Revised Procedures in the Receipt of Tax Returns/Documents and Issuance of Revenue Tax Receipts for Payment of Internal Revenue Taxes Through Authorized Agent BanksRevised Procedures in the Receipt of Tax Returns/Documents and Issuance of Revenue Tax Receipts for Payment of Internal Revenue Taxes Through Authorized Agent Banks

October 25, 1978 REVENUE MEMORANDUM ORDER NO. 30-78 SUBJECT : Revised Procedures in the Receipt of Tax Returns/Documents and Issuance of Revenue Tax Receipts for Payment of Internal Revenue Taxes Through Authorized Agent Banks TO : All Internal Revenue Officers and All Others Concerned In order to achieve proper, coordinated, and effective implementation of Executive Order No. 206, dated January 9, 1970 as amended by Letter of Instruction No. 497 dated January 21, 1977, authorizing the Central Bank, the Ministry of Finance, and the Bureau of Internal Revenue to make the necessary changes in the receipt of payments of internal revenue taxes through the banking system, there are herewith prescribed the revised procedures to be followed: I. General Procedures cdt A. The principal change in the procedure of payment of national internal revenue taxes through the banking system is the issuance of confirmation receipts for tax payments received by authorized agent banks upon the presentation of the Revenue Tax Receipt and payment of the tax indicated therein. Prior to this innovation, the Bureau of Internal Revenue prepared the Revenue Tax Receipt (RTR) which would be presented by the taxpayer to the authorized agent bank indicated therein. Upon receipt of payment, the bank would validate the RTR by using a validating machine, or a check writer, or a rubber stamp, after which an authorized bank official shall affix his signature. This validation of the RTR would convert the document into a valid receipt for tax payments. Under this new procedure, the RTR would not be a valid receipt unless accompanied by the corresponding confirmation receipt issued by an authorized agent bank. B. The Revenue Tax Receipt (RTR) is issued by the Bureau of Internal Revenue in sets of five (5) copies denominated as follows: Original Central Bank's copy Duplicate BIR-DPC copy Triplicate Agent Bank's copy Quadruplicate Taxpayer's copy Quintuplicate (Card texture) BIR file copy C. The Confirmation Receipt is issued by authorized agent banks in sets of four (4) copies which shall be attached to the RTR as follows: Original (Taxpayer's copy) to be attached to the quadruplicate copy of the RTR Duplicate (Central Bank copy) to be attached to the original copy of the RTR Triplicate (BIR-DPC copy) to be attached to the duplicate copy of the RTR Quadruplicate (Agent Bank's copy) to be attached to the triplicate copy of the RTR D. The Central Bank of the Philippines is responsible for the printing and control of all Revenue Tax Receipts (RTR) and all Confirmation Receipts. E. The Bureau of Internal Revenue is the sole agency that shall issue Revenue Tax Receipts (RTR) while the Confirmation Receipts shall be issued by the Central Bank through its authorized agent banks. F. The following internal revenue taxes are payable to the Central Bank through the authorized agent banks: 1. Income taxes, including Withholding taxes on wages and at source; 2. Estate and Donor's taxes; 3. Specific taxes; 4. Fixed taxes on business; 5. Percentage taxes prescribed in Title V of the National Internal Revenue Code except percentage taxes arising from imports; 6. Documentary stamp tax in amounts of P10.00 and above except those loaded in the metering machines; 7. Taxes on banks, taxes on finance companies, taxes on insurance companies, franchise taxes; 8. Tax on winnings and amusement taxes except those transferred for administration by local governments ; 9. Charges on forest products; 10. Mining taxes; 11. Firearms tax; 12. Tobacco Inspection fees; and 13. Sugar adjustment taxes 14. Overseas Communication Tax G. All cities and municipalities where there are commercial, savings and mortgage banks, stock savings and loan associations, development banks, the Development Bank of the Philippines and the Land Bank of the Philippines and any of their branches are covered by this procedure. H. The Accountable Forms Division of the Bureau of Internal Revenue shall have custody and control of RTR booklets received from the Central Bank. I. The custodian of the RTR's shall issue the booklets of RTR's only upon presentation of a duly approved requisition. J. The Collection Agent or any designated Receipt Issuing Officer shall issue RTR's to taxpayers upon presentation of a tax return, an assessment notice or a demand letter or an Authority to Issue RTR, a Dummy Sheet, or any communication issued by the Bureau of Internal Revenue for the collection/payment of taxes. K. The Commissioner of Internal Revenue in the Central Office and the Regional Director in the revenue regions may authorize internal revenue officers other than the Collection Agent to issue Revenue Tax Receipts. L. The Central Office shall provide the revenue regions with the list of banks designated by the Central Bank to receive tax payments in each city or municipality. M. All RTR's in one booklet are to be issued for presentation to only one authorized agent bank or any one of its branches. II. Procedure in the procurement and issuance of Revenue Tax Receipts A. The offices involved in the procurement and issuance of RTR's under the new system of payment of internal revenue taxes to the Central Bank through authorized agent banks, with