Guidelines and Procedures in Handling TRU Validation and Upload of Suspense Records

April 23, 1998 REVENUE MEMORANDUM ORDER NO. 40-98 SUBJECT : Guidelines and Procedures in Handling TRU Validation and Upload of Suspense Records TO : All RDO/ISOS/RDC Personnel Concerned I. OBJECTIVES This Order is issued to: 1. Prescribe guidelines and procedures in handling TRU validation and upload of suspense records. 2. Define the roles and responsibilities of concerned personnel at the RDC, ISOS and RDO in the validation, upload and resolution of suspense records before and after ITS roll-out. 3. Prepare a clean and updated TRU database for a successful ITS rollout. II. POLICIES AND GUIDELINES 1. ISOS shall be responsible in uploading the encoded TRU Phase 1 records (individual and non-individual business entities), 60 days before the scheduled roll out, to the ITS database. 2. ISOS shall upload TRU Phase 2 records (Pure Compensation Earners), 30 days after roll-out, to the ITS database. 3. All records which were suspended upon uploading to ITS shall be returned to RDO concerned for resolution. 4. The RDO shall resolve and encode TRU suspense records directly to ITS. This will be done once the RDO has rolled-out. 5. Rollout schedule shall be based on Attachment "A". III. PROCEDURES A. For TRU Phase I Individual and Non-Individual Business Entities TRU Phase 1 forms are encoded by the RDO using the FoxPro Registration System. Once TRU data have been downloaded, no encoding shall be done using the FoxPro Registration System. Validation and uploading of TRU records shall be done at least 60 days before the scheduled roll-out: 1. The ISOS shall: a. Receive diskettes containing taxpayer records from RDO. b. Scan diskettes for viruses; return defective diskettes to concerned RDO c. Validate and upload records to ITS using a batch program. d. Generate the following reports: List of Suspended TRU Phase 1 Records During Validation List of Invalid TINs List of Branch Office Records List of Suspended TRU Phase 1 Records During Upload e. Forward the generated report files via File Transfer Protocol (FTP) to the RDC concerned. f. Prepare and forward to concerned RDOs, thru facsimile transmittal, statistical report on the number of validated and uploaded records. Furnish copy thereof to concerned RO- TRU Team, NO- TRU Team and RDC. 2. The RDC shall: a. Print the suspense report files sent by ISOS via FTP. b. Transmit the generated suspense reports to RDO for resolution. 3. The RDO shall: a. Resolve suspended TRU Phase 1 records. Refer to Attachment B for Suspense Resolution Procedures. b. Encode corrected/resolved TRU records directly to ITS. c. Resolve invalid TINs by encoding the records in the Registration System in ITS. d. Prepare and submit a weekly status report on TRU Phase 1 Resolution to the RO TRU Team and NO TRU Team. B. For TRU Phase 2 Pure Compensation Earners TRU Phase 2 forms are transmitted to and encoded by ISOS. Forms not submitted to ISOS 60 days before the RDO's rollout shall be encoded directly to ITS by the concerned RDO. The following procedures shall be observed in the validation and uploading of TRU records 30 days after the roll out: 1. The ISOS shall: a. Extract TRU records of the concerned RDO. b. Validate and upload records using a batch program. c. Generate the following reports: List of Suspended TRU Phase 2 Records during Validation List of Suspended TRU Phase 2 Record during Uploading d. Forward the generated report files via File Transfer Protocol (FTP) to the RDC concerned. e. Prepare and forward to concerned RDOs, thru facsimile transmittal, statistical report on the number of validated and uploaded records. Furnish copy thereof to concerned RO-TRU Team, NO-TRU Team and RDC. f. Transmit encoded and uploaded TRU Forms, including suspended Forms to concerned RDO. prcd 2. The RDC shall: a. Print the suspense report files sent by ISOS via FTP. b. Transmit the generated suspense reports to RDO for resolution. 3. The RDO shall: a. Resolve suspended TRU Phase 2 records by completing the information required in the form. Refer to Attachment C for Suspense Resolution Procedures. b. Encode corrected/resolved TRU records directly to ITS. c. Prepare and submit a weekly status report on TRU Phase 2 Resolution to the RO-TRU Team and the NO-TRU Office. IV. REPEALING CLAUSE All memorandum issuances or parts thereof inconsistent with the provisions of this Order are hereby modified, repealed or amended accordingly. V. EFFECTIVITY This Order shall take effect immediately. LLpr LIWAYWAY VINZONS-CHATO Commissioner 1998 ROLLOUT SCHEDULE ATTACHMENT TRU PHASE I RESOLUTION PROCEDURES No. Suspense Possible Reason(s) Suspense Resolution Procedures Category 1 Duplicate TINs - One of the taxpayers is a branch 1. Retrieve the forms of the taxpayers concerned several taxpayers which was encoded using the Head 2. Determine which of the taxpayers are branches using one TIN Office branch code. 3. Assign the correct branch code 4. Re-encode the branch information using the correct branch code More than one taxpayer was 1. Retrieve the forms of the taxpayers concerned issued the same TIN 2. Forward the form to the Head of the Registration and Regulatory Unit (RRU) for resolution Note: The following procedures should be accomplished by the Head of the Registration and Regulatory Unit 1. Determine the taxpayer who rightfully owns the TIN. This should be the taxpayer who first updated his record. 