Closing of Accounts Receivable in amounts exceeding P20,000

August 31, 1973 REVENUE MEMORANDUM ORDER NO. 32-73 SUBJECT : Closing of Accounts Receivable in amounts exceeding P20,000 TO : All Revenue Operations Heads, Division Chiefs examiners and others concerned In view of the huge amount of accounts receivable of cases excess of P20,000 which need to be collected by summary remedies as provided for by RA 5203 and the fact that at present the examiners do not have too much investigation work, the following procedure for the closing of the abovementioned accounts is hereby promulgated for compliance of all concerned: I. Chief, Tax Accounts Division A. He shall prepare a summary list of all delinquent accounts, the preparation of the corresponding Warrant of Distraint and Levy (WDL) of which is under the jurisdiction of the National Office and compile the dockets corresponding to said accounts. B. The dockets should be reviewed to determine whether they have all been microfilmed and if any docket has not been microfilmed, it should be forwarded to the Records Division for microfilming. C. The dockets together with the list shall then be turned over to the Working Group of the Review Committee. II. Review Group A. For the purpose of reviewing the dockets of delinquent accounts, a Review Committee is hereby created to composed of the following: Miss Priscilla Gonzales Rev. Operations Head (Legal) Chairman Bernardo Carpio National Coordinator Member Mr. Leonardo Cabanero Rev. Operations Head (Assessment) Member Mr. Julian Tiongco Actg. Rev. Oprns. Head (Collection) Member B. To assist the Review Committee, a Working Group is hereby created composed of the following: Juan Corona Asst. Rev. Oprns. Head (Assessment) Group Head Eusebio Montano Area Coordinator Member Balbino Gatdula Chief, Law Division Member Atilano Gozum Asst. Chief, Income Tax Division Member Roberto Ocampo Asst. Chief, Agr. Nat. Resources (Audit) Div. Member Vicente Puno Asst. Chief, Manufacturing (Audit) Div. Member Ladislao Jimenez Asst. Chief, Mfg. (Audit) Division Member Cirilo Francisco Asst. Chief, Litigation Division Member C. The Working Group shall be charged with the following duties: 1. It shall go over the dockets received from the Tax Accounts Division to determine whether the assessments thereon can stand scrutiny in court. Before reviewing, however, it must first determine whether the docket has been microfilmed and if not it should be returned to the Tax Accounts Division for appropriate action. 2. Those assessment which can stand scrutiny in court shall be returned to the Tax Accounts Division for preparation of the Warrant of Distraint and Levy while those that cannot stand scrutiny in court should be recommended for closing. The memorandum for closing, adjustment, or reinvestigation should be attached to the docket and forwarded to the Review Committee. 3. If in the course of the service of the WDL, request for reinvestigation is escorted to by the taxpayer, the Working Group shall act on said requests to determine whether it should be given due course or not. D. REVIEW COMMITTEE 1. It shall exercise administrative supervision over the Working Group and act upon appeals on the action made by the Working Group such as the following: a. In the review of the dockets before preparation of WDL, all recommendations of the Working Group for cancellation, revision of assessment or reinvestigation shall be forwarded to the Review Committee for approval. If the Review Committee concurs with the recommendation of the Working Group, appropriate action by the units concerned shall be taken to facilitate the closing of the case. b. All requests for reinvestigation made during or after service of the WDL shall be reviewed by the Working Group. If action on the request for reinvestigation is favorable, the recommendation shall be passed upon by the Review Committee whose action therein will be final. E. To facilitate the work of the Working Group, the members thereof are further divided into sub-groups as follows: a. Group I Juan M. Corona Atilano Gozum b. Group II Balbino Gatdula Roberto Ocampo c. Group III Eusebio Montano Vicente Puno d. Group IV Ladislao Jimenez Cirilo Francisco III. Chief, Tax Accounts Division All reviewed cases by the Working Group sustaining the Bureau's action on the case shall be compiled and the corresponding warrant of distraint and levy shall be prepared. After the signature of the superior officer on the WDL prepared, the warrant together with the docket of the case shall then be distributed to the Divisions under the National Coordinator in equal number. The division receiving the docket should be required to sign for the dockets received from the Tax Accounts Division. IV. Division Chiefs under the National Coordinator A. The Chiefs of Divisions under the National Coordinator shall have custody of the dockets received from the Tax Accounts Division and shall have the responsibility to see to it that the dockets are not lost or tampered with. B. The WDL attached to the docket should be detached and distributed to the examiners in his division at the rate of two WDL for each examiner in the initial assignment. C. He shall follow up the progress of the service of WDL and may as the needs arise, call for progress reports on the status of the cases assigned. D. He must inform the examiner to whom the warrant was assigned that under no circumstance will he stop the service of the WDL. Any means or tactics employed by the taxpayer to delay service of WDL should be immediately reported to the superior officer and Chief of Division, who shall in turn communicate said report to the Review Committee who shall take final action on the case. E. Request for reinvestigation during service of the WDL should not be entertained and if the taxpayer insists on asking for reinvestigation which upon determination by the examiner appears to be meritorious, the taxpayer should be informed by the examiner that the request for reinvestigation will be forwarded to the Review Committee who has sole jurisdiction thereon. He shall not take any action on such request for reinvestigation such as reinvestigating the case on the basis of said request. F. The Chiefs of Divisions should inform the examiners under their jurisdiction that their performance in this work will be taken into account into the Reorganization of the Bureau. SEMINAR In order to facilitate the service of the WDL, a seminar will be conducted, among the examiners assigned to the divisions in the Office of National Coordinator. Such seminar will be conducted for 3 to 4 days as the case may be, either in the morning or in the afternoon. Examiners in the divisions concerned are hereby enjoined to attend the seminar to avoid trouble or delays later on when the WDL is served. cdt For this purpose, the Chief of the Tax Accounts Division shall make the necessary arrangements with the National Coordinator and the Chiefs of Divisions under him for the conduct of the seminar as soon as possible such as the time, place, subject matter, instructors and such other items necessary for the success of the seminar. All those concerned are hereby enjoined to follow strictly the provisions of this memorandum order. MISAEL P. VERA Commissioner of Internal Revenue TAN 1601-593-5