their functions and responsibilities indicated, are enumerated hereunder: 1. The Accountable Forms Division shall: a. requisition the Revenue Tax Receipts (RTR's) from the Central Bank and shall act as custodian thereof; b. issue booklets of RTR's to authorized Bureau of Internal Revenue Offices or Officials only upon presentation of a requisition duly approved by the Regional Director for those to be issued in Revenue Regional Offices, or by the Assistant Commissioner designated by the Commissioner for those issued by offices in the Central Office. c. furnish simultaneously the Data Processing Center, the Inspection Service (Fiscal Control Division), and the Regional Director concerned with a listing of the RTR booklets issued to authorized offices indicating therein the inclusive serial numbers and the dates of issue, whenever booklets of RTR's are distributed; d. prepare and submit to the Central Bank a monthly report on the RTR's issued to all Bureau of Internal Revenue offices showing the inclusive serial numbers and dates of issue, on the prescribed form, BIR Form No. 806 (Annex "A"). e. render a monthly report to Central Bank on cancelled RTR's. 2. The Administrative Branch shall: a. requisition the RTR booklets from the Accountable Forms Division and shall act as custodian of the same in the Regional Offices; b. issue booklets of RTR's to the Revenue District Collection Supervisors in the Revenue Regional Offices authorized to issue the same upon presentation of a requisition duly approved by the Regional Director. However, in Revenue Region No. 4-A, where there is only one (1) Collection Unit for Revenue District Offices Nos. 22 up to 25, issue RTR booklets to the Chief, Assessment Branch and the Chief, Collection Branch upon presentation of a requisition duly approved by the Regional Director; c. take responsibility for the availability of sufficient booklets of RTR's at all times in the Revenue Regional Offices; d. render a monthly report on the distribution of RTR booklets to the Chief, Accountable Forms Division on the prescribed form, BIR Form No. 806 and furnish the Chief, Fiscal Control Division and the Chief, Assessment Branch of its Revenue Regional Office with copies of this report; e. file all copies of cancelled RTR's received from the Assessment Branch; the same shall be disposed of in the prescribed procedure for accountable forms; f. render a monthly report to the Accountable Forms Division on cancelled RTR's received during the month stating therein their serial numbers. 3. Collection Unit/Other offices authorized to Issue RTR's The head of the Collection Unit or of other offices authorized to issue RTR's shall be responsible for the efficient implementation of the procedures on the custody, issuance and control of RTR's as well as for the accurate preparation and prompt submission of required reports by the personnel under his supervision involved in the issuance of RTR's. Conversely, all designated RTR Issuing Officers shall be responsible to their respective heads of units for all RTR's issued to them, and for adherence to the procedures prescribed in this Revenue Memorandum Order on the issuance of RTR's and the preparation and submission of reports. The Collection Agent or any designated Receipt Issuing Officer under his supervision and control shall: a. brief the taxpayer on the following points before preparing an RTR: (1) the RTR can only be presented for payment to the bank indicated therein; (2) the Confirmation Receipt shall be issued by the bank upon payment of the amount of the tax indicated in the RTR as an acknowledgment of the receipt of the tax payment; (3) one check for the payment of the tax liabilities of more than one taxpayer will not be accepted; (4) the full payment for one RTR should be either in cash or in check; payment partly in cash and partly in check for one RTR are not accepted by the agent banks; (5) payment of documentary stamps in amounts of more than P10.00 and of cigarette strip stamps, in any amount, if by check shall be in Certified or Manager's checks; b. prepare a set of RTR addressed to the authorized agent bank assigned to him, only upon presentation of a tax return, a demand letter, an assessment notice, or any other basic document for the payment of an internal revenue tax; c. not issue an RTR if a Tax Credit Memo is used for payment except when the amount indicated on the Tax Credit Memo is less than the tax liability; in such a case, the RTR shall be prepared only for the balance of the tax due after deducting the tax credit; if the amount indicated on the Tax Credit Memo is equal to or greater than the tax liability, refer the Tax Credit Memo with the basic document to the Collection Service in the Central Office for processing; d. always use a typewriter in the preparation of RTR's in order to insure legibility of all copies; e. fill in items 1 up to 19 only, as item 20 shall be filled in by the bank; f. observe strictly the guidelines set forth in paragraph II-B of this Memorandum Order for filling in the boxes and/or spaces in the RTR; g. indicate in item 19 of all RTR's issued after the close of banking hours, but not later than the due date for the payment of the tax liability, the phrase "Issued after 4:00 o'clock P.M." to enable the taxpayer to pay his tax liability up to twelve o'clock noon of the following business day without penalties; h. imprint the stamp of the office on the face of the basic documents and their attachments and annotate on the spaces provided thereon