Inventory Listing of Dockets in the Possession of Units Not Belonging to Any of the Accounts Control Centers, and Reconciliation of the Same with the Perpetual Inventory Control Records Maintained by the Latter

December 16, 1987 REVENUE MEMORANDUM ORDER NO. 41-87 SUBJECT : Inventory Listing of Dockets in the Possession of Units Not Belonging to Any of the Accounts Control Centers, and Reconciliation of the Same with the Perpetual Inventory Control Records Maintained by the Latter TO : All Internal Revenue Officers and Others Concerned As a rule, Accounts Control Centers (Receivable Accounts Division of the National Office for national accounts, the Collection Branch of the Regional Office, for regional accounts, and the Collection Unit of the Revenue District Offices for district accounts) keep and maintain the perpetual inventory of receivable accounts by utilizing the reports under BIR Form No. 40.00 and BIR Form No. 12.54 as "Journal of Receivables" and logbooks and index cards for dockets charged out to other units for further action. cdt In many cases, receivable accounts or dockets are charged out from the Accounts Control Centers and sent to appropriate units when the receivable accounts or assessments are validly protested, or when dockets are charged out for the enforcement of tax liens through distraint or levy, or when court action is necessary for the collection of the tax. But the same accounts remain in the inventory and in the General Control Ledger of every Accounts Control Center charged to handle and control them until they are returned to the same center where they came from as closed, reduced or returned for collection enforcement. In order to control, monitor and/or update the status and whereabouts of dockets or accounts in the hands of units other than any of the Accounts Control Center, it is necessary that these dockets be inventoried at regular intervals so that the same inventory shall be reconciled or matched with the perpetual inventory kept and maintained in the Accounts Control Centers. cd In view of the foregoing, all units charged to act on cases for reinvestigation, for court action, for collection enforcement, etc., shall submit their respective quarterly inventory of dockets by utilizing BIR Form No. 12.49 for accounts under or for reinvestigation BIR Form No. 12.50 for accounts for filing court action or pending in court; BIR Form No. 12.51 for accounts placed under suspense file for the whereabouts of the taxpayer is unknown; and BIR Form No. 12.52 for accounts to be placed under WDL or those assigned for the enforcement of tax lien by distraint or levy. These reports shall be prepared in three (3) separate categories: one report exclusively for National Accounts, another for Regional Accounts, and another for District Accounts. However, if in a docket involving the same investigation, there are two or more assessments and one of which involves a national account, all of the accounts shall be listed in the inventory to be submitted to the Receivable Accounts Division. If, on the other hand, there are two or more assessments, none of which involves a national account, but one of the assessments involves a regional account all of the assessments shall be listed in the inventory to be submitted to the Collection Branch. And if the assessments involved are all district accounts, they shall be listed in the inventory to be submitted to the Collection Unit of the Revenue District Office concerned. casia In all cases, however, a copy of the inventory shall be furnished the Collection Performance Control Division who shall monitor the compliance of the units concerned of this Order. This is one of the aspects that will be subjected to systems audit by the Collection Performance Control Division. When these reports are received by the appropriate Accounts Control Center, they shall be reconciled or matched with their respective perpetual inventory (BIR Form No. 40.00 and BIR Form No 12.54) and their corresponding Index Card (BIR Form No. 27.06) and logbooks for charged out dockets. During the matching process, the information to be posted to all of the perpetual inventory control devices shall be the following example: "AB-10-5-88 inventory" which means that the docket is with the Assessment Branch as of October 5, 1988 per inventory report, or AD-10-5-88 which means that the docket is with the Appellate Division as of October 5, 1988 per inventory report, etc. casia At the end of the reconciliation process the head of the Accounts Control Center shall report to the Collection Office stating 1) that he has received the inventory reports from other units such as, those cases under protest, cases for court action or pending court, and cases for WDL or under collection enforcement, etc., 2) that he has matched them completely with his perpetual inventory control devices. 3) that the office or unit where the dockets were charged were also given a list of dockets found missing in their inventory as a result of reconciliation or matching process to the perpetual inventory. Failure on the part of the Accounts Control Center to report to the Collection Office, the unit or office who failed to submit their inventory, the loss of docket in that unit or office shall be for the account of the Accounts Control Center concerned. cd i This Order shall take effect starting from the last quarter of Calendar Year 1987 and the inventory taking shall take place only during the first week of every January of each year, and thereafter, at the end of every quarter, the inventory taking and matching process shall be done quarterly to update the status of the account and to determine missing dockets. Any order or any provisions thereof which is inconsistent herewith is revoked or modified accordingly. (SGD.) BIENVENIDO A. TAN, JR. Commissioner