Revised Guidelines and Procedures Regarding Issuance of Tax Verification Notices (TVNs), Tax Clearance Certificates (TCLs) and Certificates Authorizing Registration (CARs) in the Revenue District Offices

May 22, 2001 REVENUE MEMORANDUM ORDER NO. 13-01 SUBJECT : Revised Guidelines and Procedures Regarding Issuance of Tax Verification Notices (TVNs), Tax Clearance Certificates (TCLs) and Certificates Authorizing Registration (CARs) in the Revenue District Offices TO : All Internal Revenue Officers and Others Concerned I. Objectives 1. To improve operational efficiency and taxpayer service by facilitating the issuance of Tax Verification Notices, Tax Clearances and Certificates Authorizing Registration relative to the transfer of real property and/or shares of stock in a domestic corporation not traded in the stock exchange through sale, exchange or other disposition; and 2. To prescribe the revised guidelines and procedures in the issuance of TVNs, TCLs and CARS. II. Guidelines and Procedures 1. Pre-numbered TVNs and CARs shall be requisitioned by the Revenue District Officers from the Administrative Division of the concerned Regional Offices which in turn shall requisition the same from the Accountable Forms Division of the National Office. 2. In accordance with Section II of RMO NO. 33-99, TVNs shall be issued for the verification and processing of non-audit cases requiring the immediate issuance of TCLs/CARS and for cases not covered by the audit threshold under the existing audit programs being implemented by the Revenue District Offices. 3. TVNs shall be signed and issued by the Revenue District Officer in order to facilitate the verification and processing of the aforementioned tax returns. 4. One TVN shall be issued for each taxable year/period under verification. The practice of indicating "unverified prior years" on the TVN is prohibited. 5. In case there is a deficiency tax as a result of the verification of the tax return and the taxpayer agrees to pay the same, a Payment Form shall be signed and issued by the revenue official who signed the TVN. This is applicable for both computerized and non-computerized offices. 6. The TVN Register shall be maintained and updated at the Revenue District Offices. 7. As a clarification to Section H of FLMO No. 66-99, TCLs/CARS shall be issued by the Revenue District Office having jurisdiction over the location of the real property being transferred. For this purpose, the following guidelines shall be followed: 7.1 In relation to the issuance of TCL/CAR arising, from the processing of donor's/estate tax returns involving transfer of real property, the RDO having jurisdiction over the property being transferred shall honor the Confirmation Letter duly issued by the Regional Director covering the RDO which processed the return and shall cause the issuance of the corresponding TCL/CAR. Likewise, a duly issued Confirmation Letter by the ACIR-Large Taxpayers Service shall be the basis of the concerned RDO to effect the issuance of TCL/CAR. 7.2 Where the estate/donor's tax case is covered only by a TVN and where the real property being transferred is, located within the RDO required to receive and process the return, the review of the case shall be prioritized by the Assessment Division, which review shall not exceed five (5) days from receipt of the docket. TcIaHC 8. All periodic reports pertaining to the issuance of TVNs, TCLs and CARs shall be submitted by the Revenue District Officers to the ACIR-Assessment Service, copy furnished the Regional Directors, where applicable, in accordance with the due dates specified in RMO Nos. 33-99, 66-99, 18-2000, 24-2000 and 30-2000. III. Repealing Clause The provisions of RMO Nos. 33-99, 36-99, 66-99, 67-99, 18-2000, 24-2000 and 30-2000 inconsistent herewith are hereby modified or repealed accordingly. IV. Effectivity This Revenue Memorandum Order shall take effect immediately. (SGD.) RENE G. BAEZ Commissioner of Internal Revenue