the RTR number, date of issue, and amount to be paid; i. give the taxpayer his file copy of the tax return or document and the four copies of the RTR; j. retain the Card copy (quintuplicate) of the RTR for transmittal direct to the Reconciliation Officer; k. bundle the documents, arranged in the numerical sequence of RTRs issued during the day and regardless of whether or not all the RTRs in the booklet were issued, prepare the Daily List of RTRs Issued on BIR Form No. 809 (attached as Annex "C"); l. accomplish the Daily List of RTRs Issued in quintuplicate, filling up all the columns, except the column for the Confirmation Receipt Number, by using the BIR Card copy of the RTR as basis for its preparation; properly fill in the information called for in the summary at the upper left hand side of the form, and accomplish the recapitulation accurately. If any RTR was cancelled, indicate the word "CANCELLED" opposite the number of the RTR being cancelled under the column "Name of Taxpayer"; m. transmit the card (quintuplicate) copies of the RTRs issued during the day, using the original of the Daily List of RTRs Issued (BIR Form 809) as the transmittal list, to the Reconciliation Officer the following day; n. transmit the basic documents received including the complete sets of all cancelled RTRs to the Assessment Branch with the duplicate and triplicate copies of the Daily List of RTRs Issued (BIR Form 809) simultaneously with the transmittal of the card copies to the Reconciliation Officer. For RTR Issuing Officers in the Receivable Accounts Division, transmit the bundle of documents with the duplicate and triplicate copies of the Daily List of RTRs Issued (BIR Form No. 809) to the Assessment Service. o. Forward the quadruplicate copy to the Regional Director in Revenue Regions 4-A and 4-B and to the respective Revenue District Officers in all other regions. During the periods when Revenue Examiners are designated as RTR Issuing Officers, their quadruplicate copy shall be submitted to the Revenue District Officer; For Receipt Issuing Officers in the Central Office, forward the quadruplicate copy to the Revenue Service Chief (Collection); p. The Collection Agent or the Revenue District Officer, or the head of office authorized to issue RTRs, as the case may be, shall scrutinize the Daily List of RTRs Issued prepared by the Issuing Officers under his supervision for the purpose of accounting for all RTRs in a booklet and all booklets issued to his office; q. retain the quintuplicate as his file copy; r. render a monthly report to the Regional Director (Attn.: Chief, Administrative Branch) on the RTR booklets with the corresponding serial numbers received, issued, and still unissued, on the prescribed form, BIR Form No. 806 by summarizing the individual reports rendered by all RTR Issuing Officers under him; furnish the Fiscal Control Division with a copy of this report. Guidelines for Filling in the Boxes/Spaces of the RTR : 1. Issue one RTR for each kind of tax for one year or period, or for every assessment notice or demand letter; 2. Enter any date in the RTR by indicating first the day of the month in figures followed by the first three letters of the month in words and the last two digits of the year. Example: "15 Nov 78" or "31 Jan 79"; 3. Items 1, 2, & 3 identify the taxpayers, all these data are obtainable from the basic document presented by the taxpayer; See to it that the complete address of the taxpayer is indicated in the RTR; do not accept a P.O. Box Number as a taxpayer's address; 4. Item 4 indicates the total amount of tax due from the taxpayer, which includes the basic tax, surcharge, interest, and compromise penalty, if any. This amount may be bigger than the amount indicated in item 9; 5. Items 5, 6, 7, and 8 shall be filled up with the figures shown in the basic documents presented. IMPORTANT : If payment is made after the due date indicated on a notice of assessment or letter of demand or after the last day for the payment of "self-assessed" taxes, the increments (surcharge, and/or interest, and compromise penalty) must be computed and added to the amounts indicated on the basic documents. If the notice of assessment or demand letter indicates payment of basic tax, surcharge, interest, compromise penalty, itemize all these in the spaces provided therefor and under each of these figures in the same space, indicate the additional surcharge, interest, and compromise penalty computed due to late payment. 6. Item 9 Pay This Total This figure is arrived at by adding the amounts entered in items 5, 6, 7, and 8. Immediately after the total amount in figures, indicate in the space provided the same amount in words; 7. If the quarterly withholding tax returns (BIR Form W-1) presented covers a bigger amount than the tender of payment, request for the RTRs of previous monthly payments made of withholding tax on wages; annotate the pertinent data (RTR No. and the corresponding Confirmation Receipt No.) at the reverse side of Form W-1, sign it, and return the RTR with the corresponding Confirmation Receipt to the taxpayer; do not accept incomplete W-1s. Accept payments, regardless of whether or not the W-1 was properly accomplished. Use the Dummy Sheet as a source document. 8. Item 10 Due Date of Tax This item pertains to the due date indicated on the assessment notice or letter of demand or the last day for the payment of self-assessed taxes. Example: The income tax due from a salaried individual for the year 1977 is P200.00 only and the last date for his payment is March 15, 1978. Enter "15 Mar 78" in this space. 