Returns Processing System Pilot Site Pre-Conversion Activities

June 13, 1996 REVENUE MEMORANDUM ORDER NO. 14-96 TO : Regional Director, RR No. 6 - Manila Regional Director, RR No. 13 - Cebu Revenue District Officer, RDO No. 30 - Binondo Revenue District Officer, RDO No. 32 - Quiapo, Sampaloc, San Miguel Revenue District Officer, RDO No. 33 - Intramuros, Ermita, Malate Revenue District Officer, RDO No. 52 - Paraaque Revenue District Officer, RDO No. 81 - Cebu City North All Other Revenue Officers Concerned SUBJECT : Returns Processing System Pilot Site Pre-Conversion Activities I. BACKGROUND In the implementation of the Returns Processing System (RPS) on July 1, 1996, there is a need to validate taxpayer information on the current return (filed from July 1, 1996) against taxpayer information filed prior to pilot implementation. This will control and eliminate the delay in processing RPS Suspense Accounts. To do this, the necessary taxpayer data and documents must be available in the Manila and Cebu Information System Units before the implementation date. II. OBJECTIVES This Order is issued to : 1. Prescribe the pre-conversion activities required of the Pilot Sites. 2. Prescribe the guidelines and procedures in the retrieval and processing of tax returns needed. 3. Identify the return types to be retrieved. III. GUIDELINES AND PROCEDURES A. PILOT RDO 1. Retrieve the following returns filed prior to July 1, 1996 FORM OLD NEW FIRST DUE DUE DATE OF PURPOSE DESCRIPTION FORM FORM DATE UNDER NON-ITS RETRIEVAL ID ID ITS RETURN TO BE RETRIEVED Quarterly Individual Income Tax Return 1701Q 1701Q 2nd Qtr - 15 Aug 1st Qtr - 30 May Tax due data Quarterly Corporate Tax Return 1702Q 1702Q 2nd Qrt - 15 Aug 1st Qtr - 30 May Tax due data Monthly Value Review and Added Tax Return 2550A 2550M 25 Aug 1st Qtr verification of the Presumptive Input Tax Quarterly Value- April & May Data on Output Added Tax Return 2550 2550Q 20 July Monthly VAT Tax, Input Tax, Carry Over, Advance Payments and Withholding Tax Amount 2. Sort, classify and batch tax returns in accordance with RMO No. 55-94. However, in lieu of the required BCS, a Transmittal List shall be prepared to document the transfer to the Pilot Information System Units. This procedure shall ensure easy handling and retrieval for the Return Suspense Officer. 3. Every batch of returns shall be properly marked with the following: a. Form Type b. "For RPS Conversion" c. Destination 4. Forward the returns to the corresponding Information System Unit (ISU). Where the RDO is not within the same building of the ISU, only the photocopy of the returns shall be forwarded to the ISU. llcd B. PILOT INFORMATION SYSTEM UNIT 1. The Suspense Officer, after review and processing, shall send back the retrieved returns to the RDO's having jurisdiction or if return is just a photocopy, destroy the same. C. The on-line Return suspense function shall also require the retrieval of other return types filed prior to July 1, 1996, however these returns will be retrieved as they are required and only for review rather than data entry. These returns are: FORM DESCRIPTION OLD FORM ID NEW FORM PURPOSE ID Donors Tax Return 1805 1800 The previous return shall be retrieved to validate the "Total Prior Net Gifts During the Calendar Year" Capital Gains Tax Return The previous return shall be for Transactions Involving retrieved to validate the "Prior Shares of Stock 1701E-2 1707 Capital Gain/Loss During the Year" D For fiscal filers, late filers and other exceptions, retrieval shall be done as the need arises in processing Returns Suspense. E. For taxpayers wishing to amend returns filed prior to July 1, 1996, a copy of the old return shall be required in order to validate the previous payment made. IV. EFFECTIVITY This Order is one time action and shall take effect beginning June 24, 1996 until completion of the preceding task activities. (SGD.) LIWAYWAY VINZONS-CHATO Commissioner of Internal Revenue