Reducing Delinquent Accounts Inventory To An Operating Minimum

May 23, 1967 REVENUE MEMORANDUM ORDER NO. 39-67 SUBJECT : Reducing Delinquent Accounts Inventory To An Operating Minimum TO : All Revenue Regional Directors, District Officers, Collection Agents, and Other Concerned In a memorandum letter, dated May 8, 1967, this Office decided that effective June 1, 1967, there shall be launched a nation-wide campaign to reduce our delinquent accounts to an amount which is the most accurate. To achieve this goal, the following instructions are hereby prescribed for the compliance of all concerned. cdt I. Regional Office A. Basis of Updating : The IBM list of collectibles as of May 1, 1967, and the IBM list of miscellaneous cases as of May 1, 1967 shall be the basis of updating. B. Procedures : 1. The Regional Director shall distribute the IBM delinquency list by revenue districts to the different branches of the Regional Office and direct the checking thereof against all pertinent records in the Regional Office. 2. Any discrepancy noted between the IBM list and the records shall be posted or noted in the IBM list. EXAMPLE: If the IBM list shows a collectible account of P1,000.00, but the records show it should be only P500.00, the P1,000.00 entry should be cancelled and the amount of P500.00 written over it. Indicate under the remarks column of the IBM list the reason or basis of the change made. 3. If an account is still open in the IBM list, but the records show that it was closed, the basis and/or information for closing the account shall be indicated under the remarks column of the IBM list. If the case is closed because of payments made, indicate the amount paid, the official receipt number, the date of issue, and the place of issue. If the account was closed because (1) of a decision of a court or by the Appellate Division or by any competent official of our bureau, (2) of an approved affidavit under Office Circular No. V-71, (3) the case has prescribed, (4) it was cancelled as a result of re-investigation, (5) or it was closed in any manner, the ATCA number and its date of issue shall be indicated under the remarks column of the IBM list. If the docket shows that the case has been closed but no ATCA has been issued, the appropriate ATCA should be prepared and duly approved. 4. If the accounts are found to fall under one of the different categories of the miscellaneous cases, indicate under the remarks column of the IBM list the category or kind of miscellaneous case the account fall. cdtech EXAMPLE: If the account was protested and protest was given due course, indicate the word "protested" and the date the case was assigned for re-investigation. If the account was placed under warrant of distraint and levy indicate under remarks column the letters "WDL" and the date the WDL was issued. If the case was filed in court, indicate under the remarks column of the IBM list, the word "court case" and the court docket number. If the account was transferred to other regional offices, indicate under the remarks column of the IBM list, the word "transfer case" and the date the transfer letter was sent, and so on . . . . 5. All notations entered in the IBM list shall invariably be signed by the official or employee who made the entry. Mere initial shall not be acceptable. 6. After the checking and comparison of the IBM list against all records in the regional office, every page of the IBM list shall be certified and signed by the Chief, Collection Branch as follows: "I hereby certify that the _____ (number) cases wherein entries on this page are made are in accordance with the records of this Office. 7 The up-dated IBM list, shall then be transmitted to the Data Processing Center under the signature of the Regional Director not later than the scheduled dates indicated below: Regions Nos. 4, 6, 7, and 8, July 15, 1967 All other regions June 30, 1967 C. Manpower The Regional Director shall utilize all available manpower he can muster to achieve this goal. II. National Office A. Task Force 1. Composition There shall be created a Task Force in the National Office as follows: Chairman Chief, Tax Accounts Division Members Asst. Chief, Records Division Asst. Chief, Income Tax Division Asst. Chief, Business Tax Division Asst. Chief, Appellate Division Asst. Chief, Prosecution Division Asst. Chief, Tobacco & Miscellaneous Tax Division Asst. Chief, Alcohol Tax Division 2. Duties and Responsibilities The over-all IBM list of delinquent accounts as of May 1, 1967 in possession of the Tax Accounts Division shall be the basis of action by the Task Force. It shall be the duty and responsibility of this task force to (a) Determine the whereabouts of dockets involving amounts over P10,000.00 or those National Office cases even though the demand is less than P10,000.00 as per records of the Records Division. The whereabouts of the dockets shall be noted on the space at the right hand portion of the IBM list. (b) Make a list of the accounts where the dockets are in one particular division. The representative in the Task Force of each division concerned shall review the docket in the possession of his division and indicate in the list the status of the account. (Refer to paragraph I-B-2 to B-4 hereof.) The list with the status of the account shall be certified by the chief of the division concerned, and shall be transmitted by the Chairman of the Task Force to the Chief, Data Processing Center not later than July 15, 1967. The list shall serve as a source document to up-date the records of collectible accounts. B. Data Processing Center On the basis of the source documents submitted to it by the different Collection Branches and the Task Force, the Data Processing Center shall up-date the records and prepare an updated list of collectible accounts as of July 1, 1967. The list shall be transmitted to all the different offices concerned not later than September 30, 1967. aisadc MISAEL P. VERA Commissioner of Internal Revenue May 29, 1967 The Honorable The Secretary of Finance M a n i l a S i r : I have the honor to forward herewith Revenue Memorandum Order No. 38-67, for your approval. Very truly yours, MISAEL P. VERA Commissioner of Internal Revenue