Amended Procedure in Processing Tax Returns/Documents on Remittances of Internal Revenue Taxes Through Authorized Agent Banks

September 23, 1970 REVENUE MEMORANDUM ORDER NO. 52-70 SUBJECT : Amended Procedure in Processing Tax Returns/Documents on Remittances of Internal Revenue Taxes Through Authorized Agent Banks TO : All Internal Revenue Officers and all concerned In order to achieve proper, coordinated and effective implementation of Executive Order No. 206 dated January 9, 1970 directing the Central Bank to receive payment of internal revenue taxes through the banking system, and in accordance with the latest arrangements with the Central Bank of the Philippines, there are prescribed hereunder the procedures to be followed beginning October 1, 1970: Accountable Forms Division 1. When issuing booklets of Tax Payment Acceptance Orders (TPAO) to the Chief, Collection Branch, always furnish simultaneously the DPC and the Internal Audit Department of the National Office as well as the Assessment Branch of the Regional Office concerned with a listing of such TPAO's issued, showing the inclusive numbers thereof and date of issue. Collection Agent 1. Whenever a tax return, demand letter, assessment notice, or other basic document of taxes enumerated in Executive Order No. 206 is presented for payment, prepare legibly a set of TPAO in quintuplicate in favor of an authorized agent bank of the taxpayer's choice. To facilitate the issuance of TPAO's, the personnel preparing them need not write the amount to be paid in words on the space provided. Only the amount in figures should be written in the space provided for. All other blanks should be properly filled. Indicate the assessment or demand number on the lower left-hand corner of the TPAO. 2. Do not fail to indicate the due date. If the due date falls on a Saturday or a legal holiday, the date to be indicated on the blank provided should be the date of the next business day. 3. Imprint the stamp of your office on the face of the basic document and annotate thereon the TPAO number, date and amount involved. Precede the number by "TP" to distinguish it from Official Receipt number. If no basic document was presented by the taxpayer, write on the face of the TPAO the following: "NO BASIC DOCUMENT PRESENTED". 4. Give the taxpayer his file copy of the basic document as well as the original , the triplicate and quadruplicate copies of the TPAO. Retain the quintuplicate copy in the pad as your file copy. 5. Staple duplicate copy of the TPAO to the upper left of the corresponding office copy/s of the basic document. Bundle them in batches of fifty or less depending on the quantity issued in a day (pertaining to a particular booklet), numerical in sequence according to TPAO numbers. Prepare a TPAO/Document Block Control Sheet (Exhibit A) in quadruplicate and indicate after each number (corresponding to TPAO No.) the kind of tax for which the same was issued. Cancelled TPAO's should be so indicated by placing the word "cancelled" after the corresponding number on the block control sheet. The original, duplicate, triplicate and quadruplicate copies of all cancelled TPAO's shall be included in the bundle of TPAO duplicate copies attached to the basic documents for transmittal to the Assessment Branch. Retain in the booklet the quintuplicate copy of the cancelled TPAO. Attach to the bundle the original, duplicate and triplicate copies of the block control sheet and retain in your files the quadruplicate copy. Accomplish the summary indicated in the lower left hand side of the block control sheet. Transmit the bundles daily to the Assessment Branch of the region having jurisdiction over you. 6. When quarterly withholding tax returns (BIR Form W-1) presented for payment covers a bigger amount than the remittance to be made, this will normally mean that monthly payments were made. In cases like this, request for official receipts of such monthly payments made, annotate the pertinent data at the reverse side of Form W-1 and sign it. Return official receipts to the taxpayer. Assessment Branch 1. Cheek completeness of TPAO copies as well as accompanying documents which may be a tax return, demand letter or assessment notice. Check also correctness of annotations on basic documents. The taxpayer account number should be indicated on all basic documents and TPAO's. Detach TPAO's from basic documents and transmit weekly to the DPC covered by the duplicate copy of the TPAO/Document Block Control Sheet. At the same time submit to the office of the Commissioner of Internal Revenue the triplicate copy of the TPAO/Document Block Control Sheet. 2. Arrange the block control sheets received during the week in accordance with the numerical sequence of TPAO. Number all block control sheets sequentially beginning with No. 001 every month. Indicate the number of the region, the month and the year. cd Example : The first TPAO/Document Block Control Sheet to be numbered in the Assessment Branch of Revenue Region No. 7, North Manila, in October of this year shall be numbered thus 7-10-001-70 7 represents the number of the region, 10 stands for the month of October, 001 is the serial number of the block control sheet, and 70 indicates the year. 3. Retain and maintain a complete file of original copies of TPAO/Document Block Control sheets. 4. Segregate basic documents according to kind of tax and process them in accordance with existing procedures. For the purpose of sending reminders for 2nd installment payments, the amounts covered by TPAO's as annotated on the basic documents shall be tentatively considered payments for the 1st installment. 