Policies and Procedures on the Mandatory Return of Adopted Taxpayers to their Home Revenue District Offices (RDOs)

April 14, 1999 REVENUE MEMORANDUM ORDER NO. 44-99 SUBJECT : Policies and Procedures on the Mandatory Return of Adopted Taxpayers to their Home Revenue District Offices (RDOs) TO : All Revenue Officials and Employees Concerned I. BACKGROUND Due to the staggered roll out ITS REG functions to various RDOs, interim procedures were drawn that enabled computerized RDOs to adopt certain taxpayers belonging to non-computerized RDOs. These facilitated business transactions and the performance of the following REG functions: A. Registration/adding of a branch B. Issuance of tax clearance certificate (TCL2) to the taxpayer (one time transaction of a taxpayer) C. Issuance of Authority to Print (ATP) to the taxpayer even if the printer belongs to a non-computerized RDO by adopting said printer in the computerized RDO. II. OBJECTIVES A. To provide clear-cut procedures in returning adopted taxpayers to their home RDOs. B. To facilitate and expedite the clean-up, return of the adopted taxpayers to their home RDOs. C. To define the responsibilities of all offices involved. LibLex III. DEFINITION OF TERMS A. Adopted Taxpayer refers to a taxpayer who is currently registered in a computerized RDO of which he does not officially belong based on TRU/registration rules and policies. B. Home RDO refers to the district office (computerized or non-computerized) where the taxpayer is required to register under the TRU program/registration rules and policies. C. Adoptive RDO refers to a computerized district office who accommodated taxpayers belonging to non-computerized RDOs in order to perform certain functions of the Registration System. IV. POLICIES A. This issuance covers only the return to the home RDOs of adopted taxpayers who were accommodated by adoptive RDOs in order to perform certain REG functions. All other transfer requests will follow the prescribed procedures in the REG System Operations Manual for computerized RDOs and RMO No. 41-94 for non-computerized RDOs. B. The return of adopted taxpayers to their home RDOs is a mandatory process. This will ensure that taxpayer service is not hampered and confusion is avoided among BIR officials concerned. C. Upon REG rollout or upon upload of TRU data to ITS database, the home RDO will initiate the request (thru a letter) from the concerned adoptive RDO for the return of its adopted taxpayers. The request will be based on the rejected/suspended taxpayer's records with error code "TIN already exist" and determined to be existing in other RDOs, and the list of adopted taxpayers as prepared by the appropriate office. dctai D. The home RDO must confirm if the taxpayer is still within its area of jurisdiction, for, in the meantime, some taxpayers may have transferred to other RDOs. E. Only the Revenue District Officer, Assistant Revenue District Officer and the Chief of the Taxpayer Service Section of the adoptive RDO will be given access to do the on-line electronic transfer. F. The process of returning adopted taxpayers to their home RDO will not require the issuance of TCN and/or use of Form 1905. G. The adoptive RDO should return all adopted taxpayers upon request of the home RDOs. H. On-line records of open cases/transactions of adopted taxpayers will be tagged as "closed" by the adoptive RDO. I. The physical records of the open cases/transactions of the adopted taxpayers being transferred should be forwarded to the home RDO for manual processing. J. The adoptive RDO must ensure that physical records of adopted taxpayers are complete and in order before transmitting them to the home RDO for manual processing. K. The process of returning adopted taxpayers to their home RDOs should take at least one (1) day to a maximum of one (1) week counted from the date of request. L. Adoptive RDOs and home RDOs should closely coordinate and cooperate with one another for the successful return/transfer of all adopted taxpayers. V. PROCEDURES A . The Non-Computerized home RDO shall : (whose TRU records were unloaded in ITS database) 1. Analyze and verify the "Report of Suspended TRU Records" and the "Alpha List of Registered Taxpayers in the ITS Database" given by the RDC after every upload. 2. Select the adopted taxpayers from the "List of Suspended TRU Records" based on the rejected records with error code "TIN already exists", and the list of adopted taxpayers as prepared by the appropriate office. LLphil 3. Verify if said taxpayers are still within the jurisdiction of the home RDO. 4. Prepare a letter addressed to the Revenue District Officer of the adoptive RDO requesting that office to facilitate the return of the adopted taxpayers; furnish the Taxpayer Assistance Service a copy of the letter. 5. Upon receipt of the transfer confirmation from the adoptive RDO, provide the RDC with the listings of adopted taxpayers confirmed for transfer. 6. Request RDC to confirm the transfer of records. 7. Coordinate with adoptive RDO and RDC if there are discrepancies in records. 8. Encode records of the adopted taxpayers returned by the adoptive RDO in the stand-alone FoxPro Data Entry database. 9. Coordinate with RDC in updating the ITS registration data/records of the returned adopted taxpayers. 10. Closely coordinate with the adoptive RDOs until the return and/or transfer of adopted taxpayers is completed. 11. Confirm the successful return of the adopted taxpayers or the inaction on the request and inform TAS on the percentage of compliance. 12. For adopted taxpayers with previous transactions and/or open cases, manually track and/or process all cases/transactions by performing the following procedures: 12.1 Receive and acknowledge the transfer of the physical records of adopted taxpayers for manual processing. 12.2 Check and verify if the physical records are complete and in order. 12.3 Inform the adoptive RDO thru a written memo on any discrepancy and request the adoptive RDO to explain the discrepancies and provide the missing document. 