"Operations Collections" for the Period from July 1, 1962 to August 31, 1962

June 6, 1962 REVENUE MEMORANDUM ORDER NO. 30-62 SUBJECT : Operations Collections for the Period from July 1, 1962 to August 31, 1962 TO : All Bureau of Internal Revenue Officials and Employees and Others Concerned 1. There is hereby ordered "Operations Collections" in order to settle all the IBM listed delinquent accounts as of July 1, 1961 and to prevent the accumulation of new delinquencies out of the unlisted tax deficiencies due from various taxpayers. 2. For the purpose of this "Operations Collections" any tax which remains unpaid after the period fixed in the assessment notice or letter of demand for the payment thereof shall be considered delinquent and included in this "Operations Collections". 3. The Program for this "Operations Collections" is as follows: PROGRAM FOR "OPERATIONS COLLECTIONS" PRE-OPERATION COLLECTION June 5 to 30, 1962 OPERATION COLLECTION July 1 to August 31, 1962 POST-OPERATIONS COLLECTION September 1 to 30, 1962 I. PRE-OPERATION BRIEFING OF PERSONNEL BY WHOM Conference of Regional Directors Commissioner of Internal in Manila Revenue Delinquent Accounts Division National Supervisor Division Seminar on collection and reporting Regional Directors, Chiefs of procedures Branches & Provincial Revenue Officers, Revenue Collection Supervisors Instructions to fieldmen and other employees to be Provincial Revenue Officers, utilized in "Operations Chiefs of Branches and Collections" Revenue Collection Supervisors (Subject: Planning, Procedures and Reporting Collection Slips ) PUBLIC INFORMATION Press released Commissioner of Internal Revenue Deputy Commissioner of Internal Revenue and Regional Directors TV, Radio & Cine Slides Tax Information Division Regional Directors & Provincial Revenue Officers Posters & Brochures Tax Information Division (Subject: Explanation to tax-paying public why there are delinquent accounts with emphasis on why some accounts are still in the Delinquency list although payments or other means has been made to close them) UP-DATING OF RECORDS: National Office Administrative Division IBM, Statistical Division, Delinquent Accounts Division Litigation & Appellate Division Regional Offices Administrative & Collection Branches, Income & Business Tax Branch, Legal & Litigation Branch Provincial Revenue Offices IBM lists in the hands of PRO and Fieldmen (Subject: Up-dating of records dockets & IBM list for ready reference. Requisition & Distribution of dockets where they are needed) PREPARATION OF GOALS WITH TARGET DATES National Office Delinquent Accounts Division Regional Director Regional Director & Collection Branch Provincial Revenue Officer Regional Director Field personnel utilized for collection Branch Chiefs & Provincial Revenue Officers Collection Goals (Subject : Closing of a minimum of 1/8 of Listed & Unlisted Delinquent and Current Accounts cases every week) II. OPERATION COLLECTION WHO ARE TO DO THE WORK Collectible Fieldmen of the Collection Branch and Provincial Revenue Offices Transfers pending confirmation Provincial Revenue Officer and Regional Director Protested Cases Legal Branch, Income & Business Tax Branch, Investigation Branch and Fieldmen of Provincial Revenue Officer Cases Pending in Court and The Appellate Division Legal Branch & Appellate Div. Cases where warrant of Distraint and Levy were issued Issuance P10,000 or above Delinquent Accounts Division Less than P10,000 Regional Director and Delinquent Accounts Division Execution Investigation Branch Follow-up National Level Collection Department Regional Level Delinquent Accounts Division National Supervisors Division Provincial Revenue Officer Regional Directors and Chiefs of Collection Branches Fieldmen Provincial Revenue Officer WHAT SHOULD ACTUALLY BE DONE (1) Regarding Collectible Accounts (a) Warrants of distraint and levy should be issued and executed whenever it is necessary to enforce the collection of accounts especially in those cases which are about to prescribe; (b) For accounts covered by surety bonds where the taxpayers failed to pay any of the installments stipulated therein, the unpaid balance shall at once become due and demandable in accordance with the terms of the surety bond and the taxpayer and the surety shall be informed in writing and demand made for the payment thereof within five (5) days. If such balance is not paid within the period so stated, (a warrant of distraint and levy should be issued immediately to enforce its collection) or action for the forfeiture of the bond should be taken by that Office. (c) Taxpayers who would offer to pay their accounts by monthly installments if the amount does not exceed P6,000.00, a period of not more than six (6) months or in, six (6) equal monthly installments may be allowed. If the amount exceeds P6,000.00 the taxpayers may be allowed a period of not more than one (1) year or in twelve (12) equal monthly installments. In both cases, the bond to be required should be a surety bond prepared in accordance with the requirements of General Circular No. V-269 dated January 23, 1958. As emergency measure, all surety bonds to guarantee the payment of accounts in amounts not exceeding P10,000.00 may be approved by Regional Directors notwithstanding the requirements of Memorandum Order No. V-119 dated January 28, 1958. (d) Civil or criminal action in court for the collection of delinquent taxes should be taken in appropriate cases. (e) When the delinquent taxpayers' whereabouts are unknown and he has no property, or such taxpayer is deceased and has no property, personal