registration database prcd D. Dropped TIN the TIN chosen not to be retained by the taxpayer in case of multiple TINs. E. Cancelled TIN the TIN deleted from the registration database in cases of multiple TlNs, which after verification does not belong to any valid taxpayer. prcd F. Deactivated TIN the TIN used by another taxpayer (incorrect owner), whose form and tax types will be closed by putting an end date by the concerned RDO. G Pre-Generated TlNs TlNs generated by ISOS released to RDOs to be issued to taxpayers. llcd H. Integrated Tax System (ITS) database electronic repository/storage of consolidated records of all registered taxpayers' data. I. Computerized RDO the Revenue District Office that is capable of performing on-line ITS activities including those RDOs with Registration System facilities only. llcd J. Non-computerized RDO the Revenue District Office that is still neither performing on-line ITS activities nor capable of accessing Registration system facilities. K. Old RDO RDO of the cancelled/deactivated TIN. L New RDO RDO of the retained TIN. III. POLICIES : A. All computerized Revenue District Offices (RDOs) shall be responsible for the required clean-up activity of multiple and identical TINs in the registration database. B. All non-computerized RDOs shall coordinate with the Systems Operations Division (SOD), Information Systems Operations Service (ISOS) for the clean-up activity of multiple and identical TINs of taxpayers under their jurisdiction. C. SOD, ISOS shall provide a list of multiple and identical TINs to the RDOs, including recommendations as to the TIN to be retained, for multiple TIN and the rightful owner of the TIN for identical TIN; and the issuance of new TIN, whenever applicable. D. RDOs shall confirm all identical TINs for deactivation to SOD, ISOS. E. All RDOs shall resolve all multiple/identical TINs without transactions within five (5) working days from receipt of the list of multiple/identical TINs. All multiple/identical TINs with transactions shall be. resolved by the old RDO within twenty (20) working days from receipt of the final evaluation of SOD. F. Separate logbooks shall be maintained by all RDOs for resolution of multiple and identical TlNs. G. All RDOs whether computerized or not, shall ensure that all taxpayer liabilities/cases are settled/closed in the records of the old TINs and transferred to the new/retained TINs before the cancellation/deactivation of multiple/identical TINs is performed. cdll H. Computerized RDOs shall effect the transfer of payments and/or re-encoding of taxpayer return data from the incorrect TINs to the new/retained TINs. I. Non-computerized RDOs shall manually transfer payments, transactions, liabilities and cases from the incorrect TINs to the new/retained TINs whether or not the taxpayers belong to the same RDO, attaching the corresponding ledger cards. llcd J. All RDOs shall perform the TIN cancellation process. K. The RDO of the cancelled TIN shall process all transactions on lines except Accounts Receivable (AR) cases which shall be turned over to the RDO of the retained TIN which shall manually process the same. L. The determination of the rightful owner of an identical TIN and the TIN to be retained for multiple TINs shall be based on a set of criteria. M. The rule for identical TIN shall prevail for taxpayers who have both identical and multiple TINs in the Registration database. cdll N. The TIN selected by the taxpayers shall be given first priority unless such TIN is already given to another based on the rules of identical TINs. O. The Taxpayer Assistance Service (TAS) shall recommend appropriate sanctions to be imposed on RDOs who fail to comply with the provisions of this RMO. IV. PROCEDURES : A. The Systems Operations Division (SOD), ISOS shall. 1. Generate listing of identical and multiple TIN occurrences for every RDO every 5th day of the month; 2. Verify the validity of the identical and multiple TINs issued using the databases of the RDC, NO-ITS and ISOS TIN Masterfile. 3. Perform initial evaluation of cases of identical TINs and multiple TINs, based on the criteria provided for in Sections IVB-I-3. 1. and IVB-II-4. 