9. Item 11 Period Covered This refers to the period for which the tax is paid. If the tax is payable monthly, indicate the first three letters of the month and the last two digits of the year, in the space after "MONTH" or if quarterly, the number of quarters 1st, 2nd, 3rd, 4th as well as the last two digits of the year. Examples: a) Withholding tax on wages for the month of March, 1978 typewrite "Mar" opposite the word Month and "78" opposite the word Year . b) Percentage tax for the third quarter of 1978 typewrite "3rd" opposite the word Quarter and "78" opposite the word Year . 10. Item 12 Mode of Payment a) Indicate in this space "1st" or "2nd" installment, etc. as the case may be, if payment corresponds to an installment of a tax due. Any payment is considered on installment if: (1) Authorized by the provisions of the National Internal Revenue Code as in the case of income tax, if the tax due from an individual is in excess of P1,000.00, the same may be paid in two equal installments; or (2) When the Commissioner of Internal Revenue has approved the request of the taxpayer that his tax liability be paid in installments. b) Indicate "part payment" if the amount being accepted is less than the tax or installment due or that shown or indicated in the basic document, or when the tax has become delinquent and the taxpayer has not provided for penalties and other increments; c) Indicate "Full Payment" if the amount being paid is equal to the tax due per the basic document presented and payment is made on time, or if delinquent, that which includes all increments; d) Indicate "Self-assessed" if the amount being paid is equal to the tax due per return as computed by the taxpayer. Examples of these are the quarterly percentage, Corporate quarterly income, all other income taxes computed by the taxpayer in his return, etc. 11. Item 13 Basic Document a) Indicate herein the document presented by the taxpayer. If a return is presented, indicate the form number as shown in the return itself, such as 1701 or 1701A for an individual income tax return, 1702Q for a Quarterly Corporate Income Tax Return, 2529 for Business Percentage Tax Return, etc. b) If an assessment notice or a demand letter is presented, indicate "Assessment Notice" or "Demand Letter" as the case may be, the date, and the assessment or demand number in the spaces provided. c) If the basic document presented is a Dummy Sheet (D.S.) or an Authority to Issue RTR (ATIRTR), the abbreviation of the name of the document, D.S. or ATIRTR, shall be indicated in the space provided for that item. 12. Item 14 Kind of Tax Indicate herein the specific tax being paid, as Income Tax, Withholding Tax on Wages, Withholding Tax at Source, Contractor's Tax, Manufacturer's Tax, Mining Tax, Privilege Tax, Specific Tax on Cigarettes, etc. 13. Item 15 Tax Numeric Code Indicate herein the BIR as well as the BIR (Bureau of Treasury)/GFS (Government Financing Statistics) codes. To prevent any error, refer to the Tax Numeric Code of Revenue Sources covered by RMO No. 5-78 dated January 20, 1978. 14. Item 16 BIR Issuing Officer Typewrite your name, designation, and code number, and affix your signature. Specify your place of assignment as Receipt Issuing Officer by indicating the Region, District, and Municipality codes opposite the corresponding items. Refer to your copy of the listing of the municipalities and cities and their corresponding code numbers. 15. Item 17 Name and Address of Authorized Agent Bank a) Indicate herein the name, code number, and address of the agent bank assigned to you. Example: Philippine Commercial and Industrial Bank 020-034 Quezon Boulevard Extension Quezon City b) Be sure to indicate the proper address of the bank and its code number as there may be several branches of the same bank located in different areas of the City or Municipality. Refer to the Listing of Banks with their corresponding code numbers to avoid errors. c) Advise taxpayer to present the RTR only to the bank indicated in this space to prevent the RTR of being considered as not valid; 16. Item 18 Date and Place of Issue Indicate in this space the date when and the place where the RTR is issued. The corresponding municipality code of the place of issue shall be typewritten immediately after the name of the city or municipality . 17. Item 19 Remarks Indicate herein appropriate remarks like "Issue after 4:00 O'clock P.M.", or "This cancels RTR No.________", etc. III. Processing and Control of RTRs Issued and Documents Received from the Collection Agents and Other Authorized Receipt Issuing Officers. The offices and/or units involved in the processing of RTRs issued and basic documents received by RTR issuing officers are enumerated hereunder with a definition of their respective functions and responsibilities. A. Revenue District Officer or Head of office authorized to issue RTR Where the Collection Unit is under the supervision and control of the Revenue District Officer and during periods when the volume of tax payments received is so big that revenue examiners and other qualified personnel are authorized to issue RTRs, the Revenue District Officer or any head of office authorized to issue RTRs shall: 1. Supervise the preparation of the Daily List of RTRs Issued (BIR Form 809) by the RTR Issuing Officers in his district or office; 2. Be responsible for the proper transmittal by the Issuing Officers of the fifth copy of all RTRs issued, the basic documents received, all