Guidelines in the Preparation of the Monthly Summary of Taxes Assessed and/or Demanded (BIR Form No. 40.00), and the Functional Use of the Copies Thereof

December 7, 1989 REVENUE MEMORANDUM ORDER NO. 51-89 SUBJECT : Guidelines in the Preparation of the Monthly Summary of Taxes Assessed and/or Demanded (BIR Form No. 40.00), and the Functional Use of the Copies Thereof TO : All Internal Revenue Officers and Others Concerned I. BACKGROUND AND OBJECTIVES: It has been observed that reports on the Monthly Summary of Taxes Assessed and/or Demanded (BIR Form No. 40.00) submitted by Regional Offices are not uniformly accomplished; hence, the copies of this report are not used functionally. The primary objective in accomplishing this report is to use it as a control device and to this end, the same shall serve the following purposes: 1. As Journal of Accounts Receivable where posting of payments to close the accounts are shown and as a source document to debit the number of dockets/accounts and the amounts involved to the General Control Ledger (BIR Form No. 12.53); 2. As Transmittal List of dockets transferred from the billing units to the Collection Enforcement Units; 3. As a basis by which the assessing units can determine whether or not all their deficiency tax assessment were actually billed or issued with assessment notices and letters of demand. This Order is therefore issued to establish a standard procedure in the preparation of BIR Form No. 40.00, and thereby achieve a more effective system of recording and controlling assessment notices and letters of demand issued pursuant to RMO Nos. 27-85 and 5-86. acd II. COVERAGE: This Order covers assessment notices and letters of demand issued on assessments classified either as National assessments coming from the National Assessment Service, Sector Operations Service, Excise Tax Service, Intelligence and Investigation Division, and Regional assessments coming from Assessment Branches, Special Investigation Branches and other Special Teams. For purposes of recording assessment notices and letters of demand issued under this Order, National assessments or Regional assessments shall be classified further as follows: a) National Accounts over P20,000.00 If in one docket there are several assessments and one of the assessment is classified as national account, all other assessments found therein shall likewise be classified as national accounts and be listed individually in the same report under BIR Form NO. 40.00. They shall be counted and debited as one docket or account in the General Control Ledger. b) Regional Accounts P5,000.00 up to P20,000.00 If in one docket there are several accounts and one of the assessments is classified as regional account and the rest are less than P20,000.00, they shall likewise be classified as regional accounts and be listed individually in the same report under BIR Form 40.00. They shall be counted and debited as one docket or account in the General Control Ledger. c) District Accounts Below P5,000.00 If in one docket all of the assessments are classified as district accounts, they shall be listed individually in the same report under BIR Form 40.00, but they shall be counted and debited as one docket or account to the General Control Ledger. III. PROCEDURES AND RESPONSIBILITIES: A. National Assessment Service, Special Operations Service, Excise Tax Service, Intelligence and Investigation Division and Other Special Teams 1. Transmit to the Accounts Receivable/Billing Division their reports of tax investigation (docket) together with the approved Transcript of Assessments for billing the assessments. 2. Receive from the Accounts Receivable/Billing Division duplicate copies of the report under BIR Form No. 40.00, and reconcile them with their list or record of Transcript of Assessments they have previously forwarded to the Accounts Receivable/Billing Division. 3. Call the attention of the Accounts Receivable/Billing Division of all Transcript of Assessments they found to have not been issued with assessment notices and/or letters of demand. 4. Accomplish the reports under BIR Form No. 40.00 for all deficiency tax cases where before the issuance of the assessment notices and letters of demand, payments were duly approved by authorities concerned to close the cases. Indicate in the report below the name of each taxpayer, the CR or ROR number, date paid and amount paid. Under the "Remarks" column of the report indicate the name of the examiner who conducted the examination. 5. Accomplish another report or list of cases investigated, but were found to have no tax deficiencies and transmit the dockets/reports to the Records Division, copy furnished the Accounts Receivable/Billing Division. 