Policy on Non-filing of Information Returns (BIR Form 17.01-B) and Alphabetical Lists (BIR Form 17.01-B-1) of Annual Payments of P1,800.00 or More

July 5, 1977 REVENUE MEMORANDUM ORDER NO. 28-77 SUBJECT : Policy on Non-filing of Information Returns (BIR Form 17.01-B) and Alphabetical Lists (BIR Form 17.01-B-1) of Annual Payments of P1,800.00 or More TO : The Revenue Service Chief (Assessment), the Chief , Direct Taxes Division, All Chiefs, Investigating Divisions (Central Office), All Regional Directors, All Chiefs of Assessment Branches, All RDOs and Collection Agents, and All Examiners and Others Concerned As a matter of policy, let us not compromise the failure of any taxpayer to comply with the requirement of filing 17.01-B reports pursuant to Section 77 of the Tax Code; otherwise, rather than go through the trouble of submitting to us information on payments of P1,800 or above, the taxpayer will just pay the compromise penalty which is generally only a nominal amount. aisa dc Instead, if in the course of the investigation, it is found by the examiners that the taxpayer has failed to comply with the requirement of Section 77 of the Tax Code as implemented by Revenue Regulations No. 8-76, as amended, let us give the taxpayer from 15 to 30 days within which to comply with the requirement, coupled with the warning that unless he complies within the prescribed period, we are going to initiate civil and criminal proceedings pursuant to law. We should make it clear to the taxpayer that we are giving him this extension now because it was only this year that the BIR has commenced to enforce the provisions of Section 77 of the Tax Code, although mere failure to comply therewith by not filing the required 17 . 01-Bs and accompanying list within the period prescribed in Revenue Regulations No . 8-76 , as amended , already constitutes a criminal offense . Beginning next year, no extension will be granted anymore because we will assume by then that the taxpayers are already well aware of their obligations and, therefore, in case of non-compliance , we will take civil and criminal actions against the recalcitrant taxpayers right away . cd EFREN I. PLANA Acting Commissioner TAN-P4519-F2828-A-8