Addendum to Revenue Memorandum Order No. 9-97 on the Completion of TRU Phase II in the Non-ITS Converted Revenue District Offices

January 30, 1998 REVENUE MEMORANDUM ORDER NO. 13-98 SUBJECT : Addendum to Revenue Memorandum Order No. 9-97 on the Completion of TRU Phase II in the Non-ITS Converted Revenue District Offices TO : All Revenue District Officers of the Non-ITS Converted Revenue District Offices and Others Concerned I. OBJECTIVES This Order is being issued for the following purposes: 1. To promulgate additional operational policies for the implementation of Taxpayer Record Update for Taxpayers Earning Pure Compensation Income, also known as TRU Phase II, in non-Integrated Tax System (ITS) converted Revenue District Offices (hereinafter referred to as the "District Offices"); and 2. To provide supplementary procedures for the processing of TRU Forms by personnel of the District Offices. II. GENERAL POLICIES AND GUIDELINES The following policies and guidelines shall be observed in the processing of TRU Forms, in addition to those previously set forth in RMO No. 9-97: A. The deadline for the completion TRU Phase II shall be on a staggered basis, depending on the rollout date of the District Office. Based on the 1998 ITS Mass Rollout Schedule, the deadline for completion of TRU Phase II in the following District Offices are: Deadline for TRU Phase II Transmittal of Rollout Date RDO Deadline Forms to ISOS June 1, 1998 040 Cubao March 15, 1998 March 31, 1998 027 Caloocan 053 Las Pias 082 South Cebu July 1, 1998 024 Valenzuela April 30, 1998 May 15, 1998 046 Cainta 043 Pasig August 1, 051 Pasay City May 30, 1998 June 15, 1998 1998 044 Taguig 045 Marikina 080 Mandaue September 1, 026 Malabon July 15, 1998 July 31, 1998 1998 028 Novaliches 038 North QC October 1, 041 Mandaluyong August 31, September 15, 1998 042 San Juan 1998 1998 034 Paco-Pandacan 031 Sta. Cruz November 1, 029 Tondo September 30, October 15 1998 025 Malolos 1998 1998 004 Calasiao, West Pangasinan 083 Talisay To provide sufficient time for the screening and validation of forms, District Offices are given approximately two (2) weeks after the deadline to forward screened/validated 1902 forms (Application for Registration For Individuals Earning Purely Compensation Income, OCWs/Other Non-resident Citizens) to the Information Systems Operations Service (ISOS) for encoding. The deadline for completion of TRU Phase II at the other District Offices not included in the table shall be released in a separate memorandum. These District Offices are encouraged to complete TRU Phase II as soon as possible. Validation/screening and transmittal of forms to ISOS shall be done regularly upon the receipt of the forms by the District Offices. Forms not forwarded to ISOS by the deadline for transmittal shall be encoded by the concerned District Office directly to ITS after its rollout. B. All RDO TRU Teams shall inform employers within their jurisdiction that the 1902 forms of all their employees must be submitted to their respective District Offices on or before the deadline for completing TRU Phase II at the District Office, with or without the attachments (e.g., birth certificates, marriage contracts) prescribed under Section IV-A of RMO No. 9-97, dated March 6, 1997. Submission of required attachments may follow within six (6) months of the submission of 1902 forms to the District Office. C. All required attachments shall remain in the custody of the District Offices and shall be filed alphabetically according to the taxpayer's last name. D. All duly-accomplished 1925 Forms (TIN Card Capture Forms) shall also remain in the custody of the District Offices and shall be filed alphabetically according to the taxpayer's last name, until requested by the National Office for processing of TIN cards. III. PROCEDURES A. Conducting TRU Phase II Briefings for Employers 1. To increase awareness of the TRU Program, all District Offices shall conduct TRU briefings as often as necessary for employers within their jurisdiction. Employers may be identified from the latest compliance report on the submission of Form 1604 (Annual Information Return of Income Tax Withheld on Compensation, Expanded and Final Withholding Taxes, previously Form 1743IR) at the District Office. Each District Office shall ensure that the employers are advised to submit the 1902 forms of their employees on or before the prescribed deadline. 