Monitoring Payments, By Individuals, of the Second Installment of Their Annual Income Taxes

March 8, 1993 REVENUE MEMORANDUM ORDER NO. 26-93 SUBJECT : Monitoring Payments, By Individuals, of the Second Installment of Their Annual Income Taxes TO : The Assistant Commissioner (Collection), all Revenue Regional Directors, Chief of Collection Branches, and Revenue District Officers It has been observed that all individuals who pay their annual income taxes in two equal installments are regularly and indiscriminately issued a notice/inquiry on whether or not they have already paid their second installments; to submit proof about such payment; and that, if no such proof is submitted or if no response is made to the said notice/inquiry, the subject individual will be issued with a tax assessments calling for payment of the purportedly unpaid second installment; inclusive of penalties. In this process, many tax assessments have been issued which, however, upon protest from the concerned taxpayers, turned out to have been duly paid. This process not only clogs the BIR's alleged collectible accounts and waste precious man hours - it also raises strong complaints and antagonism from the taxpaying public, including petitions from the latter for the administrative sanction against BIR personnel who caused the issuance of the said unwarranted tax assessments. In view of the foregoing, it is hereby ordered that the aforesaid practice be discontinued immediately. In lieu thereof, the following procedures should be instituted: 1. All Revenue District Offices shall keep a record of all individuals who paid their annual income taxes in two equal taxes in two equal installments. Each RDO shall keep an index card for each individual who availed of the said installment payment and shall record thereunder payment of the second installment made by said individual. 2. Any BIR Office which receives record of payment of the said second installment pertaining to an individual shall refer the said record to the concerned RDO. Since individuals may pay their income taxes either in the RDO having jurisdiction over the individual's place of residence or in the RDO having jurisdiction over his place of employment or place of trade or business, the said record shall be referred to the RDO where the said individual's corresponding income tax return had been filed. 3. After the deadline for payment of the corresponding second installment of the income tax due, each RDO shall review their respective records concerning payments of the said second installments. Only individuals without any record of the payment of their respective second installments of the income taxes due shall be sent a notice of inquiry/reminder whether or not payment had already been made. Strict compliance herewith is enjoined. (Sgd.) VICTOR A. DEOFERIO, JR. Deputy Commissioner (Officer-in-Charge)