13. Maintain a logbook for the returned adopted taxpayers as well as the returned dockets/physical records (See Annex A - standard format of logbook) 14. Prepare and submit to TAS a monthly status report on the adopted taxpayers requested for transfer to the home RDOs. (Annex D - standard report format) cdt B. The Computerized Home RDO shall : 1. Perform a registration inquiry against the National Office (NO) database to determine the cause of suspense files after every upload of TRU data and to verify if certain taxpayers are adopted by another RDO as triggered by the following scenarios: 1.1 When TRU data do not successfully pass the uploading stage prior to roll-out of the Registration System and remain to be "suspended TRU records" even after rollout of the Registration System. 1.2 When returns filed with the district turned out to be those of unregistered taxpayers; and 1.3 When taxpayers would like to transact business with a particular RDO but cannot do so because of absence of registration data. 2. Prepare a letter addressed to the Revenue District Officer of the adoptive RDO requesting that office to facilitate the return of the adopted taxpayers; furnish the Taxpayer Assistance Service a copy of the letter. 3. Closely coordinate with the adoptive RDOs until the return and/or transfer of adopted taxpayers is completed. 4. Confirm the successful return/transfer of the adopted taxpayers of the inaction on the request and inform TAS on the percentage of compliance. 5. Update the records of the adopted taxpayers returned by the adoptive RDO, if necessary. LLjur 6. For adopted taxpayers with previous transactions and/or open cases, manually track and/or process all cases/transactions by performing the following procedures: 6.1 Receive and acknowledge the transfer of the physical records of adopted taxpayers for manual processing. 6.2 Check and verify if the physical records are complete and in order immediately upon receipt. 6.3 Inform the adoptive RDO thru a written memo on any discrepancy or missing document and request the adoptive RDO to explain the discrepancies and provide the missing document within one (1) week from the receipt of the written memo. 7. Maintain a log book for the returned adopted taxpayers as well as the returned dockets/physical records. (See Annex A - standard format of logbook) 8. Prepare and submit to TAS a monthly status report on the adopted taxpayers requested for transfer to the home RDOs. (See Annex D for the Report Format) C. The Adoptive (computerized) RDO shall : 1. Receive and immediately act on the request of the home RDOs for the return of adopted taxpayers. 2. Verify the registration records of the taxpayers concerned and determine whether they are really adopted and do not fall within its jurisdiction. 3. Communicate with the home RDO thru a written memorandum on certain issues like discrepancies in the taxpayer's record and open cases/transactions. 4. Facilitate the return and/or transfer of adopted taxpayers through the on-line electronic transfer facility. 5. For adopted taxpayers without transactions, the return should take place within one (1) day from the date of request. cdtaui 6. For adopted taxpayers with open cases/transactions, manually close and/or process all cases/transactions by performing the following procedures: 6.1 Manually create corresponding debit/credit transaction to zero-out outstanding balance. (Refer to the CMS Operations Manual for the step by step procedures.) 6.2 Effect the transfer within one (1) week from the date of request. 6.3 Accomplish the Transmittal Slip for Adopted Taxpayers with Open Cases/Transactions (Annex C). Transmittal must be duly signed by the Revenue District Officer. 6.4 Ensure the physical records for transmittal are complete and in order. 6.5 Forward the physical records to the home RDO within two (2) days after the successful transfer is confirmed by the home RDO. 6.6 Provide the missing documents, if any, within one (1) week from the date of request of the home RDO. 7. Facilitate the transfer of adopted taxpayers to its home RDO using the Transfer Function Business Event: 7.1 If within RDC, press <CTRL T> only once to effect the transfer; 7.2 If across RDC, press <CTRL T> twice to effect the transfer. 8. Check if the taxpayer's status is changed from "A" to "X" to confirm the transfer. LLcd 9. Maintain a logbook for the transferred adopted taxpayers as well as the returned dockets/physical records. (See Annex B - standard format of logbook) D. Systems Operations Division of ISOS shall : 1. Generate the "List of Adopted Taxpayers" if home RDO and adoptive RDO are not within the same RDC. E. RDC shall : 1. Generate "Report of Suspended Records" and "Alpha List of Registered Taxpayers in the ITS Database" after the every upload. 2. Forward the "Report of Suspended Records" and the "Alpha List of Registered Taxpayers in the ITS Database" to the non-computerized home RDO. 3. Generate the "List of Adopted Taxpayers", if adoptive RDO and home RDO are within the same RDC. 4. Assist the non-computerized home RDO on the changes/updates of returned adoptive taxpayer's records, if any. F. The Taxpayer Assistance Service (TAS) shall : 1. Monitor and immediately act on the reports of home RDOs on the non-compliance of adoptive RDOs to the request to return adopted taxpayers. 2. Arbitrate and settle whatever disputes that may arise between the home RDO and adoptive RDO. 3. Consolidate and prepare reports on the adopted taxpayers requested for transfer to its home RDO. 4. Recommend appropriate sanctions for erring/faulty officials and employees, if warranted. prcd 5. Submit a monthly consolidated report on the adopted taxpayers request for transfer by the home RDOs to DCIR-Operations Group (See Annex E for the standard report format) VI. REPEALING CLAUSE All issuances of portions thereof not consistent with the provisions of this Order are hereby repealed or amended accordingly. VII. EFFECTIVITY This Order takes effect immediately. (SGD.) BEETHOVEN L. RUALO Commissioner of Internal Revenue ANNEX A Adopted Taxpayers Returned by Adoptive RDOs ANNEX B Adopted Taxpayers Returned to Home RDOs ANNEX C Transmittal Slip for Adopted Taxpayers with Open Cases/Transactions ANNEX D Status Report on Adopted Taxpayers Requested for Transfer