Returns Processing Systems Pre-Conversion Activities

January 29, 1998 REVENUE MEMORANDUM ORDER NO. 19-98 SUBJECT : Returns Processing Systems Pre-Conversion Activities TO : The Regional Directors, RDC Heads, Revenue District Officers and All Other Revenue Officers and Officials Concerned I. BACKGROUND To minimize, if not totally-eliminate, delays in the processing of RPS Suspense Accounts, there is a need to validate taxpayer information on the current return against taxpayer information filed prior to roll-out. Thus, the necessary taxpayer returns must be made readily available by the Revenue District Office (RDO) upon request by the Revenue Data Center (RDC). II. OBJECTIVES This Order is issued to: 1. Prescribe the pre-conversion activities required; 2. Prescribe the guidelines and procedures in the retrieval and processing of tax returns; and 3. Identify the return types to be retrieved. III. GUIDELINES AND PROCEDURES A. AT THE REGIONAL OFFICE The Regional Director shall: 1. Disseminate the Revenue Memorandum Order (RMO) to the Officers concerned; and 2. Direct the Revenue District Officers to undertake necessary actions to carry-out the pre-conversion activities. B. AT THE REVENUE DATA CENTER (RDC) 1. The Suspense Officer (Error Handler) shall request, thru the RDC Head, the returns needed to resolve suspended returns. 2. The RDC head shall collate all the requests of the Suspense Officers (Error Handlers) and forward a list of requested returns to the respective RDOs. 3. The RDC Head, upon receipt of the requested returns from the RDOs, shall distribute them to the respective Suspense Officers. 4. After review and processing, the Suspense Officer (Error Handler) shall send back the retrieved returns (if original) to the RDOs having jurisdiction. If the returns are mere photocopies, the Suspense Officer (Error Handler) destroys them. LibLex C. AT THE REVENUE DISTRICT OFFICE (RDO) The Revenue District Officer shall direct the Head, Document Processing Section (DPS) to: 1. Retrieve the following returns: FORM DESCRIPTION OLD NEW PURPOSE OF FORM FORM RETRIEVAL NO. NO. Quarterly Individual Income 1701Q 1701Q Verify tax due data Tax Return Quarterly Corporate Tax 1702Q 1702Q Verify tax due data Return Monthly Value-Added Tax 2550A 2550M Review and verify Return Presumptive Input Tax Quarterly Value-Added Tax 2550 2550Q Determine data on Output Return Tax, Input Tax, Carry Over, Advance Payments and Withholding Tax amount Donors Tax Return 1805 1800 Validate the "Total Prior Net Gifts During the Calendar Year" from the previous return Capital Gains Tax Return for 1701E-2 1707 Validate the "Prior Capital Transactions Involving Gain/Loss During the Year" Shares of Stock from the previous return 2. Sort, classify and batch tax returns in accordance with the request of the Head, Revenue Data Center (RDC). Prepare a Transmittal List to document the transfer to the RDC. 3. Mark every batch of return with the following information: a. Form Type b. "For RPS Conversion" c. Destination 4. Forward the returns to the requesting RDC immediately. Where the RDO is not within the same location of the RDC, only the photocopy of the returns shall be forwarded. If the RDO fails to transmit the returns within ten (10) days from receipt of the request, the RDC will assign the suspended returns to the RDO for immediate resolution. D. Tax returns of fiscal filers, late filers and other exceptions shall be retrieved as the need arises. E. Taxpayers wishing to amend their returns filed prior to roll-out, shall be required to attach a copy of the old return to validate the previous payment made. IV. EFFECTIVITY This Order is a one-time action and the procedures herein prescribed shall be undertaken as part of the pre-roll out activities at the concerned RDO's roll-out. LIWAYWAY VINZONS-CHATO Commissioner of Internal Revenue