copies of cancelled RTRs, and the corresponding copies of the Daily List of RTRs Issued (BIR Form 809) in accordance with the procedure set forth in this Revenue Memorandum Order; and 3. Account for all the booklets of RTRs issued to his office in the form prescribed for the purpose. B. The Assessment Branch/Assessment Service shall: 1. Keep and maintain a Control Register of RTRs issued to the Issuing Officers in the Region using as basis the listing furnished the Regional Director, by the Accountable Forms Division and by the Administrative Branch; Post issued numbers as reflected in the Daily List of RTRs Issued; 2. Check completeness and sequence of RTRs issued and compare the Daily List of RTRs Issued (BIR Form 809) with the accompanying documents, which may be a tax return, demand letter, or assessment notice, or dummy sheet (BIR Form No. 808); Check also correctness of annotations on basic documents; Report to the Regional Director or to the Assistant Commissioner designated any discrepancies noted in the comparison; 3. Prepare a monthly report to be submitted to the Regional Director or to the Assistant Commissioner designated by the Commissioner, as the case may be, on the RTRs issued to Issuing Offices but which still remains unissued in the Control Register thirty days after the same were received by these offices. Use BIR Form 806A attached as Annex "L". 4. Assign a block number to every "Daily List of RTRs Issued" submitted. The block number shall indicate the region, number, month, serial number, and the year. Begin with No. 001 every month. Example: The first Daily List of RTRs Issued received in March, 1978 in Revenue Region No. 4-A shall be given the following block number: 4A-3001-78 wherein 4A represents the Region 3 the month of March 001 the serial number, and 78 the year 5. Dispose the copies of the Daily List of RTRs Issued as follows: Duplicate Retain in the Assessment Branch/Assessment Service as file copy; Triplicate Transmit to the Central Bank thru the Administrative Service For the revenue regional offices outside the Metro Manila Area where there are regional offices of the Central Bank, its copy should be sent to the respective Central Bank regional offices. In Revenue Regional Offices Nos. 1, 2, 5, 8, 9, and 10-B, where there are no Central Bank regional offices, the triplicate copy of the Daily List of RTRs Issued (BIR Form No. 809) shall be transmitted to the Central Office through the BIR Pouch System. Revenue Regions No. 3-A, 3-B, 4-A, 4-B, and 4-C shall transmit daily by messenger the Central Bank copy of the Daily List of RTRs Issued to the Administrative Service in the Central Office. 6. Maintain a complete and systematic file of the duplicate copies of the Daily List of RTRs Issued arranged in numerical sequence by the block number given; 7. Sort basic documents according to kind tax return, assessment notice, demand letters, dummy sheet, Authority to Issue Revenue Tax Receipt, etc. 8. Process all tax returns in accordance with existing procedures; 9. Forward to the Collection Branch in the Regional Office or the Receivable Accounts Division in the Central Office all: a. Dummy sheets for the purpose of determining the correctness of the payment received and attaching the same to the document or docket involved. b. Assessment notices and/or demand letters for processing and attachment to the corresponding dockets. 10. Forward the Authority to Issue Revenue Tax Receipt (ATIRTR) to the office or unit which issued the same; 11. Transmit to the Administrative Branch or to the Accountable Forms Division all copies of cancelled Revenue Tax Receipts issued in the Regional Office or in the Central Office, respectively, for filing and disposition in accordance with existing procedures; 12. Report to the Regional Director or the Assistant Commissioner designated, as the case may be, any discrepancies noted in the Control Register. C. The Administrative Service shall deliver daily to the Central Bank its copy of the Daily List of RTRs Issued (BIR Form No. 809) received from the different Regional Offices through the Pouch System and those received through personal delivery. D. Regional Director/Revenue District Officer/Collection Service The Regional Director in Revenue Regions No. 4-A and 4-B or the Revenue District Officers in the Revenue District Offices except in Revenue District Offices Nos. 22 up to 25 and 28 up to 36 or the Revenue Service Chief (Collection) in the Central Office shall designate the internal revenue officer who shall gather daily the Reconciliation Officer's copies (duplicate copy) of the Summary Report of Collection of National Internal Revenue Taxes (CB-RCO Form No. 003) directly from all authorized agent banks within his jurisdiction. The Reconciliation Officer or any official or employee assigned to the reconciliation process shall not be designated for this purpose. Use the quadruplicate copies of the Daily List of RTRs Issued (BIR Form No. 809) received from the RTR Issuing Officer to check whether or not all Summary Report of Collections of Internal Revenue Taxes (CB-RCO Form No. 003) have been gathered. Ask the Reconciliation Officer to acknowledge receipt of the corresponding Summary Report of Collection of National Internal Revenue Taxes (CB-RCO Form 003) on the quadruplicate copy of the Daily List of RTRs Issued (BIR Form 809). The Central Bank has allowed authorized agent banks to submit their Summary Report of Collections of National Internal Revenue Taxes (CB-RCO Form No. 003) one week