2. Assign new TINs to the other taxpayers 3. Re-encode the forms of the taxpayers using the new TINs 4. Send the taxpayers a letter containing the following information: the taxpayer's new TIN number why the taxpayer's TIN was changed The other TINs were erroneously 1. Retrieve the forms of the taxpayers concerned encoded 2. Use the district's records to determine each taxpayer's correct TIN. You can use any of the following sources of information: district records returns filed 3. Re-encode the taxpayers information using the correct TINs The taxpayer filled up two 1. Retrieve the forms of the taxpayer concerned separate forms 2. Reconcile the information contained in the two forms 3. Make the necessary corrections in either of the taxpayer's forms 4. Encode the reconciled form using the correct TIN The taxpayer's form was 1. Retrieve the form of the taxpayer concerned. If encoded twice the form cannot be located, segregate the form. On-line inquiry will be performed to retrieve the information in the form. 2. Validate the form for completeness and accuracy. 3. Re-encode the form. 2 Multiple TINs - a The taxpayer registered twice 1. Retrieve the forms of the taxpayer concerned single taxpayer and was assigned two TINs. 2. Forward the form to the Head of the Registration using multiple TINs and Regulatory Unit (RRU) for resolution Note: The following procedures should be accomplished by the Head of the Registration and Regulatory Unit. 1. Contact the taxpayer and inform him that he should select a TIN which he will use during transactions with BIR. 2. To confirm the TIN selected by taxpayer, send a letter instructing the taxpayer to use only the TIN selected. 3. Using the selected TIN, encode the record directly to ITS using the selected TIN. 3 Invalid TINs The TIN indicated on the 1. Retrieve the form of the taxpayer concerned form is not the same as 2. Encode the record using the correct TIN in the the TIN encoded in the Registration System of ITS. FoxPro Program The taxpayer did not 1. Retrieve the form of the taxpayer concerned indicate the right TIN 2. Use the following sources of information to on the form determine the correct TIN of the taxpayer: district records; returns filed; or ISOS TIN Masterfile 3. Indicate the correct TIN of the taxpayer on the form 4. Using the correct TIN, encode the record in the Registration System of ITS. Note: If the TIN was not found in the ISOS Masterfile, the taxpayer should be issued a new TIN 4 The taxpayer's A taxpayer with the same 1. Retrieve the form of the taxpayer concerned TIN already exist TIN was previously 2. Determine the reason for the TIN duplication by: in the ITS entered into ITS a) Comparing the case with the possible reasons outlined in Suspense Category 1 (for Duplicate TINs). Got to step 3; or b) Verifying the record in ITS to determine if it is a Head Office record which was updated record needs to be registered in ITS before branch office record can be encoded). Go to step 3. Follow the suspense resolution procedure outlined in Suspense Category 1 (for Duplicate TINs) 4. Transfer the registration of the Head Office record to the RDO. 5 Wrong Tax Type - The form types indicated on 1. Retrieve the form of the taxpayer concerned Form Type the form encoded in the 2. Re-evaluate the form and indicate on the combination FoxPro Program do not taxpayer's form the correct form types for the correspond to the forms tax type being registered used for the registered 3. Re-encode the tax types, form types, and ATCs tax type of the taxpayer directly to ITS 6 Wrong Tax Type - The ATCs indicated on the 1. Retrieve the form of the taxpayer concerned. ATC combination form and encoded in the 2. Re-validate the form and indicate on the FoxPro Program do not taxpayer's form the correct ATC (use the ATCs correspond to ATCs used indicated on the Tax-Form Type-ATC Job for the registered tax type. Aid provided) used for the tax type being registered 3. Encode the correct ATC 7 No Taxpayer The Taxpayer name 1. Retrieve the form of the taxpayer concerned Name for indicated on the form was 2. Encode the name of the taxpayer Individual not encoded into the Fox Pro Business Program Taxpayers No taxpayer Name was 1. Retrieve the form of the taxpayer concerned indicated on the form 2. Use the following sources of information to determine the name of the taxpayer: district records; returns filed; or contact the taxpayer to obtain the necessary information 3. Indicate the name of the taxpayer on the form 4. Re-encode the form 8 No Date of Birth The Date of Birth indicated 1. Retrieve the form of the taxpayer concerned for Individual on the form was not encoded 2. Indicate the taxpayer's Date of Birth on the form Business into the FoxPro Program 3. Re-encode the form Taxpayers No Date