Procedures in the Receipt, Processing and Safekeeping of Tax Amnesty Returns and Statements of Assets, Liabilities and Networth Filed under Executive Order No. 41 Dated August 22, 1986

September 22, 1986 REVENUE MEMORANDUM ORDER NO. 34-86 SUBJECT : Procedures in the Receipt, Processing and Safekeeping of Tax Amnesty Returns and Statements of Assets, Liabilities and Networth Filed under Executive Order No. 41 Dated August 22, 1986 TO : Internal Revenue Officers and Others Concerned To ensure proper, uniform and expedient implementation of Executive Order No. 41 dated August 22, 1986, granting tax amnesty for the years 1981 to 1985, there are hereby prescribed the procedures in the processing of amnesty returns and statements of assets, liabilities and networth filed pursuant to said Order. I. Receiving and Numbering of Returns and Statements A. Returns and Statements BIR Form 187 is the return to be used in applying for tax amnesty. To be attached to this form are the following: For individuals, Estates and Trusts 1) BIR Form 187A, Statement of Assets, Liabilities and Networth, as of December 31, 1985. 2) Photo copy of BIR Form 184B filed under PD 1840 or if none was filed or is no longer available, a Statement of Assets, Liabilities and Networth as of December 31, 1980 on a separate BIR Form 187A. For Corporations and Partnerships 1) BIR Form 187B, Comparative Statement of Assets, Liabilities and Networth as of the tax years ending 1980 and 1985; 2) Certified true copy of the Balance Sheet attached to the 1980 income tax return or if no longer available, a Statement of Assets, Liabilities and Networth as of the end of 1980 on a separate BIR Form 187B. Corporations incorporated after January 1, 1981 shall submit a Statement of Assets, Liabilities and Networth as of date of incorporation on a separate BIR Form 187B; 3) Certified true copy of the Balance Sheet attached to the 1985 income tax return. If the return is filed by an agent, Agent's Authority shall be attached. B. Receipt of Returns and Statements 1. Officers authorized to receive returns The Regional Directors, Revenue District Officers or duly authorized internal revenue officers shall receive tax amnesty returns of taxpayers whose legal residences or principal places of business are within their respective areas of jurisdiction. Unless authorized, Collection Agents shall not accept returns and statements filed under Executive Order No. 41. In the case of non-resident citizens, returns shall be filed with or mailed to the Office of the Commissioner thru the Chief, International Operations Division, BIR National Office Building, Diliman, Quezon City. 2. Requirement in accepting returns Before accepting any amnesty return, the personnel authorized to receive the same shall see to it that the documents required are securely attached to the said return. If the return is not complete, the filer should be advised that he will not enjoy the immunities and privileges granted by Executive Order No. 41 unless he completes the return. 3. Stamping and signing of the returns All copies of returns and statements shall be stamped with the date of receipt and signed by the receiving officer. cd C. Numbering of Returns 1. File Number A file number shall be indicated on all copies of the returns and statements upon receipt thereof. The file number shall have the following components: a) Receiving Office Code Revenue District Office District Number Revenue Region Region Number International Operations Division IOD b) Payment Code If fully paid F If paid in installment I c) Main Serial Number Each receiving office shall start with 00001 for each classification (Individuals, Estates and Trusts or Corporations and Partnerships) d) Executive Order Number 41 e) Classification Code Individuals, Estates and Trusts A Corporations and Partnerships B 2. Samples of Numbering a) Return filed in the Revenue District Officer The first return filed by an individual at Revenue District No. 25, Caloocan City, and the tax due was fully paid shall have the following file number: 25-F-00001-41-A 25 District Number F Fully paid 00001 Serial Number 41 Filed under Executive Order No. 41 A Filer is an individual b) Return filed in the Regional Office The fifth return filed by a corporation paying the tax by installment in Regional Office No. 4-B shall be numbered as follows: 04B-I-00005-41-B. It will be noted that RDO number is no longer included since it was filed in the regional office. c) Return filed in the International Operations Division The second return filed by an individual in the International Operations Division and the tax was fully paid shall be numbered as follows: IOD-F-00002-41-A. 3. Register to be kept in Receiving Returns Each authorized receiving office (Revenue District Office, Regional Office and International Operations Division) shall keep a register of amnesty returns received showing the File No., name and address of filer, TAN, tax due and tax paid. cdt At the close of office hours on October 31, 1986, the register should be closed and forwarded to the Tax Amnesty Implementation Office, Bureau of Internal Revenue, National Office Building, Diliman, Quezon City not later than November 7, 1986. File numbers which were cancelled or not used should be noted in the register. II. Acceptance of Payments Payment shall be made upon filing the returns and statements. A. Payment thru banks 1. In places where tax payments are made through accredited agent banks, the Payment Order (PO) shall be issued by the BIR personnel authorized to accept returns. 