Establishing and Updating Taxpayers' Master File in Every Revenue District and Collection Agent's Office

May 10, 1982 REVENUE MEMORANDUM ORDER NO. 15-82 SUBJECT : Establishing and Updating Taxpayers' Master File in Every Revenue District and Collection Agent's Office TO : All Internal Revenue Officials and Employees Concerned I. Objectives : Revenue Memorandum Order No. 21-81 dated July 6, 1981, provided the redirection of the bureau's activities toward voluntary compliance. Along with this change, it is required upon every tax administrator to properly identify the taxpayers within his area of jurisdiction, notify the taxpayers of their tax liabilities before the deadline and periodically monitor their tax compliance. To better equip him and insure an effective campaign toward checking compliance, he must have complete and accurate information about the taxpayers within his jurisdiction as a foremost requirement. casia II. Policies and Procedures : In the attainment of the objectives of this order, the following policies and procedures are prescribed for compliance by all concerned. A. Every Revenue District Officer shall establish and maintain an up-to-date Taxpayers' Master File within his area of jurisdiction. In like manner, every Collection Agent must have a Taxpayers' Master File in every municipality to which he is assigned. B. The taxpayers, for purposes of the Master File, shall be classified and grouped into individuals, partnerships and corporations with the following prescribed cards which have been assigned definite colors to allow their easy identification. 1. BIR Form No. 2705-1, Taxpayer's Master Card (Individual) which includes those engaged in business or practice of profession. 2. BIR Form No. 2705-2, Taxpayer's Master Card (Partnership) 3. BIR Form No. 2705-3, Taxpayer's Master Card (Corporation) 4. BIR Form No. 2705 AA, Taxpayer's Record of Examination 5. BIR Form No. 2705 C, Withholding Tax Remittances & Returns aisa dc C. The Office of the Collection Agent shall maintain only the Taxpayer's Master Card for individuals, partnerships and corporations and the card for Withholding Tax on Wages/at Source. D. Each district or municipality shall maintain an up-to-date Taxpayers' Master List which shall serve as a register of all the taxpayers within his jurisdiction, classified in accordance with letter B above. The list shall contain the following information. 1. File Number 2. Name and Address of Taxpayer 3. Tax Account Number (TAN) 4. Industry Sector The taxpayers shall be listed in numerical ascending order in the Master List. At any given time, the last number in the Master List would indicate the number of taxpayers in the district or municipality. The taxpayer's number in the Master List shall be indicated as the file number in the corresponding Taxpayer's Master Card. E. Detailed guidelines and instructions in setting-up and maintaining the Taxpayers' Master File are attached to this Order (Attachment A) together with the sample forms. III. Repealing Clause This Revenue Memorandum Order supersedes or modifies previous circulars, memorandum orders or other issuances which are inconsistent herewith. cdt IV. Effectivity This Order takes effect upon approval. RUBEN B. ANCHETA Acting Commissioner TAN: A5239-J1139-A-O ATTACHMENT A INSTRUCTIONS AND GUIDELINES 1. A separate file shall be maintained for Taxpayer's Master Cards for individuals, partnerships and corporations. 2. The cards in each box shall be filed alphabetically. 3. The Taxpayer's Master Card shall be accomplished for every taxpayer engaged in business or the practice of profession. In addition, he/it may have the Withholding Tax card if he/it is a withholding agent and the Taxpayer's Record of Examination. In all cases, the Taxpayer's Master Card (TMC) shall be the first card with the Withholding Tax card and the Taxpayer's Record of Examination attached behind the TMC. 4. The color scheme to allow easy identification of the different cards shall be as follows: a. white card for TMC (Individual) b. light green card for TMC (Partnership) c. light yellow card for TMC (Corporation) d. pink card for Withholding Tax e. light blue card for Taxpayer's Record of Examination 5. a. All Taxpayer's Master Cards (individual, partnership, corporation) shall be accurately and completely accomplished by typing in or printing in the appropriate spaces pertinent information required. The data to be posted on the cards may be obtained from any of the following source documents - Tax Returns, BIR Form 809 (after reconciliation), 1231, Statement of Assets, Liabilities and Net Worth, 1701B, Alpha List, Registration of Business Name, etc. b. Everytime a tax is paid, such payment should be entered immediately on the appropriate Master Card. c. A file number shall be assigned every taxpayer. The number shall have the following components: (a) Revenue Region Number; (b) Revenue District Number; (c) Identification of the kind of taxpayer which shall be indicated by the following letters of the alphabet: I - Individual P - Partnership C - Corporation; (d) Serial number; and (e) Year taxpayer was registered. Ex. Mr. Juan dela Cruz, an individual taxpayer in Revenue District No. 35, Pasig, who was registered in 1982 and who shall be No. 201 in the list shall have the following file number: 4B-35-I-201-82 Should a taxpayer cease to fall within the jurisdiction of a district or municipality, his file number may be reassigned to another. His name shall likewise be cancelled in the master list to be replaced by the name of the taxpayer to whom his number has been re-assigned. In case the taxpayer transferred to another district/municipality, his card should be sent to the RDO/Collection Agent of his new residence. BIR Form No. 2705-1 BIR Form No. 2705-2 BIR Form No. 2705-3 BIR Form No. 2705 AA Taxpayer's Record of Examination Withholding Tax on Wages Withholding Tax Remittances and Returns