after the date of collection to coincide with the date of remittance of the amounts collected. The authorized agent banks are, however, still required to prepare the form daily. It is only the submission to Central Bank that has been extended to one week. Representatives of the Bureau gathering this report from the banks shall continue to collect these reports daily although the report would be on RTRs issued one week before. E. Collection Branch/Revenue District Offices/Collection Enforcement Division 1. The Collection Branch in Revenue Regions No. 4-A and 4-B, the Revenue District Officers, except those of Revenue District Offices Nos. 22 up to 25 and from 28 up to 36 and the Collection Enforcement Division in the Central Office shall perform the functions enumerated hereunder with respect to RTRs issued in Revenue Regions No. 4-A and 4-B, the Revenue District Offices except those under the jurisdiction of Revenue Regions Nos. 4-A and 4-B, and in the Receivable Accounts Division of the Central Office, respectively. 2. The designated Reconciliation Officers shall : a) Reconcile the Daily List of RTRs Issued against the corresponding Summary Report of Collections of National Internal Revenue Taxes (CB-RCO Form No. 003); b) Post the confirmation receipt number as shown in the Summary Report of Collections of National Internal Revenue Taxes (CB-RCO Form No. 003) opposite the appropriate RTR Number under the column provided therefor in the Daily List of RTRs Issued (BIR Form No. 809) and on item 20 of the BIR Card copy of the RTRs previously received from the Issuing Officers. c) Check the Recapitulation in the lower portion of the Daily List of RTRs Issued (BIR Form No. 809); d) Determine the RTRs listed in the Daily List of RTRs Issued which remain open., that is, no Confirmation Receipt Number has been posted in the column provided for that purpose; This is an indication that the RTR was not presented to the bank for payment; e) Verify from the agent bank if actual payment was made on any RTR, opposite which no confirmation receipt number is posted on the Daily List of RTRs Issued one week after the date of issue, except when the deadline for payment of the tax has not passed within that week. If same was not presented for payment, it becomes a delinquent account in which case steps should be instituted for its immediate collection; f) Prepare a collection letter, on the form prescribed for the purpose, BIR Form No. 1234 (Annex "J") for the signature of the Revenue District Officer or the Regional Director or the Official designated by the Commissioner in the Central Office, as the case may be, for the collection of delinquent accounts arising from non-presentation of RTRs issued to authorized agent banks for payment of the tax except those whose addresses are beyond his jurisdiction. Furnish the Assessment Branch of the Revenue Regional Office or the Assessment Service in the Central Office with copies of the letters. The accounts demanded in the collection letter which have not been previously set up in the Data Processing Service through the processing of tax returns or Form 40.00 shall be set up in another Form 40.00 by the Assessment Branch or the Assessment Service, as the case may be. g) Segregate the BIR Card copy of the RTRs issued to taxpayers whose addresses are not within the jurisdiction of the Regional Office or the Revenue District Office which issued the RTR; h) Forward the BIR Card copy of the RTRs issued to taxpayers falling under the jurisdiction of other Revenue District Offices within the same Revenue Regional Office, directly to the appropriate Revenue District Office after the reconciliation process. Transmit to the respective Revenue Regions the BIR Card copies of RTRs issued to taxpayers falling within their respective jurisdictions after the reconciliation process. i) Retain the BIR Card copy of the RTRs issued for payment involving amounts within his jurisdiction (Revenue District Office payments in the amounts of P5,000.00 and below; Collection Branch payments above P5,000.00 but not more than P20,000.00; Receivable Accounts Division payments on all assessment notices and demand letters issued in the Central Office, the aggregate amount of which involves P20,000.00 or more). Forward the Card copies of the RTRs to the proper office having jurisdiction over the amount after the reconciliation process. j) Send immediately a collection letter (BIR Form No. 1234) if there is no confirmation receipt number indicated in the space provided for the purpose in the BIR Card copy of the RTR received by the Region or the Revenue District Office from other offices as this is an indication that payment to the agent bank was not made; furnish the Assessment Branch with copies of these collection letters for processing in the manner described in paragraph 2f; k) Prepare and submit a monthly report on all RTRs issued in the Revenue District Offices not presented for payment to the authorized agent banks as of the end of the month on BIR Forms 12.35 and 12.35-A attached as Annexes G & G-1. This report shall be prepared in four (4) copies and distributed as follows: Original Central Bank Duplicate Receivable Accounts Div. Triplicate Regional Office Quadruplicate file copy The first three (3) copies shall be transmitted to the Regional Director. l) Prepare the Weekly Summary of Internal Revenue Collections, BIR Form No. 12.33 (Annex "E"). This weekly summary report shall be the basis for preparing the monthly report on BIR Form No. 12.33A, Monthly Summary of Collections. The monthly report shall be prepared in five (5) copies, to be distributed as follows: Original Collection Service Chief Duplicate Central Bank Triplicate Bureau of Treasury Quadruplicate Regional Director Quintuplicate File copy m) Arrange the BIR Card copies of the RTRs alphabetically for reference and statistical purposes. 