2. To initially identify which employers have yet to submit the 1902 forms of their employees, each District Office may cross-reference the compliance report on the submission of Form 1604 with any of the following documents: a. The TRU Monitoring Sheets (Attachment A) submitted by employers, pursuant to RMO No. 9-97; b. The TRU Program Worksheet (Attachment B) prepared by the District Office, as prescribed by RMO No. 9-97; or c. Any other document or accomplishment report prepared by the District Office to monitor the submission of 1902 forms by employers. The number of employers who have submitted 1902 forms shall be compared to the total number of employers, based on the compliance report on the submission of Form 1604, to determine the degree of each District Office's completion of TRU Phase II. 3. Upon submission of 1902 forms by a particular employer, the District Office concerned shall immediately record such submission in the TRU Program Worksheet, and screen the submitted forms in accordance with the screening and validation procedures below. B. Screening and Validation of 1902 Forms 1. In accordance with the Checklist of Activities for the Receipt and Verification of TRU Forms prescribed under RMO No. 9-97, the RDO TRU Validation Teams shall screen all 1902 forms, as part of the initial validation process. Such screening shall ascertain the following: a. Completeness of information required by each data field, including the mandatory fields to be accomplished by revenue personnel, such as the Municipality Code, RDO Code, and Attachment Complete ? fields; b. Consistency of the information provided in the accomplished form; and c. Affixture of the required signatures in the form. The TRU Validation Team shall make use of the Job Aid for Validating Form 1902 (Attachment C), as a reference in the screening of 1902 forms. 2. The Revenue Officers/Group Supervisors of each District Office's TRU Validation Team shall affix their initials to each screened TRU Form, to attest that it has passed the initial validation process. Any forms found to be incomplete, or incorrectly accomplished, shall, in compliance with the procedures set forth in the Checklist of Activities specified in RMO No. 9-97, be returned to concerned employer for corrections, with appropriate details on the incorrect or missing information. 3. All screened 1902 forms shall be grouped and batched according to employer, with each batch filed alphabetically according to the taxpayer's last name. 4. The District Offices shall segregate the old 1902 forms (revised March 1996), together with their corresponding Form 2305 Exemption Certificate), from the new 1902 forms (revised March 1997/May 1997), when preparing the batches of forms. C. Transmittal of 1902 Forms to ISOS 1. Each District Office shall transmit all 1902 forms to ISOS for encoding on or before the District Office's deadline for transmittal of forms, or approximately two (2) weeks after the TRU Phase II deadline at the District Office. 2. The transmitted forms shall be accompanied by a Transmittal Letter certified by the Revenue District Officer concerned, stating that the transmitted forms have been duly screened/validated in accordance with the guidelines and procedures set forth in this RMO. D. Encoding of Forms 1. ISOS shall prioritize the encoding of 1902 forms and uploading of records according to the rollout date of the District Offices. 2. ISOS shall complete the encoding of all 1902 forms received from a District Office on or before the rollout date of the District Office. 3. All records which were suspended upon uploading to ITS shall be returned by ISOS to the District Office concerned, for resolution and encoding directly to ITS after District Office's rollout. IV. REPORTING REQUIREMENTS All District Offices shall continue the submission of the TRU Phase II Weekly Status Report to the TRU Office at the 6th Floor, BIR National Office. District Offices shall use the revised format presented in Attachment D to prepare the report. The Status Report should be received by the TRU Office not later than Tuesday of the week following the date of the Report. V. EFFECTIVITY This Order shall take effect immediately. LIWAYWAY VINZONS-CHATO Commissioner of Internal Revenue ATTACHMENT A ATTACHMENT B ATTACHMENT C