of Birth was 1. Retrieve the form of the taxpayer concerned indicated on the form 2. Use the following sources of information to determine the date of birth of the taxpayer: district records; returns filed; or contact the taxpayer to obtain the necessary information 3. Indicate the date of birth of the taxpayer on the form 4. Re-encode the form 9 No Spouse Name The Spouse Name indicated 1. Retrieve the form of the taxpayer concerned for individual on the form was not 2. Indicate the Spouse Name on the form Business encoded into the Fox Pro 3. Re-encode the form Taxpayers with Program married personal exemption 1. Retrieve the form of the taxpayer concerned 2. Use the following sources of information to determine the name of the taxpayer's spouse: district records; returns filed; or contact the taxpayer to obtain the necessary information 3. Indicate the name of the taxpayer's spouse on the form 4. Re-encode the form 10 No Registered The Registered Name 1. Retrieve the form of the taxpayer concerned Name for Non- indicated on the form was not 2. Indicate the registered name on the form Individual Business encoded into the FoxPro 3. Re-encode the form Taxpayers Program No Registered Name was 1. Retrieve the form of the taxpayer concerned indicated on the form 2. Use the following sources of information to determine the registered name of the taxpayer: district records; returns filed; or contact the taxpayer to obtain the necessary information 3. Indicate the registered name of the taxpayer on the form 4. Re-encode the form 11 No organization The Organization Date 1. Retrieve the form of the taxpayer concerned Date for Non- indicated on the form was 2. Indicate the Organization Date on the form Individual Business not encoded into the 3. Re-encode the form Taxpayers FoxPro Program No Organization Date was 1. Retrieve the form of the taxpayer concerned indicated on the form 2. Use the following sources of information to determine the organization date of the taxpayer: district records; returns filed; or contact the taxpayer to obtain the necessary information 3. Indicate the organization date of the taxpayer on the form 4. Re-encode the data directly to ITS 12 No Address The Address indicated on 1. Retrieve the form of the taxpayer concerned form was not encoded 2. Encode the address of the taxpayer into the FoxPro Program No Address was indicated 1. Retrieve the form of the taxpayer concerned on the form 2. Use the following sources of information to determine the address of the taxpayer: district records; returns filed; or contact the taxpayer to obtain the necessary information 3. Indicate the address of the taxpayer on the form 4. Re-encode the form 13 No Tax Type Tax type information/ 1. Retrieve the form of the taxpayer concerned Registration attachments was not 2. Re-encode the form encoded in the Fox Pro Registration System Note: If the form cannot be retrieved, the information must be transcribed on a form using the information encoded in the FoxPro Registration System. The RDO should contact the taxpayer and ask him to validate and sign on the form. ATTACHMENT "C" TRU PHASE II SUSPENSE RESOLUTION PROCEDURES All forms of records encoded by ISOS shall be forwarded to the concerned RDOs for archiving. TRU forms whose records have been suspended during validation and uploading shall be retrieved by the RDO for resolution and direct encoding to ITS. RDOs will resolve the suspended records by completing the information required in the form and encoding the form directly to ITS. No. Suspense Possible Reason(s) Suspense Resolution Procedures Category 1 Duplicate TINs - More than one taxpayer 1. Retrieve the forms of the taxpayers concerned several taxpayers was issued the same TIN 2. Forward the form to the Head of the using one TIN Registration and Regulatory Unit (RRU) Note: The following procedures should be accomplished by the Head of the Registration and Regulatory Unit 1. Determine the taxpayer who rightfully owns the TIN. This should be the taxpayer who first updated his record. 2. Assign new TINs to the other taxpayers 3. Re-encode the forms of the taxpayers using the new TINs 4. Send each the taxpayers a letter containing the following information: the taxpayer's new TIN number why the taxpayer's TIN was changed The other TINs were 1. Retrieve the forms of the taxpayers concerned erroneously encoded 2. Use the district's records to determine each taxpayer's correct TIN. You can use any of the following sources of information: district records; and returns filed 3. Using ITS, re-encode the taxpayers' information using the correct TINs. The taxpayer filled up two 1. Retrieve the forms of the taxpayer concerned separate forms or the form 2. Reconcile the information contained in was encoded twice. the two forms 3. Make the necessary corrections in either of the taxpayer's forms 4. Using ITS, encode the reconciled form with the correct TIN 2 Multiple TINs - The taxpayer 1. Retrieve the form of the taxpayer concerned. a single registered twice and 2. Forward the form to the Head of the taxpayer using was assigned two TINs Registration and Regulatory Unit (RRU) Multiple TINs - for resolution Note: The following procedures should be accomplished by the Head of the Registration and Regulatory Unit 1. Contact the taxpayer and inform him that he should select a TIN which he will use during transactions with BIR. 2. To confirm the TIN selected by taxpayer, send a letter instructing the taxpayer to use only the TIN selected. 