3. The Revenue District Officer shall : a) Forward to the Collection Branch of the Revenue Regional Office the Summary Report of Collections of National Internal Revenue Taxes (CB-RCO Form No. 003) after all the numbers of Confirmation Receipts have been posted to the Daily List of RTRs Issued (BIR Form No. 809); b) Forward the Daily List of RTRs Issued to the Collection Branch, one month after the date of issue of the RTRs listed thereon, whether or not all RTRs in the list have a corresponding confirmation receipt number posted in the appropriate column opposite it; c) Continue the collection proceedings on all outstanding RTRs (those still unpaid) until the account is collected. As soon as collection is effected, inform the Collection Branch to cancel the RTR without notations of payment appearing in the Daily List of RTRs Issued and to annotate the new number if a new one was issued with the corresponding Confirmation Receipt Number; 4. Collection Enforcement Division The instructions in number 3a, b, and c above shall apply to the Collection Enforcement Division, but all reports shall be forwarded to the Collection Service instead of to the Collection Branch. 5. The Collection Branch/Collection Service shall : a) Maintain a systematic file of all Daily Lists of RTRs Issued (BIR Form No. 809) and the Summary Report of Collections of National Internal Revenue Taxes (CB-RCO Form No. 003) received in the Revenue Regional Office or the Central Office, as the case may be. b) Control and update all unpaid RTRs issued in accordance with the following procedures: (1) card all unpaid RTRs issued on BIR Form No. 10.00 (attached as Annex "F") and arrange the same alphabetically by name of the taxpayer; (2) post the Confirmation Receipt number and all other payment data on the card as soon as information of payment is received to close the taxpayer's account and pull out the card from the file of delinquent RTRs; and (3) program a systematic and consistent follow up of all delinquent accounts arising from non-payment on RTRs issued until the same are collected. c) Collate for the Regional Director all monthly reports on Unvalidated RTRs (BIR Forms Nos. 12.35 and 12.35-A) and the Monthly Summary of Collections (BIR Form No. 12-33-A) and transmit the same to the proper offices. d) Prepare a consolidated report on BIR Form No. 12.35-A on the RTRs issued in the Regional Office which were not presented to the banks for payment. This summary report shall also be prepared in four (4) copies and distributed as follows: Original Central Bank Duplicate Receivable Accounts Div., CS Triplicate Regional Office Quadruplicate File copy This summary report shall be attached to the copies of the monthly reports submitted by the Reconciliation Officers upon transmittal of the same to the proper offices. F. The Data Processing Center shall : 1. Periodically collect from Central Bank the Data Processing Service's and Accounting Division's copies of the Summary of National Internal Revenue Collections (CB-RCO Form No. 003), the Bureau of Internal Revenue's copies of RTRs with the corresponding Confirmation Receipts and the corresponding punched cards or tapes; 2. Transfer data in punched cards or tapes received from the Central Bank into the Bureau of Internal Revenue's tapes; Verify data from Central Bank's tapes against the Bureau of Internal Revenue's copy of RTRs with the corresponding Confirmation Receipts; 3. Reconcile totals extracted from cards or tapes received from the Central Bank with the totals in the Summary of Internal Revenue Collections; Resolve immediately any discrepancy; 4. Prepare a monthly summary of collection by kind of tax and agent bank including branches, a copy of which shall be furnished the Chief, Accounting Division. Include a summary of collections by banks in every city or municipality covered by payments through the banking system; 5. Prepare an annual alpha list of Revenue Tax Receipts issued, with the corresponding Confirmation Receipts, copies of which shall be furnished the following: a) Over-all list (Central Office) to Receivable Accounts Division; b) Over-all list (By Regions) to the Collection Branch of each region. 6. Match or update tax accounts established as receivables against abstract or alpha list of payments; 7. Forward the Bureau of Internal Revenue's copy of the Revenue Tax Receipts with the corresponding Confirmation Receipts together with the Summary of Internal Revenue Collections (CB-RCO Form No. 002) to the Bureau Auditor in accordance with the provisions of COA General Circular No. 133 dated September 1, 1975. G. The Accounting Division shall : 1. Secure copies of the following Central Bank reports: a) Summary Report of Collections of National Internal Revenue Taxes (CB-RCO Form No. 003); b) Monthly Total of Daily Summary of Collections by agent banks; c) Monthly Summary of Adjustments by Central Bank; d) Summary Report of Collections of National Internal Revenue Taxes (CB RCO Form No. 003). 