Prescribing the Policies, Guidelines and Procedures for Payment Capability Rollout

October 13, 1998 REVENUE MEMORANDUM ORDER NO. 13-99 TO : All Internal Revenue Officers and Employees Concerned SUBJECT : Prescribing the Policies, Guidelines and Procedures for Payment Capability Rollout I. OBJECTIVES This order is issued to: A. To check the completeness and reliability of the taxpayer registration information prior to Return Processing rollout; B. To determine the readiness of the taxpayer in using the new tax forms; and C. To set policies and guidelines and establish procedures for the Payment Capability Rollout. II. DEFINITION OF TERM/S Payment Capability will allow collection data to be processed and be reflected to the correct taxpayer ledger account. This will involve validating taxpayer information in payment form against the registration information of the taxpayer. Taxpayer information which failed the validation will require either change in the registration information of the taxpayer or on the payment document filed. Return Capability will allow return data to be processed and be reflected to the correct taxpayer ledger account. This will involve validating the return filed by the taxpayer against their payment information. III. POLICIES A. The Payment Capability shall be released to the Revenue Data Center (RDC). All data processing and access under the Payment Capability shall be limited to the RDC. B. The release of the Payment Capability to the Revenue District Office (RDO) shall coincide with the Return Capability release when the intended benefit to the RDO will be realized (e.g. 1209 Collection report by ATC). C. The criteria in rolling out the payment capability to the RDC are as follows: 1. 100% AAB installation rate for the RDO 2. less than 2% payment uploading backlog for the RDO 3. less than 5% payment rejection rate for the RDO 4. less than 10% existing payment suspense rate per RDO at the RDC 5. at least 95% RDO TRU Phase I readiness 6. no blocker issues open 7. 100% completion of all mandatory requirements These criteria shall serve as indicator/guide in determining the readiness of the RDC to rollout the capability. D. Payments received prior to the Payment Capability rollout which have already been reported in the 1209 shall be archived. Only payment data received after the rollout shall be processed. E. Automatic liability shall be created for payments posted to the taxpayer ledger. IV. PROCEDURES A. The System Administrator, RDC shall archive payment data received prior to the Payment Capability rollout which have already been reported in the 1209. B. The Receipt and Control Section (RCS), Input and Control Division (ICD), RDC shall: 1. Receive original set of documents with diskette/s from AAB-Branch. The original set of documents includes Original Returns, Batch Control Summary (BCS) and BIR Form 2840 (External Media Transmittal Form, Annex A ). 2. Check the completeness of the documents received. If the documents are incomplete, 2a. Note the discrepancy on BIR Form 2840. 2b. Photocopy BIR Form 2840 and documents in question (return/s and/or BCS); attach photocopy of BIR Form 2840 to original documents submitted by AAB. 2c. Stamp documents submitted by AAB 'Received with discrepancy.' Retain the documents and resume processing once AAB has resolved discrepancy/ies noted on BIR Form 2840. 2d. Return original BIR Form 2840 and photocopy of documents in question to the concerned AAB-Branch. 3. Perform virus check on diskette/s received. If diskette/s is/are not clean, 3a. Note the discrepancy on BIR Form 2840. 3b. Photocopy BIR Form 2840 and attach photocopy to documents submitted by AAB. 3c. Stamp documents submitted by AAB 'Received with discrepancy.' Retain the documents and resume processing once AAB has submitted new diskette. 3d. Return original BIR Form 2840 together with the diskette/s to the concerned AAB-Branch. 4. Forward diskette/s to Computer Operations Network and Engineering (CONE) Department together with BIR Form 2840. 5. Forward BCS and original returns to the CBR Preprocessing Section, ICD. dctai C. The Computer Operations Network and Engineering (CONE), RDC shall: 1. Receive diskette/s and BIR Form 2840 from RCS, ICD. 2. Perform version check and integrity check on diskettes received. If the diskettes did not pass version check and/or integrity check, note discrepancy on BIR Form 2840. Otherwise, upload data to unix/ITS. 3. Forward diskettes that have been uploaded to ITS to the RCS, ICD for releasing to AABs. 4. Forward diskettes, which did not pass version check and/or integrity check, together with BIR Form 2840 and Payment Receipts Report to Bank Liaison Section (BLS), Collection Agents Performance Monitoring Division (CAPMD). 5. Generate reports such as Batch Exception Report, Late Batches Report, BCS Summary Report, Payment Suspense Report, etc. 6. Forward the Payment Suspense Report to the Accounts Evaluation Section (AES), Tax Account Division (TAD). 7. Forward the Batch Exception Report, List of Late Batches Report and BCS Summary Report to the Bank Performance Evaluation Section (BPES), CAPMD. D. The Bank Liaison Section (BLS), Collection Agents Performance Monitoring Division (CAPMD), RDC shall: 1. Receive diskettes together with BIR Form 2840 and Payment Receipt Report from CONE. llcd 2. Coordinate with AAB the resolution of discrepancy found during integrity check including penalty imposition. 3. Return diskette together with BIR Form 2840 and Payment Receipt Report to AAB. 4. Ensure that diskette/s which did not pass version and/or integrity check are replaced by banks within seven (7) days after receipt. 