1.; 4. Determine and recommend the TINs to be cancelled after initial evaluation, if such TIN is not used by any taxpayer in case of multiple TINs; 5. Determine and recommend the TINs to be deactivated after initial evaluation, if such TIN is used by the incorrect taxpayer, in case of identical TINs; 6. Determine and recommend the TINs to be retained after initial evaluation, if such TIN belongs to the correct owner, in case of identical/multiple TINs; 7. Forward to the concerned RDOs within three (3) weeks after generation of the "List of Identical TINs" and "List of Multiple TINs," with the corresponding recommended courses of action; 8. Collate and evaluate the results of evaluation/verification from concerned RDOs for final resolution; LexLib 9 Forward to the concerned RDOs within three (3) weeks from date of generation for appropriate action, the final resolution (Annex "J") which was derived from their submitted evaluation and verification reports; 10. Cancel TIN upon receipt of a copy of Application for Registration Information Update (BIR Form 1905) from the concerned non-computerized RDO; cdlex 11. Perform the on-line registration database clean-up activity for non-computerized districts upon the written recommendation and confirmation of the concerned RDOs; 12. Monitor the clean up activity of the RDOs through the monthly "Status of Multiple and Identical TIN Clean Up" and "List of Cancelled/Deactivated TINs and Transferred Taxpayer Records"; and cdlex 13. Refer to TAS all RDOs that are unable to comply with the provisions of this RMO. B. The Computerized RDO shall: I. For Identical TlNs: 1. Record the error of identical TIN occurrences in a logbook intended for such errors (Annex "A") 2. Contact and notify taxpayers of the identical TIN occurrences (Annex "C") and secure from them documents to prove ownership of the TIN; LibLex 3. Verify and: evaluate the SOD, ISOS' recommended courses of action on the resolution of identical TINs on a case to case basis; 3.1. If a taxpayer has identical records in the different RDC databases, undertake the following verification and evaluation rules using the table below as a guide: RANK CRITERIA LEVEL PRIORITY 1. Taxpayer Type 1. Business including GOCCs 1 GAIs and LGUs 2. Local Employee 2 3. One Time Taxpayer 3 4. E.O 98 4 2. Mode of Entry 1. ITS 1 2. TRU 2 3. AUTOREG 3 3. Number of Transactions Greatest Number 4. Date of Registration with BIR Earliest Date 5. Record likewise found in ISOS TIN Masterfile 3.2. If taxpayer does not qualify in criteria level priority 1, proceed to the next criteria level until a resolution can be achieved; 4. Accomplish a routing slip (Annex "E") for monitoring of the clean up activity and corrections being made; 5. Send results of verification and evaluation to SOD, ISOS within fifteen (15) working days for appropriate action; 6. Receive final evaluation of identical TINs from SOD, ISOS for appropriate action: cdlex 6.1 If the district having jurisdiction over the taxpayer is adjudged to be the incorrect owner of the TIN; 6.1.1. Deactivate identical TIN of the incorrect owner upon receipt of a copy of Application for Registration Information Update (BIR Form 1905). llcd 6.1.2. Issue pre-generated TIN and encode all registration information in the ITS. Adjust the fields "Registration Date", "Filing Start Date" and Accounting Period Effective Date" to reflect the dates appearing in the deactivated TIN. 6.1.3. Issue to the taxpayer a certification (Annex "K") duly signed by the RDO, regarding the resolution made on the identical TIN-scenario and at the same time indicating the new TIN issued. Require them to submit an inventory of unused invoices/receipts bearing the deactivated TIN for stamping of the new TIN on said invoices/receipts; 6.1.4. Transfer all payments, transactions, liabilities and cases from the to-be-deactivated TIN to the new TIN on line. 7. Submit the monthly "Status of Multiple and Identical TIN Clean Up" (Annex "F") to the Taxpayer Assistance Service (TAS) and Systems Operations Division (SOD), ISOS on or before the twenty fifth (25th) day of the following month. Attach the "List of Cancelled/Deactivated TINs and Transferred Taxpayer Records" (Annex "G") as evidence of said clean up. II. For Multiple TINs: 1. Record the error of multiple TIN occurrences in a logbook intended for such errors (Annex "B"); 2. Contact and notify taxpayers of the multiple TIN occurrences (Annex "D") and to choose only one TIN for future transactions. 3. Verify and evaluate the SOD, ISOS' recommended courses of action on the resolution of multiple TINs on a case to case basis; 4. Perform the verification and evaluation process by using the routing slip (Annex "E") as the basis for monitoring; 4.1 If taxpayer has multiple records in the different RDC databases, undertake the following verification and evaluation rules by using the table below as a guide: 1. Taxpayer Type 1. Business including GOCCs 1 GAIs and LGUS 2. Local Employee 2 3. One Time Taxpayer 3 4. E.O 98 4 2. Mode of Entry 1. ITS 1 2. TRU 2 3. AUTOREG 3 3. Number of Transactions Greatest Number 4. Number of Branches Greatest Number 5. Date of Creation Earliest Date 6. Type of RDO 1. Computerized 1 2. Non-Computerized 2 6. The TIN that is likewise found in ISOS TIN Masterfile 5. Send results of verification and evaluation to SOD, ISOS within fifteen ( 15) working days for appropriate action; 6. Receive final evaluation of multiple TINs from SOD, ISOS for appropriate action: 6.1. If the district has jurisdiction on the TIN to-be-cancelled; 6.1.1. Require the taxpayer to submit an inventory of unused invoices/receipts bearing the cancelled TIN for the stamping of the retained TIN on such invoices/receipts. Provide a copy of the inventory of unused invoices/receipts to the correct RDO of the retained TIN; cdlex 6.1.2. Submit to SOD, ISOS a copy of the Application for Information Update (BIR Form 1905) of the TIN to be cancelled duly accomplished and signed by the RDO or the ARDO; 6. 