Guidelines and procedures on the Handling of Out-of-District/Out-of-System Tax Returns/Payment Forms received in Computerized and Non-Computerized Revenue District Offices (RDOs)

August 8, 1997 REVENUE MEMORANDUM ORDER NO. 53-97 SUBJECT : Guidelines and Procedures on the Handling of Out-of-District/Out-of-System Tax Returns/Payment Forms Received in Computerized and Non-Computerized Revenue District Offices (RDOs) TO : All Regional Directors, Revenue District Officers, Heads of Revenue Data Centers and Revenue Officers and All Others Concerned I. OBJECTIVES This Order is issued to: 1. Prescribe the procedures and guidelines in the proper disposition of Out-of-District/Out-of-System Tax Returns/Payment Forms. 2. Delineate the functions of each of office/division/unit in the handling of Out-of-District/Out-of-System Tax Returns/ Payment Forms. II. DEFINITION OF TERMS 1. Out-of-District (OOD) tax returns/payment forms Tax returns or payment forms received by an Authorized Agent Bank in an RDO other than the Home RDO of the Taxpayer. Specifically, this refers to: Case 1 OOD tax returns/payment forms belonging to a computerized RDO but received by a non-computerized RDO. Case 2 OOD tax returns/payment forms belonging to a non-computerized RDO but received by a computerized RDO. 2. Out-of-System (OOS) tax return payment forms Tax returns or payment forms received by a computerized RDO but belonging to another computerized RDO under a different Revenue Data Center. 3. Payment Form Form used by taxpayers to pay a tax liability not covered by a particular tax return. 4. Home RDO refers to the Revenue District Office having jurisdiction over the taxpayer's domicile or legal residence, principal office or place of business, where the taxpayer is required to register under the TRU program. 5. Computerized RDO An RDO where the Integrated Tax System or part of it is already in place. 6. Non-Computerized RDO An RDO where not one of the ITS application systems has been installed. III. PROCEDURES The following procedures shall be enforced by the RDOs, Revenue Data Centers (RDCs) and Information Systems Operations Service (ISOS) in handling Out-of-District/Out-of-System Tax Returns/Payment Forms. 1. For Case #1 OOD Tax Returns/Payment Forms belonging to a Computerized RDO but received by a Non-Computerized RDO A. Non-Computerized RDO 1. Segregate the Out-of-District Tax Returns/Payment Forms from the NPCS batches of returns/payment forms retrieved from the AABs; 2. Photocopy the Out-of-District tax returns/ payment forms and return the originals to the NPCS batches; 3. Batch the photocopies of the Out-of-District tax returns/payment forms received during the week. Prepare manually a BCS using the prescribed format; 4. Prepare a transmittal list for Out-of-District tax returns/payment forms received during the week indicating therein the bank branch code and the BCS number of the batch where the tax returns were taken; 5. Transmit the BCS together with the photocopies of the out-of-district tax returns/payment forms to the RDC concerned not later than three (3) days after the receipt of the documents for encoding of payment details; and 6. Furnish ISOS with copies of the transmittal list, BCS and returns/payment forms for updating of the NPCS Masterfile. B. Revenue Data Center (RDC) 1. Encode data of out-of-district tax returns/payment forms received from the Non-Computerized RDOs using the Bank Data Entry program; 2. Use the Bank DE program to download the data to diskette, or to a shared drive; 3. Perform Data Diskette Processing; 4. After uploading is completed, perform processing using the existing Bank Data Entry procedures; and 5. Process the data according to existing ITS procedures. C. Information Systems Operations Service (ISOS) 1. Encode data needed for updating NPCS files pertaining to the Out-of-district tax returns/payment forms received; 2. Update Masterfile of NPCS records of the Home RDO by including data from OOD returns/payment forms. Likewise, records of source RDO must be corrected by deleting previous data captured from the same OOD documents; and 3. File transmittal list of Out-of-District tax returns/payment forms. 2. For Case #2 OOD Tax Returns/Payment Forms belonging to a Non-computerized RDO but received by a Computerized RDO . A. Revenue Data Center (RDC) 1. Identify Out-of-District Tax Returns/Payment Forms through the Payment Suspense Worksheet where the correct RDO of the TP is identified through payment; 2. Use the appropriate function key: CTRLT (cf.SUG) to show the Payment Modify Screen wherein the suspended taxpayer transaction is flagged as OOD. Send to ISOS these OOD files via electronic transfer. 3. Segregate the out-of-district tax returns of taxpayers belonging to the computerized RDO from the CBR batches; 4. Encode data from the tax returns/payment forms; 5. Photocopy the out-of-district tax returns/payment forms; 6. Return the originals to the CBR batches; 7. Batch the photocopied tax returns/payment forms as follows: 7.1 Segregate the batching from old forms from the new forms; 7.2 Segregate the batching per the Home RDO code of the taxpayer; 7.3 Batch the tax returns/payment forms in 50's at the most; and 7.4 Manually prepare a Batch Control Sheet (BCS) A or B per batch with a BCS number as per the standard (e.g., 90001) with the Home RDO indicated by the receiving bank. 8. Send the batched out-of-district tax returns/payment forms to Home RDO. B. Non-Computerized RDO 1. Receive batches of out-of-district returns from Revenue Data Center; and 2. Process returns in accordance with RMO No. 29-91 which Prescribes the Procedures on the Receipt, Transmittal and Processing of Tax Returns Filed Thru the Banks under the New Payment Control System (NPCS). C. Information System Operations Service (ISOS) 1. Based on files sent by RDC via electronic transfer, extract out-of-district files from ITS database; 2. Merge files with NPCS files from pertinent non-computerized Home RDOs; and 3. Generate corrected NPCS filers reports. 3. For Case #3 Out-of-System Tax Returns/Payment Forms A. Source RDC shall: 1. Forward Out-of-System (OOS) tax returns/payment forms to appropriate RDC having jurisdiction over them. 2. Send data captured by source RDC to appropriate RDC via electronic transfer. B. Appropriate RDC shall process data from OOS tax returns/payment forms in accordance with prescribed ITS procedures. IV. EFFECTIVITY This Order shall take effect immediately upon approval. LIWAYWAY VINZONS-CHATO Commissioner of Internal Revenue