Procedure in the Processing of Quarterly Income tax Returns of Corporations Required Under Presidential Decree No. 30, dated October 27, 1972, as Implemented by Revenue Regulations No. 12-72, Dated December 1, 1972

December 20, 1972 REVENUE MEMORANDUM ORDER NO. 40-72 SUBJECT : Procedure in the Processing of Quarterly Income tax Returns of Corporations Required Under Presidential Decree No. 30, dated October 27, 1972, as Implemented by Revenue Regulations No. 12-72, Dated December 1, 1972 TO : All internal revenue officers, employees and others concerned The following procedure, shall be followed in the receiving and processing of quarterly returns of net taxable income of corporations, BIR Form 1702Q: A. Receiving, transmittal and sorting of returns 1. Receiving of returns Quarterly income tax returns of corporations shall be received in any of the following offices: a. Income Tax Division in the National Office b. Assessment Branch in revenue regional offices c. Revenue District Offices d. Collection Agent's Offices The returns (both original and duplicate) shall bear the stamp of or notation of the date the returns were filed in said offices. On the spaces provided for, the official receipt number, the date of payment and amount paid shall be clearly indicated by the employee receiving the return and/or payment of the tax due. In places where payment through banks is the prescribed procedure, the Tax Payment Acceptance Order Number shall be indicated instead of the Official Receipt Number. Where the return shows an amount due, but no payment is made, the notation "No Payment" shall be made on the spaces provided for the payment data. 2. Transmittal of Returns a. Returns received in the Income Tax Division shall be transmitted to the Assessment Branch of the revenue region having jurisdiction over the return while those received in Revenue District Offices or the Collection Agents Office shall be transmitted to the Assessment Branch of their respective Revenue Regional Office. b. The returns shall be accompanied by a transmittal list showing the name and address of the corporation, the TPAO Number or Official Receipt Number, as the case may be, date of payment and amount of tax paid. "No Payment" returns shall be listed separately from the taxable and fully paid returns. Exempt returns shall also be covered by a separate transmittal list. c. Sorting of Returns 1. Returns received in the Assessment Branch shall be sorted by Revenue Districts in the Revenue Region; 2. Returns pertaining to other regions shall be transmitted to the corresponding revenue region covered by a transmittal letter enumerating, therein the returns transmitted and indicating also the payment data (TPAO or OR Number, date of payment and amount paid). B. Numbering of Returns 1. Before the returns are numbered, they shall first be arranged alphabetically and blocked into bundles of 100 returns. 2. The returns as arranged alphabetically shall then be serially numbered in the same manner that the annual corporate returns are numbered, with the exception of the classification code, which shall be "Q" with the number of the quarter indicated, as Q1, Q2, Q3; thus, a quarterly return for the first quarter of 1973 of a corporation for Revenue District No. 34 shall be assigned the following number: 34-Q1-7-00001-73 The above set of numbers composing the assessment number signifies the following: 34 = Revenue District Code Number Q1 = Classification Code (First Quarter) 07 = Revenue Regional Office Number 00001 = Serial Number of Return 73 = Taxable Year 3. Transition Returns Under Revenue Regulations No. 12-72, the filing of quarterly returns for more than one quarter is allowed although the payment is on a quarterly basis. Thus, a calendar year corporation is allowed to file one return for the period from January 1, 1972 to September 30, 1972, or three quarters. The return is required to be filed on or before January 15, 1973 but only 1/3 of the tax is payable upon filing. Illustration: If a calendar year corporation files its return in Quezon City for three quarters (January 1, 1972 to September 30, 1972) on January 4, 1972, the numbering should be as follows: 26-Q123-6-00001-72 All quarterly returns of a corporation for one year shall bear the same Assessment Number. C. Disposition of Original and Duplicate Returns 1. After the returns are numbered, the duplicate copies of the returns shall be segregated from the original copies. 2. The original copies of the returns in blocks of 100 returns, covered by a block control sheet shall be transmitted to the Data Processing Center. After the processing, the original copies of the returns shall be transmitted by the Data Processing Center to the Regional Office where they shall be filed permanently in the Administrative Branch. 3. The duplicate returns shall remain in the Assessment Branches. Each return for the first quarter shall be inserted in a folder arranged consecutively by Assessment Number. The duplicate copies of the returns for the second and third quarters of the same taxpayer shall also be inserted in the folder with its first quarter return. 4. To the duplicates of the quarterly returns shall also be attached the duplicate of the final return for the taxable year. D. Final Return The final return shall be processed in the manner prescribed in the procedure for Handling and Processing of Annual Income Tax Returns. E. Effectivity The procedures embodied in this memorandum order shall take effect immediately and all those concerned are hereby enjoined to comply strictly with the provisions thereof. MISAEL P. VERA Commissioner of Internal Revenue