6. The National Assessment Service receives from the Regional Offices report of investigation (dockets) with Transcript of Assessments bearing national accounts for its review and confirmation of the assessments by the Deputy Commissioner; after which transmits the same to the Accounts Receivable/Billing Division, for billing and for collection enforcement. B. Accounts Receivable/Billing Division 1. Receives reports of investigation (dockets), together with the duly approved Transcript of Assessments from the National Assessment Service, Special Operations Service, Excise Tax Service, Intelligence and Investigation Division, and other Special Investigation Teams of the National Office. 2. Receives reports of investigation (dockets), together with the Transcript of Assessments (or copies of the assessment notices for cases about to prescribe) from the Regional Offices. acd 3. Segregates dockets with Transcript of Assessments and/or with assessment notices by type of account, by revenue region, and by source or office where the assessment originated. a. National assessments bearing national accounts coming from the National Assessment Service. b. National assessments bearing national accounts coming from the Special Operations Service. c. National assessments bearing national accounts coming from the Intelligence Investigation Division and other Special Investigation Teams. d. Regional assessments bearing national accounts coming from the Regional Offices, thru the National Assessment Service. e. National assessments bearing regional and district accounts. 4. Batches the dockets in 12's or less preparatory to their listing in BIR Form No. 40.00. There are only twelve (12) names and addresses which can be accommodated in each page of BIR Form 40.00. 5. Issues assessment notices and letters of demand for the collection of the deficiency tax assessments (including increments) based on the Transcript of Assessments. 6. Accomplishes separate BIR Form 40.00 report, on a daily basis, by batch of 12 or less, classified in five separate categories as indicated in the preceding paragraph // 3 (a to e). Indicate the names, addresses, assessment number, period covered, due date, and the amount assessed and/or demanded, and the totals of the basic tax, surcharge, interest and compromise penalties. 7. Provides at least three (3) vacant spaces in-between the names and addresses of taxpayers where payments, ATCA, and other subsequent actions taken can be posted, and reserve the "Remarks" column of the report for posting the "date" when the accounts were credited as closed cases to the General Control Ledger. Distributes copies of the report under BIR Form 40.00 exclusively for National accounts as follows: Original to be retained in the Accounts Receivable/Billing Division, as its source document to debit the number of dockets/accounts and amount involved to the General Control Ledger, and use it as Journal of Accounts Receivable. Duplicate attached to the monthly report under BIR Form 12.53; to be submitted monthly. Triplicate to the National Assessment Service, Sector Operations Service, Excise Tax Service, Intelligence and Investigation Division, Special Teams as the case may be for them to reconcile their record of assessments, to be submitted monthly. Quadruplicate to the Records Division as transmittal list of dockets for microfilming. 8. Holds the dockets for a period not exceeding two (2) months, to anticipate the receipt of letters of protest, and to record in BIR Form 40.00 and to other inventory control devices the protest or status of the deficiency tax assessments. 9. Informs in writing at the end of each month the Collection Branch concerned, the number of dockets/accounts and the amount assessed during the month bearing regional accounts so that the Collection Branches can accomplish their General Control Ledger at the end of each month, since the dockets for these accounts are not promptly sent to the Regional Offices. 10. Posts to BIR Form 40.00 the letters of protest indicating in the vacant spaces in-between the names of taxpayer as follows: "Protested, Docket to _____, dated _____________", and the CR of the "ROR number, the date and the amount paid" for payments made promptly, and reserve the space under the "Remarks" columns for posting the "date" the accounts were credited and reported as "closed" case in the General Control Ledger (BIR Form 12.53). 11. Transmits within two (2) months after billing the assessment notices and letters of demand for all dockets classified as national assessments regional and district accounts to the Collection Branch of the Region concerned and distributes the copies of the covering BIR Form 40.00 as follows: Original to the Collection Branch of the Region concerned thru the Records Division as transmittal list of dockets; to be done on a weekly basis. Duplicate to be attached to the monthly report of the General Control Ledger Triplicate to the Special Operations Service or to the National Assessment Service, as the case may be, for them to reconcile with their record of assessments; to be done on a monthly basis. Quadruplicate file copy for the Records Division to record the receipt, microfilming, and/or transfer of dockets. 