5. Receive from AAB replacement diskette together with BIR Form 2840 and forward to CONE for uploading to ITS. 6. Receive from CONE replacement diskette that have been uploaded to ITS and forward to the RCS, ICD for releasing to concerned AAB. 7. Receive from BPES, CAPMD Batch Exception Report, BCS Summary Report, List of Late Batches Report, and Request for TIN/Name Updates and send to concerned AABs. 8. Attend to inquiries of AABs on Limited Bank Data Entry System (LBDES) and other matters related to uploading of BCS Reports. E. The CBR Preprocessing Section, Input and Control Division (ICD), RDC shall: 1. Receive BCS and original return from RCS, ICD. 2. Identify and segregate batches for Bank Branch Performance Check. 3. Forward batches that will not undergo the Bank Branch Performance Check to the Correspondence and Archiving Section (CAS), Administrative Division. 4. Check return and BCS for procedural errors other than error code R007 (Payment on Return differs with Payment on Screen). LibLex 5. Document errors in BIR Form 2841 (Bank Branch Performance Statistics, Annex B ). 6. Initial BIR Form 2841 to indicate that batch has been checked. 7. Forward BCS and original returns and BIR Form 2841 to the CBR Data Capture Section, Data Capture Division (DCD). F. The CBR Data Capture Section, Data Capture Division (DCD), RDC shall: 1. Receive BCS and original returns and BIR Form 2841 from CBR Preprocessing Section, ICD. 2. Verify uploaded amount against amount on return. If there is a discrepancy, tick error code R007 on BIR Form 2841. 3. Initial BIR Form 2841 to indicate that batch has been checked. 4. If BIR Form 2841 has procedural errors, encode BIR Form 2841 using CBRDE004 and stamp BIR Form 2841 'Encoded'. Otherwise, send documents to the CAS, Administrative Division for custody and safekeeping. 5. Forward BCS and original returns with procedural errors to the BPES, CAPMD. G. The Bank Performance Evaluation Section (BPES), Collection Agents Performance Monitoring Division (CAPMD), RDC shall: 1. Receive BCS and original returns with procedural errors from CBR Data Capture Section, DCD for on-line and manual verification. 2. Receive Batch Exception Report, BCS Summary Report and List of Late Batches Report from CONE for on-line and manual verification. cdll 3. Verify Batch Exception Report, BCS Summary Report and Late Batches Report against BCS and returns. 4. Prepare report on errors committed by banks and corresponding penalty and forward to the Collections Program Division (CPD), Collection Service and Information Planning and Quality Service (IPQS). 5. Forward the verified Batch Exception Report, BCS Summary Report and Late Batches Report to the BLS, CAPMD. 6. Coordinate with concerned AABs regarding the procedural errors they have committed. 7. Forward BCS and original returns to the CAS, Administrative Division for custody and safekeeping after errors committed by banks have been resolved. H. The Information Planning, Policies and Standards (IPPS), IPQS shall: 1. Receive report on errors committed by banks and corresponding penalty from BPES, CAPMD, RDC. 2. Consolidate reports on errors committed by banks and corresponding penalty submitted by the RDCs. 3. Submit to CPD consolidated report on errors committed by banks and corresponding penalty. I. The Collection Programs Division (CPD), Collection Service shall: 1. Receive report on errors committed by banks and corresponding penalty from BPES, CAPMD, RDC. 2. Receive from IPPS, IPQS consolidated report on errors committed by banks and corresponding penalty. 3. Coordinate with concerned AABs resolution of procedural errors they have committed and corresponding penalty. 4. Submit report to BPES, CAPMD, RDC on the status of the procedural errors including penalties coordinated with AABs. J. The Correspondence and Archiving Section (CAS), Administrative Division shall: 1. Receive BCS and original returns from CBR Preprocessing Section, ICD, CBR Data Capture Section, DCD and BPES, CAPMD. 2. Label and store documents for easy retrieval and ensure proper safekeeping and security measures. 3. Act on inquiries and requests for certifications of true copies of documents and such other requests for data of which they have custody. K. The Accounts Evaluation Section (AES), Tax Account Division (TAD), RDC shall: 1. Receive Payment Suspense Report from CONE. 2. Verify and resolve on-line suspended payments. 3. Provide the concerned RDO with a weekly listing of suspended payment transactions which require taxpayer contact (i.e. unregistered tax type, TIN does not exist in RDO). 4. Follow-up with the concerned RDO the resolutions on the suspended payment transactions. 5. Submit to Rollout Assistance Unit (RAU), Quality Assurance Division (QAD) and Deputy Commissioner (DCIR), Information Systems Group (ISG) weekly report on the status of suspended payment transactions ( Annex C ). L. The Revenue District Office (RDO) shall: 1. Receive from AES, TAD, RDC weekly listing of suspended payment transactions which require taxpayer contact. 2. Communicate with taxpayers to verify the accuracy of their registration. 3. Submit to RDC weekly report on resolutions made on suspended payment transactions. V. REPEALING CLAUSE All other issuances and/or portions thereof inconsistent herewith are hereby repealed and amended accordingly. VI. EFFECTIVITY This Order takes effect immediately. (SGD.) BEETHOVEN L. RUALO Commissioner of Internal Revenue ANNEX A Taxpayer Record Update (TRU) Program Monitoring Sheet ANNEX B Bank Branch Performance Statistics ANNEX C Payment Suspense Resolution Status Report