3. Using ITS, encode the record with the selected TIN. 3 Invalid TINs The taxpayer did not 1. Retrieve the form of the taxpayer concerned indicate the right TIN 2. Use the following sources of information on the form to determine the correct TIN of the taxpayer: district records; returns filed; or ISOS Masterfile 3. Indicate the correct TIN of the taxpayer on the form 4. Using ITS, re-encode the taxpayer's form with the correct TIN Note: If the TIN was not found in the ISOS Masterfile, the taxpayer should be issued anew TIN 4 The taxpayer's A taxpayer with the same 1. Retrieve the form of the taxpayer concerned TIN already TIN was previously 2. Determine the reason for the TIN duplication by: exists in the ITS entered into ITS a) Comparing the case with the possible reasons outlined in Suspense Category 1 (for Duplicate TINs). Got to step 3; or b) Verifying the record in ITS to determine if it is a Head Office record which was updated in ITS by other computerized RDOs (HO record needs to be registered in ITS before branch office record can be encoded). Go to step 4. 3. Follow the suspense resolution procedure outlined in Suspense Category 1 (for Duplicate TINs) 4. Transfer the registration of the Head Office record to the RDO 5 No Taxpayer The Taxpayer's Name 1. Retrieve the form of the taxpayer concerned Name indicated on the form was 2. Indicate the taxpayer name on the form not encoded into the 3. Encode the form FoxPro Program No Taxpayer's Name 1. Retrieve the form of the taxpayer concerned was indicated on the form 2. Use the following sources of information to determine the name of the taxpayer: district records; or returns filed 3. Indicate the taxpayer's name on the form 4. Encode the form 6 No Spouse Name The Spouse Name 1. Retrieve the form of the taxpayer concerned for married indicated on the form was 2. Indicate the Spouse Name on the form individual not encoded into the 3. Re-encode the form FoxPro Program No Spouse Name was 1. Retrieve the form of the taxpayer concerned indicated on the form 2. Use the following sources of information to determine the name of the taxpayer's spouse: district records; returns filed; or contact the taxpayer to obtain the necessary information 3. Indicate the name of the taxpayer's spouse on the form 4. Re-encode the form 7 No date of Birth The Date of Birth indicated 1. Retrieve the form of the taxpayer concerned for individual on the form was not 2. Indicate the Date of Birth on the form Taxpayers encoded into the FoxPro 3. Re-encode the form Program No Date of Birth was 1. Retrieve the form of the taxpayer concerned indicated on the form 2. Use the following sources of information to determine the name of the taxpayer: district records; returns filed; or contact the taxpayer to obtain the necessary information 3. Indicate the date of birth of the taxpayer on the form. 4. Re-encode the form 8 No Address The Address indicated on 1. Retrieve the form of the taxpayer concerned the form was not encoded 2. Indicate the Address of the taxpayer on the form into the FoxPro Program 3. Re-encode the form. No Address was indicated 1. Retrieve the form of the taxpayer concerned on the form 2. Use the following sources of information to determine the address of the taxpayer: district records; returns filed; or contact the taxpayer to obtain the necessary information 3. Indicate the address of the taxpayer on the form 4. Encode the record using ITS 9 Employer's TIN Incorrect employer TIN 1. Retrieve the form of the taxpayer concerned does not exist in indicated on the form 2. Use the following sources of information to ITS determine the employer TIN of the taxpayer: district records; returns filed; or contact the taxpayer to obtain the necessary information 3. Indicate the TIN of the taxpayer's employer on the form 4. Encode the employee record using ITS Employer record not yet 1. Retrieve the form of the taxpayer concerned uploaded to ITS 2. Use the following sources of information to determine the employer TIN of the taxpayer: district records; returns filed; or contact the taxpayer to obtain the necessary information 3. Indicate the TIN of the taxpayer's employer on the form 4. Encode the employer record using ITS 5. Encode the employee record using ITS 10 Invalid Incorrect RDO or 1. Retrieve the form of the taxpayer concerned combination of Municipality Code 2. Indicate the correct RDO or Municipality RDO Code and indicated on the form Code on the form Municipality 3. Encode the record using ITS Code Note: If the form cannot be retrieved, the information must be transcribed on a form using the information encoded in the FoxPro Registration System. The RDO should contact the taxpayer and ask him to validate and sign on the form.