Campaign On Outstanding Accounts-Over P20,000 — by the National Office

May 7, 1970 REVENUE MEMORANDUM ORDER NO. 29-70 SUBJECT : Campaign On Outstanding Accounts-Over P20,000 by the National Office Pursuant to instructions from the Secretary of Finance and in order to reduce to a minimum the inventory of outstanding collectible accounts of the Bureau of Internal Revenue, there are hereby established responsibilities and procedures for the purpose. Inasmuch as the investigation of 1969 tax returns is suspended, the fieldmen in the National Office shall be responsible for looking into the status of all over P20,000 collectible accounts (outstanding accounts which are listed as clean collectibles, not deferred nor covered by warrant of distraint and levy) and effect the collection thereof. For this purpose the Revenue Operations Head (Special Operations) shall mobilize all fieldmen within his divisions except those with the Fraud Investigation Division to devote full time on this project. The Office of the Commissioner shall transmit to the Revenue Operations Head (Special Operations) Statements of Accounts in batches. The transmittal letter (Annex A) shall contain the deadline when the Statements of Accounts with all the necessary notations as indicated below shall be returned to the Office of the Commissioner (ATTN.: Assistant to the Commissioner). Two days after the deadline shall have elapsed, a memorandum call-up (Annex C) to the Revenue Operations Head (Special Operations) of those accounts which have not been reported shall be prepared and transmitted requesting submission of the unreturned Statements of Accounts and/or an explanation why they were not returned on time. The Revenue Operations Head (Special Operations) shall assign to examiners thru his division chiefs, the Statements of Accounts for proper action. Not more than five (5) Statements of Accounts shall be issued at a time to any given examiner. A Collection Assignment Order form is herewith attached (Annex B) to be used for this purpose. The assignment order shall contain some particulars on the Statements of Accounts as well as the deadline within which said statements with proper notations of the actions taken thereon are expected to be returned to the Revenue Operations Head (Special Operations). A copy of the Collection Assignment Order with the signature of the examiner acknowledging receipt of the Statements of Accounts shall be sent to the Commissioner of Internal Revenue (ATTN.: Assistant to the Commissioner) immediately upon receipt thereof by the Revenue Operations Head (Special Operations). All cases wherein there is a report of payment, either earlier made or upon representation by the examiner concerned shall be temporarily accepted as being closed subject, however, to checking with the Accounting Division or Data Processing Center records, as the case may be, to be done by a special group of employees assigned by the Commissioner under the Office of the Assistant to the Commissioner. The Assistant to the Commissioner shall give the Revenue Operations Head (Special Operations) seven (7) working days within which to complete action on any batch of statement of accounts transmitted to the latter; one day after such deadline the call-up shall be made. In order to effect this, the Assistant to the Commissioner shall maintain a file by date report is due of the copies of the collection assignment orders which shall be his basis of the call-up. To guide the fieldmen and their supervisors on what action shall be taken on collectible accounts, the following guideline is issued for reference. 1. The fieldmen shall not contact the taxpayer before he has ascertained the availability of the docket and the status of such case, based on available records. The docket of the case may show the actual status which may not necessitate contact with the taxpayer. cdt 2. If it is necessary to contact the taxpayer, care and tact should be taken so as not to antagonize the latter but rather his full cooperation should be the view point in the contact. 3. If the account is paid a) Look at the Official Receipt evidencing payment and identify whether the receipt is for the same account. b) If the same, indicate on the Statement of Account: 1. Amount paid 2. Official Receipt Number 3. Date paid 4. Place of payment 4. If case has been protested a) Secure a copy of the letter of protest and evaluate whether it is valid. The protest letter indicates the bill of particulars. Indicate so on the Statement of Account, including where filed and date filed. b) Follow-up what happened to the protest. c) No commitments should be made to taxpayer. 5. If transfer-out (Taxpayer transferred residence to a place outside the jurisdiction of the region) a) If taxpayer transferred residence outside Region 6, 7 and 8, secure the following information and indicate at the back of the statement of account: 1. The exact forwarding address of the taxpayer. 2) Name and address of the present employer of the taxpayer, if there is any. 3) Occupation of the taxpayer. 4) Name of the person who gave the information about the change of address of the taxpayer, and also the relation, if any with taxpayer. b) If the taxpayer transferred within Region 6, 7 and 8, contact the taxpayer in his new address. 6. If taxpayer's whereabouts is unknown. a) Locate assets of the taxpayer at the Register of Deeds; City, Municipal or Provincial Treasurer; and other places, and submit information together with the report. b) Execute Affidavit under Office Circular No. V-71 if taxpayer left no assets. 7. If taxpayer refuse to pay. a) Gather data or information on properties that can be distrained or levied. b) Recommend action for summary remedies. 8. If the case is in Court. a) Indicate at back of statement of account the court case number, name of the court, and address of the court. Statement of Accounts are in duplicates. Only the original with proper notations shall be returned to the Office of the Commissioner; the department head shall file the duplicates for future reference and/or action. This Order takes effect immediately. MISAEL P. VERA Commissioner of Internal Revenue