Prescribing the Use of Pre-numbered Tax Verification Notices (TVNs) in Lieu of Return Verification Orders (RVOs)

March 16, 1999 REVENUE MEMORANDUM ORDER NO. 33-99 SUBJECT : Prescribing the Use of Pre-numbered Tax Verification Notices (TVNs) in Lieu of Return Verification Orders (RVOs) TO : All Regional Directors, Revenue District Officers, Chiefs of the Assessment Division, Revenue Officers and Others Concerned I. OBJECTIVES This Order is issued: 1. To prescribe the use of pre-numbered TVNs in lieu of RVOs; 2. To identify the cases covered by TVNs; and 3. To provide the guidelines and procedures as well as the reporting requirements regarding TVNs. LLjur II. COVERAGE TVNs shall be issued only for the following non-audit cases in Revenue District Offices with their corresponding case codes: 1. Verification and processing of all capital gains tax returns (TVN-C) 2. Verification and processing of withholding tax returns involving property transactions (TVN-W) 3. Verification and processing of estate and donors tax returns, where the gross estate/gift is below the audit threshold under the existing audit program (TVN-E/TVN-D) 4. Verification and processing of claims for tax credit/refund, where the gross sales/income and claims are below the audit threshold under the existing audit program (TVN-TCR) 5. Protested cases under re-investigation in the RDOs (TVN-P) III. GUIDELINES AND PROCEDURES 1. The issuance of RVOs by Revenue District Officers shall be immediately discontinued. The verification and processing of cases covered by RVOs still outstanding at the time of the effectivity of this Order shall be continued until completed and reported. 2. TVNs shall be accountable forms to be requisitioned by the Regional Director from the National Office. TVNs shall be in three (3) copies to be distributed as follows:; Original - Taxpayer Duplicate - To be attached to the docket Triplicate - File copy of the issuing office 3. Pre-numbered TVNs shall be signed and issued by the Regional Director unless otherwise delegated in writing to the Revenue District Officer in order to facilitate the verification and processing of tax returns requiring the immediate issuance of certificates tax clearance. However, the Regional Director may revoke anytime in writing the authority of Revenue District Officers to sign TVNs when he deems it necessary. 4. One TVN shall be issued for each taxable year/period under verification. Only TVNs with attached official duplicate copies shall be signed by the Regional Director or his duly authorized Revenue District Officer. 5. While the pre-numbered TVNs are being printed and still not available, computer printed TVNs as shown in Annex "A" hereof may be used. The TVNs to be used in the interim period shall be sequentially numbered with the Case Code, RDO Code, year of issue and TVN number. cdlex For example, the first TVN to be issued for a capital gains tax return and the first TVN to be issued for estate tax return by RDO No. 39, South Quezon City for the year 1999 shall be numbered as follows: TVN-C-39-99-00001 TVN-E-39-99-00002 The numbering of TVNs shall be continuos irrespective of the Case Code. 6. All issuances of TVNs by Revenue District Officers, whether sequentially numbered as used or pre-numbered, shall be reported in a list to the Regional Director on or before every Wednesday following the week of issuance. 7. All cases covered by TVNs shall be completed and reported within sixty (60) days from the issuance of the TVNs. As in audit cases, BIR Forms 1717/0500 shall be accomplished in reporting these cases. 8. The existing policies and procedures on the issuance of Certificates Authorizing Registration (CARs) Tax Clearance Certificates (TCL2) shall be observed. 9. The assignment of protested cases for re-investigation shall be made in accordance with existing policies and procedures. 10. In case there is a deficiency tax determined after the verification of the tax returns and the taxpayer agrees to pay the same, an Authority to Accept Payment (ATAP) may be issued and signed by the revenue official who issued the TVN, except in computerized and pilot districts where the Payment Form is used instead of the ATAP. 11. The corresponding reports of verification shall be subject to review by the Assessment Division prior to final approval by the Regional Director. 12. All issuances, closures, assessments and cancellations pertaining to TVNs shall be recorded in a hard-bound TVN Register similar to the LA Register to be maintained and updated at the Office of the Regional Director. cdll IV. REPORTING REQUIREMENTS In case TVNs are issued by the Revenue District Officer, he shall submit to the Regional Director a weekly Report of all TVNs Issued (Annex "B") on or before every Wednesday following the week of issuance. All Revenue District Officers shall submit to the Regional Director a Monthly Report of Cases Verified, Processed and Closed (Annex "C") and Monthly Inventory of Pending TVNs (Annex "D") on or before the 15th day of the following month. The Regional Director shall submit to the Assessment Service a Monthly Summarized Report (Annex "E") of all TVNs closed, assessed and outstanding on or before the 20th day of the following month. V. DEVIATIONS FROM POLICIES Any deviation from the above policies will require a prior written approval/clearance coursed through the Assistant Commissioner, Assessment Service for final approval of the Commissioner of Internal Revenue. VI. VIOLATIONS Any issuance of TVNs for cases other than those enumerated in Section II of this Order and any violation of the policies and procedures prescribed herein will be referred to the Internal Affairs Service for investigation. In this regard, any violation hereof will be a ground for the relief, re-assignment or transfer of any concerned revenue official. VII. REPEALING CLAUSE All other issuances inconsistent herewith are hereby modified or repealed accordingly. VIII. EFFECTIVITY This Order takes effect immediately. (SGD.) BEETHOVEN L. RUALO Commissioner of Internal Revenue ANNEX A Tax Verification Notice ANNEX B Monthly Report of Tax Verification Notices (TVNs) ANNEX C Monthly Report of Cases Verified, Processed and Closed Covered by Tax Verification Notices ANNEX D Monthly Inventory of Pending Cases Coverey by Tax Verification Notices ANNEX E Monthly Summary of Cases Covered by Tax Verification Notices Closed, Assessed and Outstanding