Suspension of Investigation of 1963 Income Tax Returns

March 5, 1964 REVENUE MEMORANDUM ORDER NO. 15-64 SUBJECT : Suspension of Investigation of 1963 Income Tax Returns TO : All Regional Directors, Chief Revenue Officers, Examiners, and Others Concerned: It has been observed from the reports submitted to this Office that the quotas given to Regional and Provincial Revenue Offices under "OPERATION MILLION TAX FILERS" have not been met and most likely would not be met by April 15, 1964, the deadline for the said operation. It was likewise observed that many field audit reports of 1958 income tax returns were submitted in the last days of February giving little time to the reviewing personnel to review the said reports objectively to the extent that many assessments were released to prevent prescription, although said assessments are doubtful of collection. An analysis of the results of "OPERATION COLLECTIONS" further show that the results were very far below the expectations of this Office. LLjur In view of the foregoing, and in order to utilize all personnel in the clearing of the backlog of old cases, the investigation of the 1963 income tax returns is hereby suspended until further instructions from this Office. To carry out the suspension and the clearing of backlogs in all offices, the following pointers should be observed by all officials concerned: 1. The 1963 income tax returns referred to, shall cover the income tax returns filed by: (a) individuals for the calendar year 1963; (b) partnerships and corporations filing income tax returns on a calendar year basis for the year 1963; and (c) partnerships and corporations filing income tax returns on a fiscal year basis which fiscal years end on the 1st day of any month from July 31, 1963 to June 30, 1964. 2. The Income & Business Tax Branch should be required to expedite the processing of all 1963 income tax returns including the separation of the originals from the duplicates and the classification of the duplicate copies in accordance with the standing instructions. 3. The duplicate copies of the income tax returns classified should not be distributed to the Revenue Districts but should be retained in the Income & Business Tax Branch until such time as the release of the returns is authorized. 4. The original copies of the income tax returns duly numbered and listed should be immediately forwarded to the Accounting Machines Branch for card punching, after which the originals should be forwarded to the Administrative Branch for filing. Care should be taken that the original copies are not lost in transit and in the files. 5. Any 1963 income tax return which have been distributed to Chief Revenue Officers and by the latter to Group Supervisor or examiners, should be recalled and a list of the said returns should be submitted to this Office not later than March 31, 1964. 6. All Chief Revenue Officers should return to the regional office all 1963 income tax returns received by them prior to this Revenue Memorandum Order and a list of such returns should be submitted to this Office not latter than March 31, 1964. Any 1963 income tax returns already distributed to the fieldmen should be recalled and likewise returned to the Chief Revenue Officer who shall in turn return them to the regional office and included in the aforementioned list. 7. Any request for immediate investigation due to dissolution, the taxpayer is leaving the country, or for any other reason should be forwarded to the National Office for decision. 8. All regional directors are required to submit to this Office not later than July 15, 1964 a list of the number of 1963 income tax returns filed in the region, classified in accordance with the previous instructions on the matter. A list should likewise be prepared showing the number of classes A, B, C returns in each province. 9. To keep the fieldmen busy during the period that they are not authorized to investigate the 1963 income tax returns, they should be required to devote their time to "OPERATION MILLION TAX FILERS", investigation of 1959 income tax returns, act on protested cases assigned to them, and collection of delinquent accounts previously assigned to them under "OPERATION COLLECTIONS" which were not terminated at the end of the said operation. Progress reports on the action taken hereon and the results thereof should be submitted to this Office every fifteen days from March 15, 1964. (SGD.) BENJAMIN N. TABIOS Acting Commissioner of Internal Revenue