2. Only the File Number (not filer's name) shall be indicated in the space provided for the "Name" in the PO. 3. The tax numeric code to be indicated are: Individual 1014-0002 Corporation 1024-0001 4. The PO Number shall be indicated on all copies of the return filed. The distribution of the copies of the PO shall be in the same manner as payment for all other taxes. B. Payments thru Collection Agents 1. In places where there are no accredited agent banks, the receiving officer shall prepare an Authority to Accept Payment (ATAP) in three copies. The original and duplicate are to be given to the taxpayer and the triplicate should be attached to the return filed. 2. ATAPs issued for tax amnesty payments shall be numbered. The number shall have the following components: a) Receiving Office Code Revenue District Office No., Revenue Region No. or International Operations Division (IOD) b) Receiving Officer Code Number The head of the Receiving Office shall assign a code number for each receiving officer under him, starting from number 01. c) Serial Number All receiving officers shall start with 001. d) Executive Order Number 41 Examples: d-1) ATAPs issued in Revenue District Offices ATAPs issued in RDO 25, Caloocan City shall be numbered as follows: (note that if there are three authorized Receiving Officers in the district, each shall be assigned a code starting with number 01 to 03). The first ATAP issued by the Receiving Officer assigned number 01 shall be numbered 25-01-001-41; while the first ATAP issued by Receiving Officer assigned numbers 02 and 03 shall be numbered by such receiving officers 25-02-001-41 and 25-03-001-41, respectively. d-2) For ATAPs issued in the Revenue Regions and in the IOD , the Receiving Office Code shall be changed to the number of the region or OID. So, for the 10th ATAP to be issued in Revenue Region 3B by its Receiving Officer No. 02 shall be numbered 03B-02-010-41. The third ATAP to be issued by Receiving Officer No. 01 of IOD shall be numbered IOD-01-001-41. 3. Only the file number (not filer's name) shall be indicated in the ATAP. 4. Collection agents shall indicate in the receipt the file number (instead of the name of the taxpayer), the tax numeric code and the amount paid. C. Installment Payment A taxpayer who qualifies and elects to pay his tax by installment pursuant to the provisions of Section 7 of Revenue Regulations No. 14-86, shall be issued at the time of the filing of the return, a PO/ATAP as the case may be, for the first installment and for each succeeding installment. The issuing office shall indicate the due dates of the installment in every PO/ATAP issued and shall inform the taxpayer to present it on the dates indicated thereon to the addressee bank or to the collection agent where the first payment was made. D. Due Dates of Payment 1. If the amount due does not exceed P50,000.00, the tax must be paid at the time of the filing of the return; 2. If the amount due exceeds P50,000.00 but is not more than P500,000.00, the tax may be paid in two equal installments, the first installment to be paid upon filing of the return and the second installment on or before December 1, 1986; 3. If the amount due exceeds P500,000.00, the tax may be paid in three equal installments, to wit: a) the first installment shall be paid upon filing of the return; b) the second installment shall be paid on or before December 1, 1986; c) the third installment shall be paid on or before December 31, 1986. 4. If any installment is not paid on the due date there shall be collected as part of the tax upon each unpaid amount a surcharge equivalent to 25% thereof. The total amount must be paid not later than one month from the due date of such installment, otherwise the filer shall not be entitled to the benefits of amnesty. Furthermore, no refund shall be granted. E. Preparation of Record of Payment A Record or Payment (Annex "A") shall be accomplished in duplicate by Receiving Officers for every return received by them. The original shall be kept on file in the receiving office for the purpose of identifying unpaid installments while the duplicate copy shall be forwarded to the Tax Amnesty Implementation Office (TAIO) not later than November 15, 1986, with the last batch of returns for transmittal. All pertinent information called for in the record of payment particularly the CR/ROR No. shall be filled up before the duplicate copy is forwarded to the TAIO. The confirmation receipt number should tally with that listed in the copy of the report of the bank (BIR Form 1256) in the possession of the District Reconciliation Officer. The Revenue Official Receipt (BIR Form 25.24) evidencing payment of amnesty tax should tally with what is listed in the Report of Collection (BIR Form 1231) submitted by Collection Agents. aisa dc Separate files shall be maintained in numerical sequence of file numbers for closed accounts and for those payable by installments. Accounts payable by installment shall be posted upon payment thereof. Unpaid taxes/installments shall be reported within five days from due date to the Tax Amnesty Implementation Office for collection and follow-up. The TAIO shall prepare in duplicate call-up letters (Annex "B") which shall be sent to taxpayers with unpaid accounts. Subsequent payments after the first installment shall be reported to the TAIO on the prescribed form (Annex "C"). This report shall be accomplished in triplicate, distributed as follows: Original TAIO Duplicate Regional Director Triplicate file copy of RDO Upon full payment of the tax due, the original copy of the Record of Payment with all information columns properly filled up shall be transmitted to the TAIO. aisa dc III. Transmittal of Returns and Statements by Receiving Offices The receiving office (Revenue District Office, Revenue Region, International Operations Division) shall perform the following procedures: 1. Sort the returns into the following categories: a) Filed by Individuals, Estates and Trusts Fully paid Paid by Installments Incomplete returns b) Filed by Corporations and Partnerships Fully paid Paid by Installments Incomplete returns 2. Bundle the returns as classified above into batches of fifty (50) returns. Incomplete returns, when completed, shall be bundled in the batch of Fully Paid Returns or those paid by Installments, as the case may be. However, any remaining incomplete return as of the last day for transmittal of all amnesty returns to the TAIO (November 15, 1986) shall be marked "Incomplete" and transmitted in a separate batch. 