Internal Revenue Tax Liabilities for 1981 Shall Not be Investigated

July 8, 1982 REVENUE MEMORANDUM ORDER NO. 25-82 SUBJECT : Internal Revenue Tax Liabilities for 1981 Shall Not be Investigated TO : All Internal Revenue Officers and Others Concerned 1. Except in cases where the undersigned has specifically authorized, internal revenue tax liabilities for 1981 shall not be investigated by either the investigating units in the National Office or in the Regional Offices until such investigation is authorized by the undersigned in a subsequent Revenue Memorandum Order to be promulgated. Disciplinary action shall be taken against any revenue official or officer involved in or responsible for violation of or non-compliance with this directive. casia 2. Initial and confirmed reports from the Regional Offices indicate a decline in collection of revenues from income tax, particularly from taxpayers engaged in the manufacture of goods and/or the sale of services. 3. In order to avert further unfavorable trend in revenue collections and to offset partly, if not totally, the revenue loss arising from unjustified reduction in internal revenue tax payments by taxpayers, income and percentage tax returns for 1980 showing material decrease in income tax liabilities should be given priority in audit and investigation. Revenue officers in the National and Regional Office should undertake a more thorough and rigid investigation of the business tax liabilities, as well as income tax liabilities, of taxpayers whose income tax payments have declined in 1980. These returns should therefore be segregated for priority in issuance of authorities to investigate 1980 tax return upon promulgation of the order (a) prescribing an updated list of taxpayers which will come under the jurisdiction of the National Office and (b) authorizing the audit of 1981 income and other internal revenue tax returns. cd 4. This Revenue Memorandum Order shall take effect immediately. RUBEN B. ANCHETA Acting Commissioner