1.3. If the TIN to-be-dropped has been verified to be owned by another taxpayer not yet found in ITS database but existing in the ISOS TIN Masterfile: LibLex 6.1.3.1. Modify existing taxpayer name of the TIN to-be-dropped based from the existing data in the ISOS TIN Masterfile to effect the correct taxpayers' name: and 6.1.3.2. Place end dates on the form and tax types. llcd 6.1.4. If the TIN to be cancelled belongs to a head office with branches, perform the following: 6.1.4.1. Cancel the dropped TIN of the head office. Require them to inform its branches of the cancelled TIN; 6.1.4.2. Require the taxpayer to submit an inventory of unused invoices/receipts bearing the cancelled TIN for his stamping of the new TIN on said invoices/receipts (applicable to both the head office and branches); 6.1.4.3. Submit a confirmation notice (Annex "H") to concerned RDO for the transfer of payments and re-encoding of all document transactions previously recorded in the cancelled TIN to the retained TIN, if applicable; 6.1.5 Perform TIN cancellation process. 6.1.5.1. For TIN cancellation of head office: 6.1.5.1.1. Place end date on the form type and tax type using the "Modify" function; 6.1.5.1.2. Perform the "Cease Registration" function in accordance with the procedures provided for in the Registration Operations Manual; and 6.1.5.1.3. Perform "Cancel TIN" function in accordance with the procedures provided for in the Registration Operations Manual. 6.1.5.2. For TIN cancellation of a branch code if given to a head office or incorrect branch: 6.1.5.2.1. Place an end date on the form type and tax type using the "Modify" function; and 6.1.5.2.2. Perform "Cancel TIN" function in accordance with the procedures provided for in the Registration Operations Manual. 7. Submit the monthly "Status of Multiple and Identical TIN Clean Up" (Annex "F") to the Taxpayer Assistance Service (TAS) and Systems Operations Division (SOD), ISOS on or before the twenty fifth (25th) day of the following month. Attach the "List of Cancelled/Deactivated TINs and Transferred Taxpayer Records" (Annex "G") as evidence of said clean up. LexLib C. The Non-Computerized RDOs shall. I. For Identical TINs: 1. Record the error of identical TIN occurrences in a logbook intended for such errors (Annex "A"); 2. Contact and notify taxpayer of the identical TIN occurrences (Annex "C") and secure from them documents to prove ownership of the TIN; 3. Verify and evaluate the SOD, ISOS recommended courses of action on the resolution of identical TlNs on a case to case basis; 3.1. If a taxpayer has identical records in the different RDC databases, undertake the following verification and evaluation rules using the table below as a guide: prcd RANK CRITERIA LEVEL PRIORITY 1. Taxpayer Type 1. Business including GOCCs 1 GAIs and LGUs 2. Local Employee 2 3. One Time Taxpayer 3 4. E.O 98 4 2. Mode of Entry 1. ITS 1 2. TRU 2 3. AUTOREG 3 3. Number of Transactions Greatest Number 4. Date of Registration with Earliest Date ' BIR 5. Record likewise found in ISOS TIN Masterfile 3.2. If taxpayer does not qualify in criteria level priority 1, proceed to the next criteria level until a resolution can be achieved; LibLex 4. Accomplish a routing slip (Annex "E") for monitoring of the clean up activity and corrections being made; 5. Send results of verification and evaluation to SOD, ISOS within fifteen ( 15) working days for appropriate action; 6. Receive final evaluation of identical TINs from SOD, ISOS for appropriate action; 6.1 If the district having jurisdiction over the taxpayer is adjudged to be the incorrect owner of the TIN; 6.l.1. Issue pre-generated TIN to the taxpayer and encode all registration information in the fox-pro. cdlex 6.1.2 Issue to the taxpayer a certification (Annex "K") duly signed by the RDO, regarding the resolution made on the identical TIN scenario and at the same time indicating the new TIN issued. Require them to submit an inventory of unused invoices/receipts bearing the deactivated TIN for stamping of the new TIN on said invoices/receipts; 6.1.3. Manually transfer payments, transactions, liabilities