Procedures on Docket and Tax Accounts Control

April 3, 1975 REVENUE MEMORANDUM ORDER NO. 21-75 TO : All Internal Revenue Officers and Others Concerned Tax accounts and their dockets are closed either by payment or by cancellation of the deficiency assessment or by a combination of both. If by payment, they can be closed in the office of the Revenue District Officer, in the collection Branch or in the Tax Accounts Division. They can be closed also in the Assessment Branch, in the Legal Branch, and in the Divisions under the Legal Department and under the Assessment Department, respectively, when the accounts are cancelled because of a valid protest or because the cases were lost in court. When tax dockets are closed, they are normally sent to the Records Division if the dockets were handled by any division in the National Office, or to the Administrative Branch if the dockets were handled by the Regional or District Offices. In the past, some Administrative Branches and sometimes the Records Division segregated the dockets to closed files without first charging them to the Collection Branch or to the Tax Accounts Division for the purpose of up-dating their accounts control devices such as the DPC list of delinquent accounts, BIR Form 40.00 for current or unlisted accounts, index cards for the dockets, and other accounting devices used by them. In order to place tax accounts and their corresponding dockets under proper control, the following chiefs of units shall adopt the following procedures: A. Chief, Records Division shall: 1. Charge to Tax Accounts Division all tax dockets closed by other divisions in the National Office. 2. File as closed case only those dockets confirmed as closed by the Chief, Tax Accounts Division. 3. File in alphabetical order the original of the accomplished form under paragraph B (6) below. Retain the duplicate copy of the same form in the docket. B. Chief, Tax Accounts Division shall: 1. Receive all tax dockets from the Records Division for appropriate action. 2. Post to the DPC list of delinquent accounts the information of payment (official receipt number, date, amount, and place of payment) received or derived from the reports submitted by field units or post to the DPC list of delinquent accounts the information of cancellation of the account (ATCA number and date) obtained from the docket if the same is DPC listed. 3. Insert to the DPC list the information of payment or cancellation if the account is not yet DPC listed; post the same information to BIR Form 40.00 if currently assessed and not yet DPC listed; to index card of tax docket; and to other accounting control devices used. 4. Charge the docket to the Income Tax Division or to the Business Tax Division or to the Specific Tax Department if the docket was closed but no ATCA was prepared. 5. Analyze carefully each docket whether there are more than one account assessed or whether there are more than one taxpayer investigated and see that the corresponding document to close the account is available or the information to close the account is posted to the docket, and posted to all accounting control devices used by the division. 6. Accomplish a transmittal form, sample of which is attached as "Annex A". When accomplished, the original and duplicate copies of said form shall be used to transmit the docket to the Records Division. The triplicate copy is retained and compiled on a monthly basis, and be counted at the end of each month to report the accomplishments made during the month. C. Chief, Administrative Branch shall have similar duties as that of the Chief, Records Division, and in addition thereto, he shall: 1. Charge for appropriate action all tax docket involving less than P5,000.00 to the Revenue District Officer concerned; and 2. Charge for appropriate action all tax dockets involving P5,000.00 but not over P20,000.00 to the Collection Branch. D. Chief, Collection Branch and Revenue District Coordinator shall have similar duties as that of the Chief, Tax Accounts Division in the matter of controlling tax accounts and their corresponding tax dockets, except that the charging of dockets shall be according to jurisdictional level. E. Chief, Administrative Unit of the district office shall have similar duties as that of the Chief, Administrative Branch and, therefore, he shall keep in close files dockets closed by payment or otherwise for accounts involving less than P5,000.00. The basic principle adopted in this order is that no tax docket shall be closed and sent to closed files unless that account it represents has been closed or posted in all accounting control devices used as enumerated above in the Tax Accounts Division or in the Collection Branch or in the Revenue District Office, and thereby make our monthly accomplishment report more reliable. cd The Revenue Regional Directors upon receipt of this order shall call a meeting of his Chiefs or Branches and Revenue District Officers to discuss the provisions of this order, and within five (5) days after each meeting, a certificate shall be submitted to the Revenue Operations Head (Collection) certifying that a meeting has been conducted to discuss the provisions of this order. This Order shall take effect immediately. MISAEL P. VERA Commissioner of Internal Revenue TAN-1601-593-5 ANNEX A ______________________ Date MEMORANDUM FOR The Chief, Records Division/Administrative Branch Please file as closed the docket of: NAME ___________________________________________________________ ADDRESS ________________________________________________________ ASS./DEMAND NO. ________________________________________________ DATE DUE _______________________________________________________ AMOUNT DUE ____________________________________________________ It has been closed by: Date Amount Place 1. ROR # _________ ____________ ____________ ____________ 2. BOR # _________ ____________ ____________ ____________ 3. TDM # _________ ____________ ____________ 4. SPL. OR # ______ ____________ ____________ ____________ 5. ATCA # ________ ____________ DPC listed and posted S/A Made Not DPC listed, posted to Noted/Inspected in BIR Form 40.00. the DPC list. ________________________ Chief, ___________________