3. Accomplish the Transmittal List (Annex "D") in quadruplicate for every batch of 50 returns, including the last batch which may consist of less than 50 returns, and distribute as follows: Original and Duplicate to be attached to the batch of returns Triplicate Regional Director Quadruplicate File copy of Receiving Office Every page of the list should be numbered and the columns for tax due and amount paid totalled, the total amount carried forward to the succeeding page to arrive at the grand total on the final page. 4. Transmit to the TAIO the batches of returns and attachments (including incomplete returns) with covering transmittal lists, not later than Nov. 15, 1986. 5. The Regional Director and Chief, International Operations Division shall submit to TAIO a weekly summary report of the number of returns received and collections made within his area of jurisdiction. The summary report shall be transmitted to the TAIO not later than Tuesday of the following week by radio, telegram, telephone, or any of the fastest means of communication available in the locality. IV. Transmittal of Bouncing Checks Bouncing checks for amnesty payments shall be forwarded by the Revenue Accounting Division to the Tax Amnesty Implementation Office, instead of the Collection Enforcement Division, for action. V. Processing and Safekeeping of Returns and Statements at the Tax Amnesty Implementation Office The TAIO shall segregate the original copy of the returns and statements from the duplicate. The original copies shall be forwarded to the Revenue Computer Center as originally batched, covered by the original copy of the transmittal lists. RISSI shall acknowledge receipt of the documents through appropriate entries in the logbook of the TAIO. The duplicate copies of the returns and statements shall be kept on file at the TAIO. VI. Processing at the Revenue Computer Center The Revenue Computer Center shall take responsibility for the computerized processing of amnesty returns and statements received from the Tax Amnesty Implementation Office. Master files of the returns and statements shall be created in magnetic tapes and the following outputs generated: 1. Alpha list of amnesty returns filed by individuals, estates and trusts showing the file number, name, taxpayer account number, address, amount due and payment mode elected by the taxpayer. 2. Alpha list of amnesty returns filed by corporations and partnerships showing the file number, name, taxpayer account number, address, amount due and payment mode elected by the taxpayer. 3. Numeric list of amnesty returns filed by individuals, estates and trusts, showing the file number, name, taxpayer account number, amount due and payment mode elected by the taxpayer. 4. Numeric list of amnesty returns filed by corporation and partnerships showing the file number, name, taxpayer account number, address, amount due and payment mode elected by the taxpayer. 5. Alpha list of incomplete returns showing the file number, name, address, taxpayer account number and amount due. 6. Statistics derived from returns and statements as may be required by top management and other user agencies. 7. Monthly alpha transaction register showing the name, taxpayer account number, file number, ROR/CR number, date paid, amount due, amount paid, and balance due, if any. 8. Monthly numeric transaction register showing the name, taxpayer account number, file number, ROR/CR number, date paid, amount due, amount paid, and balance due, if any. 9. Final overall alpha transaction register showing the name, taxpayer account number, file number, ROR/CR number, date paid, amount due, amount paid and balance due, if any. 10. Final overall numeric transaction register showing the name, taxpayer account number, file number, ROR/CR number, date paid, amount due, amount paid, and balance due, if any. The master files for the amnesty returns and statements as well as the transaction tapes shall be kept at the Tax Amnesty Implementation Office. casia A back-up file for each of the master tapes and transaction tapes shall be maintained at the Revenue Computer Center. The returns and statements shall be transmitted back to the Tax Amnesty Implementation Office as soon as processing has been completed by the Revenue Computer Center. VII. Issuance of Certificate of Availment Certificate of Availment (Annex "E") shall be issued by the Tax Amnesty Implementation Officer for the Commissioner upon the request of the taxpayer. The certificate shall be issued only upon confirmation that full payment of the amnesty tax has been made from the records of the Revenue Accounting Division and that all requirements provided for under Executive Order No. 41 and its implementing regulations have been complied with. VIII. Confidentiality of Information Returns and statements transmitted to the Tax Amnesty Implementation Office and Revenue Computer Center shall be processed and/or filed separately from all other records of the office. No information whatsoever about the returns and statements shall be released without a written authority from the Commissioner of Internal Revenue . cd i IX. Effectivity This Order takes effect immediately. (SGD.) ROMULO M. VILLA Acting Commissioner