Procedure in the Receipt and Processing of Estate and Donor's Gift Tax Returns

July 26, 1982 REVENUE MEMORANDUM ORDER NO. 26-82 SUBJECT : Procedure in the Receipt and Processing of Estate and Donor's Gift Tax Returns TO : All Revenue Regional Directors, Revenue District Officers, Collection Agents and Others Concerned To facilitate the processing of estate and donor's gift tax returns and in order to provide a complete data on transfer tax returns filed, the following procedures are hereby promulgated. I. Receipt and Handling of Returns : A. Office of the Collection Agent or Authorized Municipal Treasurer . All estate and donor's tax returns (original and duplicate) received shall be forwarded to the Office of the Regional Director within five (5) days from receipt thereof for numbering and processing. casia B. Office of the Revenue District Officer . All estate and donor's tax returns (original and duplicate) received shall be forwarded to the Office of the Regional Director within five (5) days from receipt thereof for numbering and processing. C. Office of the Regional Director . All estate and donor's tax returns (original and duplicate) received shall be assessed and numbered in accordance with Paragraph II hereof and distributed as follows: 1. Original To be forwarded to the Data Processing Center. All the original copies of the returns received shall be bundled and summarized by consecutive assessment numbers showing the names and residences of the deceased or donor. The said returns together with the corresponding copies of the assessment notices shall be forwarded within ten (10) days after the end of each month to the Data Processing Center at the National Office. 2. D uplicat e All the duplicate copies of the returns shall be classified and distributed as follows: Those falling within the region shall be referred for investigation to the proper Revenue District Office having jurisdiction over the return. acd If at any stage of the investigation a return is found to have a gross estate of over P1,000,000.00 or properties located in two or more regions, the Letter of Authority must be cancelled and the records of the case must be forwarded to the Sector Operations Office within five (5) days from discovery thereof. Returns with gross estate exceeding P1,000,000.00 and those where the real properties are located in two or more revenue regions irrespective of the amount of the gross estate, shall be forwarded within ten (10) days from receipt thereof to the Sector Operations Office of the National Office. D. National Office . All estate and donor's tax return original and duplicate filed with the National Office shall be forwarded to the Sector Audit Review Division for assessment, numbering and processing in accordance with Paragraph II hereof and shall be distributed as follows: 1. Original To be forwarded to the Data Processing Center. All the original copies of the returns received shall be bundled and summarized by consecutive assessment numbers showing the names and residences of the deceased or donor. The said returns together with the corresponding copies of the assessment notices shall be forwarded within ten (10) days after the end of each month to the Data Processing Center at the National Office. 2. Duplicate All the duplicate copies of the returns shall be classified and distributed as follows: (a) Those falling within the jurisdiction of the Regional Offices shall be forwarded within ten (10) days from receipt thereof to the proper regional office. casia Returns with gross estate exceeding P1,000,000.00 and those where the real properties are located in two or more revenue regions, shall be forwarded within five (5) days to the Financing and Real Estate Transfer Tax Division for field investigation. In all cases, the estate or donor's tax paid shall be indicated on all copies of the return showing the Revenue Official Receipt Number or tax confirmation receipt, if paid through a bank, date of payment and the total amount paid. II. Numbering and Processing of Return : A. All estate and donor's gift tax returns received shall be numbered consecutively in the Office of the Regional Director or Sector Audit Review Division, as the case may be. The number assigned to each return shall be preceded by the Revenue District Code corresponding to the residence of the deceased or donor, classification Code, Regional Code, and followed by the last two digits of the year the deceased died and the year the return was filed. Thus, a return covering the estate of the deceased who died in 1980 or donation made by a donor in 1980 both residents of Quezon City and filed in 1980 shall have the following assessment number: 30 EA-4-B-00001-80/81 - For estate tax return 30 GA-4-B-00001-80/81 - For donor's gift tax return The present numbering of estate or donor's tax returns used in the Regional Office or Sector Audit Review Division shall be continued with the inclusion of the above codes. B. The Data Processing Center shall prepare listings for estate tax and donor's gift tax returns by National Office, Revenue Region, and Revenue District, which shall indicate the following information shown in the tax return, viz.; 1. Assessment Number 2. Name and address of the deceased or donor 3. Gross estate or gifts 4. Total deductions, including share of surviving spouse in case of estate tax 5. Net taxable estate or net taxable gifts 6. Amount of estate or donor's tax assessed or paid. Copies of the listings shall be furnished the Sector Operations Office, Revenue Regional Office and Revenue District Office concerned. After processing by the Data Processing Center, the original of the estate or donor's tax returns shall be returned to the Revenue Regional Office or Sector Audit Review Division as the case may be, for file. C. Use of the listings by the Data Processing Center . The master lists prepared by the Data Processing Center shall form part of the data bank of the Bureau of Internal Revenue and shall be the basis of statistical information on estate and donor's tax cases. cd III. Effectivity This Revenue Memorandum Order takes effect immediately. RUBEN B. ANCHETA Acting Commissioner