12. Transmits with two (2) months after billing dockets bearing national accounts which remain outstanding to the Collection Enforcement Division through the use of the Transmittal Register (BIR Form No. 12.54). C. Assessment Branch, Excise Tax Branch, and Special Investigation Branch : 1. Transmit to the Collection Branch their report of investigation (dockets) together with the approved Transcript of Assessments for billing. 2. Receive from the Collection Branch the duplicate copies of the report under BIR Form No. 40.00 and reconcile them with their records or lists of Transcript of Assessments previously forwarded to the Collection Branch. 3. Call the attention of the Collection Branch of all Transcript of Assessments not issued with assessment notice and/or letters of demand. 4. Accomplish the report under BIR Form No. 40.00 for all cases approved as closed by the Revenue Regional Directors for amounts authorized for them under RMO Nos. 22-80 and 15-85. Indicate under each name of taxpayer the CR or ROR number, date paid, and amount paid. Indicate under the "Remarks" column the name of examiner who conducted the investigation. 5. Accomplish another report or list of cases investigated but which were found to have no tax deficiencies, copy furnished the National Assessment Service and the Collection Branch. 6. Transmit the dockets or record of investigation to the Administrative Branch for those under preceding paragraph III (C) (4 and 5). D. Collection Branch of the Regional Office : 1. Receives reports of audit/investigation (dockets) together with the duly approved Transcript of Assessment, from the Assessment Branch, or from the Special Investigation Branch. 2. Receives from the National Office original copies of BIR Form No. 40.00 report transmitting dockets with assessments bearing regional and district accounts. 3. Segregates dockets with Transcript of Assessments and/or with copies of assessment notices and letters of demand into: a) National assessments bearing Regional accounts; b) National assessments bearing District accounts; c) Regional assessments bearing Regional accounts; d) Regional assessments bearing District accounts 4. Batches the dockets separately by source of assessments and/or by type of accounts (either National assessment or Regional assessment) in 12's or less, as indicated in preceding paragraph III (D) (3) above. There are only twelve (12) names and addresses which can be accommodated in each page of BIR Form 40.00 5. Transmits at once by batch of 12 dockets or less the reports of investigation (dockets) with Transcript of Assessments (or with assessment notices and letters of demand for cases about to prescribe) classified as National accounts to the National Assessment Service by using the Transmittal Register (BIR Form 12.54), serially numbered, and distribute the copies as follows: Original to the National Assessment Service Together with the dockets; Duplicate to the Accounts Receivable/Billing Division, to be mailed separately; Triplicate to the Administrative Branch as record of the transfer of dockets; Quadruplicate file copy of the Assessment Branch. Note: Do not bill assessments or issue assessment notices or letters of demand involving National Accounts unless the case is about to prescribe. Likewise, no assessment notices or letters of demand are necessary when the taxpayers pay their deficiency taxes at once and the amounts involved are within the authority of the Regional Directors as provided for under RMO No. 22-80. Refer to paragraph III (C) (4) above. 6. Issues demand letters and assessment notices for the collection of the Regional assessments (including increments) involving Regional and District accounts based on the Transcript of Assessments attached to the docket. Dockets with assessment notices and letters of demand issued by the National Office need no longer be issued another assessment notices and letters of demand. cd 7. Accomplishes separate BIR Form 40.00 for each type of assessments (National assessments or Regional assessments) by type of accounts (Regional accounts or District accounts) and by Revenue Districts as indicated in preceding paragraph III (D) (3) above. Indicates on appropriate column the names, addresses, assessment number, period covered, due date, amount assessed and/or demanded, and the totals of the basic tax, surcharge, interest and compromise penalties. 