and cases from the to-be- deactivated TIN to the new TIN; 6.l.4. Submit to SOD, ISOS Application for Registration Information Update (BIR Form 1905) of the TIN to be deactivated stating the purpose for such action duly accomplished and signed by the RDO or the ARDO; 7. Submit the monthly "Status of Multiple and Identical TIN Clean Up" (Annex "F") to the Taxpayer Assistance Service (TAS), and SOD, ISOS on or before the twenty fifth (25 ) day of the following month. Attach the "List of Cancelled/Deactivated TINs and Transferred Taxpayer Records" (Annex "G") as evidence of the clean up. II. For Multiple TINs: 1. Record the error of multiple TIN occurrences in a logbook intended for such errors (Annex "B") 2. Contact and notify taxpayers of the multiple TIN occurrences (Annex "D") and to choose only one TIN for future transactions; prcd 3. Verify and evaluate the SOD, ISOS recommended courses of action on the resolution of multiple TINs on a case to case basis; 4 Perform the verification and evaluation process by using the routing slip (Annex "E"), as the basis for monitoring; LexLib 4.1. If taxpayer has multiple records in the different RDC databases, undertake the verification and evaluation rules by using the table below as a guide; 1. Taxpayer Type 1. Business including GOCCs 1 GAIs and LGUs 2. Local Employee 2 3. One Time Taxpayer 3 4. E.O 98 4 2. Mode of Entry 1. ITS 1 2. TRU 2 3. AUTOREG 3 3. Number of Branches Greatest Number 4. Date of Creation Earliest Date 5. Type of RDO 1. Computerized 1 2. Non-Computerized 2 6. The TIN that is likewise found in ISOS TIN Masterfile 5. Send results of verification and evaluation to SOD, ISOS within fifteen (15) working days for appropriate action; llcd 6. Receive final resolution of multiple TINs from SOD, ISOS for appropriate action: 6.1 If the district has jurisdiction on the TIN to-be-cancelled: 6.1.1. Manually transfer payments, transactions, liabilities and cases from the cancelled TIN to the retained TIN; 6.1.2. Require the taxpayer to submit an inventory of unused invoices/receipts bearing the cancelled TIN for the stamping of the retained TIN on such invoices/receipts. Provide a copy of the inventory of unused invoices/receipts to the correct RDO of the retained TIN; LibLex 6. 1.3. Accomplish Form 1905 for the TIN to be cancelled/dropped, stating the purpose for such action and have it signed by the Assistant Revenue District Officer (ARDO) or the Revenue District Officer (RDO); 6.1.4. Indorse accomplished Form 1905 to SOD, ISOS for cancellation/modification of TINs identified for cancellation/modification; 6.1.5. Request SOD, ISOS for modification of taxpayer data of the dropped TIN which has been verified to be owned by another taxpayer not yet found in ITS database but is existing in the ISOS TIN Masterfile and for the cancellation of TlNs identified for cancellation prcd 6.1.6. Submit a confirmation notice (Annex "H") to SOD, ISOS of the TIN to be cancelled. 7. Submit the monthly "Status of Multiple and Identical TIN Clean Up" (Annex "F") to the Taxpayer Assistance Service (TAS), and SOD, ISOS on or before the twenty fifth (25th) day of the following month. Attach the List of Cancelled/Deactivated TINS and Transferred Taxpayer Records" (Annex "G") as evidence of the clean-up. D. The Taxpayer Assistance Service (TAS) shall: 1. Recommend to the Internal Security Division the following penalties to the RDOs who fail to comply with the provisions of this RMO: 1st Offense: Reprimand 2nd Offense: Suspension of 30 days 2. Settle conflicting issues arising between two districts. 3. Set standards for Key Performance Indicator (KPI). V. EFFECTIVITY : This Order takes effect immediately. SGD.) DAKILA B. FONACIER Commissioner of Internal Revenue ANNEX A ANNEX B ANNEX C Notification for Identical TIN ANNEX D Notification for Multiple TIN ANNEX E Routing Slip ANNEX F Status of Multiple and Identical TIN Clean Up ANNEX G List of Cancelled/Deactivated TINs and Transferred Taxpayer Records ANNEX H Confirmation Notice ANNEX I Notification of Deactivated/Cancelled TIN ANNEX J Evaluation Sheet for Identical/Multiple TINs ANNEX K BIR Form No. 1905 - Application for Registration Information Update Quezon City CERTIFICATION Verification of BIR offices' records reveal that Mr./Ms. _______________________________________________________________ is using TIN ____________________ with Mr./Ms. __________________. It is however determined that _____________________________________ is the rightful owner of said TIN. Thus, this Office is issuing TIN ______________________ to Mr./Ms. ________________ which he/she will use for future transactions. This certification is issued for whatever purpose it may serve. ________________________ Revenue District Officer