2. Reconcile monthly totals of Daily Summary of Collections as reported by agent banks against the total of monthly summary of collections prepared by the Data Processing Service; 3. Utilize the monthly summary of collections by kind of tax and agent bank furnished by the Data Processing Service as source of accounting entries; 4. Resolve any discrepancy discovered in the reconciliation of the Daily Summary of Collections submitted by agent banks against the total Monthly Summary of Collections made by the Data Processing Service. H. The Fiscal Control Division shall : 1. Check and reconcile reports submitted by Accountable Forms Division, Administrative Branch, Collection Agent, RTR Issuing Officer, and any other office or unit authorized to issue RTRs on the number of RTRs received, issued, and unissued; 2. Investigate any discrepancy discovered from the reconciliation of such reports; and 3. Include in its monthly report of accomplishments the result of the audit and reconciliation processes undertaken. IV. Miscellaneous Procedures A. Procedures to be followed when a taxpayer pays the deficiency tax immediately after investigation even without an assessment notice or letter of demand. 1. In the Revenue Regional Offices a) The investigating units shall prepare an Authority to Issue Revenue Tax Receipts (ATIRTR) which shall be the basic document for the issuance of an RTR. b) The Collection Agent shall issue an RTR only if the Authority to Issue Revenue Tax Receipt (ATIRTR) is signed by the head of office the Revenue District Officer, the Chief of the Assessment Branch, the Chief of the Office Audit Section or their duly authorized representatives. 2. In the Central Office a) The investigating Divisions under the Office of the Commissioner shall prepare the Authority to Issue Revenue Tax Receipt (ATIRTR) for the collection of deficiency taxes and/or penalties found due upon investigation and which the taxpayer would like to pay even before final approval of the report of investigation. This shall be the basis for the issuance of an RTR; b) The Divisions of the Specific Tax Service shall prepare the Authority to Issue Revenue Tax Receipt for the collection of specific taxes; c) All Authorities to Issue Revenue Tax Receipts prepared in the Central Office shall be presented to the Receivable Accounts Division; d) The Receivable Accounts Division shall requisition RTR booklets from the Accountable Forms Division, which requisition shall be approved by the Assistant Commissioner designated by the Commissioner of Internal Revenue; e) The Receivable Accounts Division shall issue an RTR only upon presentation of an Authority to Issue Revenue Tax Receipt duly signed by the Chief of the Division concerned or his duly authorized representative; f) All the functions of, the guidelines to be followed and reports to be prepared by RTR Issuing Officers as defined in paragraph II-A-3 shall apply to those issuing RTRs in the Receivable Accounts Division; g) The Collection Enforcement Division shall perform the functions and assume the responsibilities of the Reconciliation Officer prescribed in paragraph III-B-2 for the RTRs authorized to be issued in the Central Office; and h) The functions performed and the responsibilities assumed by the Assessment Branch in the Regional Offices shall be discharged by the Assessment Service in the Central Office. B. Dishonored Checks The Collection Service shall: 1. Take delivery of the dishonored checks from the Central Bank; 2. Institute immediately collection proceedings on the dishonored checks in accordance with existing policies and procedures; 3. Furnish the Assessment Service with copies of the collection letters issued for inclusion in Form 40.00; and 4. Submit to the Accounting Division a monthly report of all dishonored checks. C. Lost RTRs The procedure prescribed for the reporting of accountable forms that are lost shall also be applicable to lost RTRs. D. Exception to the use of RTRs during special campaigns in Revenue Districts where the RTR System is in use and where there are only a few authorized agent banks which are located in the center of towns or cities. Whenever Revenue District Offices conduct special campaigns in the barrios or sitios which are far from the poblacion or the center of municipalities and cities where the authorized agent banks are located, the Revenue Regional Director may authorize the use of Revenue Official Receipts (BIR Form No. 25.24) for tax collections during the campaign. In authorizing the issuance of the Revenue Official Receipts, the control and security of the collections shall be taken into account. Collections made through the issuance of the Revenue Official Receipts shall be reported separately from that received through the RTR System and all requirements under existing accounting and auditing procedures shall be complied with. E. All monthly reports required in the Order shall be submitted within twenty (20) days after the end of each month. F. The Revenue Regional Directors shall be held responsible for the efficient implementation of and strict compliance with the provisions of this Revenue Memorandum Order, particularly on the timely submission of the required reports. G. The Revenue Service Chief (Administrative) shall synchronize all trips to and from the Central Bank involved in delivering reports thereto and taking delivery of documents and reports therefrom. V. Repealing Clause Provisions of all Previous Revenue Memorandum Orders and other issuances which are inconsistent herewith are hereby repealed. VI. Effectivity This Order takes effect on January 2, 1979. aisa dc EFREN I. PLANA Acting Commissioner of Internal Revenue REVENUE TAX RECEIPT CONFIRMATION RECEIPT