8. Provides at least three (3) vacant spaces in-between the names and addresses of taxpayers where payments, ATCA, and other subsequent actions taken can be posted, and reserve the "Remarks" column for posting the "date" when the accounts were credited to the General Control Ledger (BIR Form 12.53) and reports as closed case. 9. Distributes copies of the report under BIR Form 40.00 exclusively for Regional accounts as follows: Original to be retained by the Collection Branch as its source document to debit the number of dockets/accounts and amount involved to the General Control Ledger, and use it as Journal of Accounts Receivable. Duplicate to be attached to the original copy of the report under BIR Form 12.53 to be submitted monthly. Triplicate to the Assessment Branch or Special Investigation Branch, as the case may be, for them to reconcile with their records or lists of Transcript of Assessments. Quadruplicate to the Administrative Branch. 10. Transmits within two (2) months dockets with demand letters and assessment notices issued bearing District accounts to the Revenue District Office concerned, on a weekly basis, by utilizing the original copy of Form 40.00, as transmittal list. Distributes copies of Form 40.00 as follows: Original as transmittal list of dockets to RDO's, as Journal of Accounts Receivable for the Revenue District Office and as source document to debit the number of accounts/dockets and amount involved to the General Control Ledger; to be done on a weekly basis. Duplicate attached to the General Control Ledger report as supporting document of the debit entries classified as National assessments; and submitted to the Accounts Receivable/Billing Division thru the Collection Branch within five (5) days after the end of each month. Triplicate to the Assessment Branch or to the Special Investigation Branch for them to reconcile it to their records or lists of Transcript of Assessments. Quadruplicate file copy of the Administrative Branch to record the transfer of dockets. Extra copy file copy of the Collection Branch. 11. Holds the dockets (Regional assessments, Regional or District accounts) for a period not exceeding two (2) months to anticipate the receipt of letters of protest, and to record prompt payments of deficiency tax to the BIR Form 40.00, and other inventory control devices maintained in the Branch. 12. Informs in writing the Revenue District Office concerned of the number of dockets/accounts and amount involved, at the end of each month, since the dockets are not immediately sent to them. 13. Posts letter of protest by indicating in the vacant space in-between payments and to the original copy of BIR Form 40.00 as follows: "Protested, Docket to ____________ date _________" and the "CR or ROR number, the date, and the amount paid", and reserve the space under the "Remarks" column for posting the "date" when the accounts were credited to the General Control Ledger (BIR Form 12.53). casia 14. Assigns dockets with unpaid assessment notices two (2) months after the assessments were billed, for collection enforcement, to the Collection Enforcement Unit of the Branch. 15. Revises the Form 40.00 prepared by the Accounts Receivable/Billing Division by listing separately in said form Regional accounts from the District accounts, and the latter classified by Revenue Districts. 16. Forwards promptly the dockets classified as National Assessment bearing district account to the Revenue District Office concerned through the use of revised BIR Form 40.00. Distributes the copies in the same manner as that indicated in paragraph III (D) (10). E. Collection Units of the Revenue District Offices : 1. Receives the original and duplicate copies of BIR Form 40.00 together with dockets classified separately as Regional assessments or National assessments, all bearing District accounts. 2. Attaches the duplicate copy of the report under BIR Form No. 40.00 to the original copy of the monthly report of the General Control Ledger for District accounts to support the debit entry. 3. Posts to the original copy of BIR Form 40.00 the CR or ROR number, the date, and the amount paid, of the ATCA number, the date issued, and the amount paid", reserving the space under the "Remarks" column for posting the "date" when the accounts were credited to the General Control Ledger and reported as closed cases. F. Duplicate Copies of BIR Form 40.00 : All duplicate copies of the report under BIR Form 40.00 which are attached to the original copy of the monthly report of the General Ledger (BIR Form 12.53) for Regional accounts, and for District accounts shall reach the Accounts Receivable/Billing Division within ten (10) days after the end of each month, together with the Consolidated Control Ledger of the regions, for nationwide consolidation. Eventually, they are forwarded to the Collection Performance Evaluation Division for evaluation. casia IV. REPEALING CLAUSE: Any existing Order or any provisions thereof which are inconsistent to this Order are deemed modified or revoked accordingly. V. EFFECTIVITY This Order takes effect immediately. (SGD.) JOSE U. ONG Commissioner of Internal Revenue