5. All withholding tax returns shall be transmitted immediately for processing to the Withholding Tax Division, National Office. 6. Keep a control register of TPAO's issued to Collection Branches in the region using as basis the listings furnished by the Accountable Forms Division, and periodically post issued numbers as reflected in the TPAO/Document Block Control Sheets. 7. Any discrepancy detected in paragraphs (1) and (6) hereof shall immediately be resolved. Those that cannot be resolved in the region should be forwarded to the Office of the Commissioner. Office of the Commissioner 1. Receive daily from the Central Bank (a) daily summary of collections, and (b) duplicate copies of official receipts issued. 2. Distribute the documents in no. 1 hereof as follows: (a) daily summary of collections to the Chief, Accounting Division who shall be the custodian thereof. (b) duplicate copies of official receipts to the Data Processing Center, furnishing as well the totals thereof per daily summary of collections. 3. Initiate investigation of (a) discrepancies detected by Data Processing Center in matching payment data gathered from duplicate copies of official receipts against those extracted from TPAO's; (b) discrepancies detected by the Chief, Accounting Division in matching monthly totals of daily summary of collections of authorized agent banks against the monthly summary of collections prepared by the Data Processing Center, and (c) unresolved discrepancies forwarded by regional offices. Withholding Tax Division 1. Quarterly withholding tax returns (BIR Form W-1) shall be pre-audited to determine, among other things: a. no payment returns b. late payments c. underpayments d. no monthly breakdown e. unregistered or new employers f. changes in name/address g. final returns h. perfect returns 2. Post the perfect returns in the master list. 3. Take appropriate action on imperfect returns and post them also in the master list with proper annotation of action taken. Action on imperfect returns shall be continuing until the imperfections have been perfected. 4. Forward to Data Processing Center in batches of 100 covered by a block control sheet (Exhibit C attached). Data Processing Center 1. Process TPAO's by extracting all pertinent data shown thereon. 2. From the duplicate copies of official receipts issued by authorized agent banks pertinent data shall be extracted. 3. Data in no. 2 hereof, more particularly TPAO no. and amount shall be matched against those in no. 1 hereof for the purpose of detecting discrepancies or anomalies. Any discrepancy that cannot be resolved shall be reported immediately to the Office of the Commissioner for appropriate action. 4. A monthly summary of collections by kind of tax and agent banks including branches shall be prepared out of data extracted in no. 2 hereof and furnished the Chief, Accounting Division. The data on collection by banks should include a summary of collection of banks in every city or municipality covered by this order. 5. In processing quarterly withholding tax returns (BIR Form W-1) monthly payments indicated on the reverse side of the form shall likewise be verified as to correctness. Accounting Division 1. Reconcile monthly totals of daily summary of collections as reported by agent banks against the total of monthly summary of collections prepared by the Data Processing Center. 2. Utilize the monthly summary of collections by kind of tax and agent banks furnished by Data Processing Center as source of accounting entries. Repealing Clause The provisions of Revenue Memorandum Order No. 19-70 and any subsequent unnumbered memorandum on this subject matter which are inconsistent herewith are hereby revoked. Strict compliance with this Order is hereby enjoined. MISAEL P. VERA Commissioner of Internal Revenue EXHIBIT "A" Block No. (To be filled in by the Assessment Branch) TAX PAYMENT ACCEPTANCE ORDER & DOCUMENT BLOCK CONTROL SHEET Serial Nos.: TPAO Number Kind of Tax TPAO Number Kind of Tax ___01 ___51 ___________ ___26 ___76 ___________ ___02 ___52 ___________ ___27 ___77 ___________ ___03 ___53 ___________ ___28 ___78 ___________ ___04 ___54 ___________ ___29 ___79 ___________ ___05 ___55 ___________ ___30 ___80 ___________ ___06 ___56 ___________ ___31 ___81 ___________ ___07 ___57 ___________ ___32 ___82 ___________ ___08 ___58 ___________ ___33 ___83 ___________ ___09 ___59 ___________ ___34 ___84 ___________ ___10 ___60 ___________ ___35 ___85 ___________ ___11 ___61 ___________ ___36 ___86 ___________ ___12 ___62 ___________ ___37 ___88 ___________ ___13 ___63 ___________ ___38 ___87 ___________ ___14 ___64 ___________ ___39 ___89 ___________ ___15 ___65 ___________ ___40 ___90 ___________ ___16 ___66 ___________ ___41 ___91 ___________ ___17 ___67 ___________ ___42 ___92 ___________ ___18 ___68 ___________ ___43 ___93 ___________ ___19 ___69 ___________ ___44 ___94 ___________ ___20 ___70 ___________ ___45 ___95 ___________ ___21 ___71 ___________ ___46 ___96 ___________ ___22 ___72 ___________ ___47 ___97 ___________ ___23 ___73 ___________ ___48 ___98 ___________ ___24 ___74 ___________ ___49 ___99 ___________ ___25 ___75 ___________ ___50 ___00 ___________ SUMMARY : ISSUED: Nos. ___________ CANCELLED: Nos. ___________ UNISSUED: Nos. ___________ CERTIFIED CORRECT _____________________ Signature __________________________________ Received by: PRINTED NAME OF ISSUING OFFICER ___________________ __________________________ Receiving Officer City/Municipality ___________________ __________________________ Date Date