or real, which may distrained or levied upon to satisfy his tax liability, action should be taken promptly in accordance with Office Circular No. V-71 dated June 18, 1952 so that the case may be closed. (2) Transfer Pending Confirmation (a) Delinquent accounts of taxpayers who are reported to have transferred their residence from one province to another within the same regional district (without the participation of the National Office). Only when the transfer is confirmed and/or the accounts are paid should the matter be reported to the National Office, attention : Chief, Delinquent Accounts Division. (b) Taxpayers who are reported to have transferred their residences from one Region to another should be taken up directly by and between the two regional offices concerned without the participation of the National Office. (3) Protested Cases The Collection Branch should call or follow-up these cases in the Income and Business Tax Branch, Investigation Branch, or Legal Branch, as the case may be, to assure that action thereon is being taken and terminated within the duration of this campaign. (4) Cases Pending in Courts and in the Appellate Division. The Collection Branch will call or make a follow-up of these cases in the Legal Branch to assure that appropriate action is taken or reference is made to the Collection by the Legal Branch in case there has been a decision and the decision has become final. The IBM list for the Provincial Revenue Offices should be used by them in ascertaining from the taxpayers concerned the present status of these court and appellate cases and in collecting the amounts that may be found to be properly due if the cases have already been decided. (5) Cases where Warrant of Distraint and Levy have been issued. The fieldmen of the Investigation Division, Investigation Branch, and collection agents when available should take care of the service and execution of warrants of distraint and levy. Pointers regarding this matter shall be prepared by the National Office and sent to the Regional Director for their guidance and distribution to those concerned. FOLLOW-UP The National Supervisor Division and the Delinquent Accounts Division in consultation with one another should prepare a system of check of the progress in the different regions and provincial revenue offices. For this purpose, they should prepare a sort of an audit program to be followed by supervisors and officials sent out to the field to see to it that work assigned are being accomplished and that standing instructions are observed especially in matter of report making. Pointers on report making shall be prepared by the Delinquent Accounts Division to insure uniformity and accuracy of report. The Regional Director and the Provincial Revenue Officers should devise their own system of checking the actual accomplishment of the personnel under their supervision. III . POST-OPERATION REPORTS Provincial Revenue Officer: 1. Submission of reports required of him to his Regional Director on or before September 5, 1962. 2. Preparation and submission of a Statement of Goal and Actual accomplishment of the fieldmen and his office to his Regional Director. 3. Up-dating of postings to the IBM list in his office. 4. Systematic filing of copies of B.I.R. Form No. 40.06 (Daily Report of Activities of Fieldmen) and B.I.R. Form No. 40.07 (Summary of Activities). 5. Systematic filing of file copies of cases and dockets that he has acted upon. 6. Compilation of instructions issued by him on collection matters for ready reference. 7. Keeping a folder of all bulletin, memoranda, circulars and instructions on collection matters for reference. Regional Director : 1. Submission of monthly reports by the Chief, Collection Branch on BIR Forms Nos. 40.08, 40.09, 40.10, 40.10-A, 101-A-L-a and 101-A-L-b within the first 10th days of September, 1962. The names of the fieldmen assigned in this campaign should be listed in alphabetical order. For control purposes and in order to keep this Office informed of the accomplishment of such fieldmen concerned including those who have not closed any case, should be made to appear in your report or B.I.R. Form No. 40.08. 2. Collection Slips should not be sent to the Delinquent Accounts Division unless they have been thoroughly screened by the Chief, Collection Branch in accordance with the provisions of the Internal Revenue Manual or Collection Procedures as amended up to December 2, 1957. 3. The Administrative Branch should make a systematic filing of all the records and dockets of cases including those which have not been acted upon in the campaign. 4. All communications, memorandum, circulars, regulations, etc., regarding Operations Collections should be filed systematically by the Collection Branch and Administrative Branch for future reference. National Office: Tabulation of all the reports of the different regional offices. OBSERVATION AND IMPRESSIONS : The National Supervisors, Regional Directors and Provincial Revenue Officers should prepare in a report form their observations, impressions and suggestions on the actual Operations Collections recently concluded. RECOMMENDATIONS : From the provincial revenue officer level to the Division Chief Level, it is expected that appropriate recommendations based on observations and impressions referred to above be made to 1) improve the service, 2) gain the confidence of the tax-paying public, and 3) to preclude the frequent recurrence of "Operations Collections". LLjur All concerned are enjoined to comply with this order. (SGD.) JOSE B. LINGAD Acting Commissioner of Internal Revenue