Amendment to RMO 21-99 (Prescribing the Functions of the Makati Data Center and the Devolved Functions in Document Processing for RDOs 47, 48, 49 and 50)

May 27, 1999 REVENUE MEMORANDUM ORDER NO. 58-99 SUBJECT : Amendment to RMO 21-99 (Prescribing the Functions of the Makati Data Center and the Devolved Functions in Document Processing for RDOs 47, 48, 49 and 50) TO : All Revenue Officials, Employees and Others Concerned I. BACKGROUND: RMO 21-99 was developed specifically for the four co-located Revenue District Offices of Revenue Region 8, Makati (i.e. RDOs 47, 48, 49 and 50). In view of the new directive of the Commissioner to devolve document processing functions of Revenue Data Centers (i.e. RDC Central Luzon and RDC Southern Luzon) to the Revenue District Offices (RDOs), standard procedures have to be drawn-up to ensure uniformity in document processing activities at the RDO level. aisadc II. OBJECTIVES: This order is issued to: a. Amend RMO 21-99 to include other co-located and identified non-co-located RDOs that will be rolled-out. b. Standardize procedures in document processing across RDOs. c. Delineate document processing functions devolved to the RDOs. III. DEFINITION OF TERMS: a) Co-located Revenue District Offices are district offices that are housed within or located near the Revenue Data Center. b) Non-co-located Revenue District Offices are district offices that are housed separately and located apart from the Revenue Data Center. IV. POLICIES AND GUIDELINES: a. The original copies of returns/documents from the Authorized Agent Banks (AABs) shall be picked up by the respective RDOs, while the duplicate copies shall be submitted by AABs to the Administrative Division of the concerned Regional Office. b. RDCs and Makati Data Center (MDC) shall continue to accept LBDE/EDT payment transactions from AABs. c. The RDC devolved activities in document processing shall be in addition to the current/existing functions of the RDOs. d. RDOs shall make use of the Limited Returns Processing System (LRPS) in capturing return information into the ITS excluding RDO 39, South Quezon City which shall apply LRPS when the modules are stabilized in Makati RDOs. e. The RDC and MDC Heads shall coordinate with the RDOs to ensure that the document processing activities are up-to-date to come up with timely and accurate tax collection information. V. PROCEDURES: A. At the Revenue District Office : 1. Office of the RDO shall : 1.1 Supervise daily processing of documents. 1.2 Elevate issues/concerns from the production units to the RDC/MDC. 2. The Retrievers shall : 2.1 Pick-up batches of Batch Control Sheet (BCS) and original returns from AABs; 2.2 Check completeness of physical returns against BCS; 2.3 Forward complete BCS and returns to Receipt and Control Unit. 3. The Receipt and Control - Data Controller shall : 3.1 Receive BCS and original returns from retrievers; 3.2 Log BCS and returns in the Documents Received From AABs Worksheet (Annex A). 3.3 Forward BCS and returns to Collection and Bank Reconciliation (CBR) Preprocessing - Data Controller. 3.4 Forward accomplished Documents Received From AABs worksheet on a weekly basis to the Bank Liaison Officer. 4. The CBR Preprocessing - Data Controller shall : 4.1 Receive BCS and returns from Receipt and Control. 4.2 Affix BCS Number on each of the returns in the batch. LLjur 4.3 Segregate BCS-A and BCS-B 4.4 Identify and segregate BCS-A (random selection) for Bank Branch Performance Check (BBPC). 4.5 Forward all BCS-B and the remaining BCS-A that will not undergo BBPC to Return Processing System (RPS) Preprocessing. 4.6 Check for bank procedural errors on the selected BCS-A and accomplish Bank Branch Performance Statistics Form (BIR Form 2841; Annex B). 4.7 Forward BCS and returns (with or without errors) together with Form 2841 to the CBR Data Verifier. 5. The CBR Data Verifier shall : 5.1 Receive BCS, returns and Form 2841 that have undergone BBPC. 5.2 Verify on screen whether the uploaded data matches with the information appearing in the actual returns/payment forms. If with discrepancy on the amount paid, accomplish BIR Form 2841. 5.3 Segregate BCS and returns without procedural and encoding errors and forward to RPS Preprocessing - Data Controller. 5.4 Encode BIR Form 2841 with BCS procedural errors and Returns procedural errors. 5.5 Forward BCS and returns with procedural and/or encoding errors together with the encoded Form 2841 to Bank Document Analyst. 6. The RPS Pre-processing - Data Controller shall : 6.1 Receive BCS and returns from CBR Preprocessing - Data Controller, CBR Data Verifier, and Bank Liaison Officer. 6.2 Detach BCS from the returns and file BCS per bank. 6.3 Sort, classify and batch tax returns according to form type by RDO; a batch shall contain not more than 50 documents. 6.4 Segregate the returns that will undergo Limited Returns Processing System (LRPS) (Annex C). 6.5 Assign and indicate the Document Locator Number (DLN) in every return by means of rubber stamp and sequential numbering machine, reflecting the following ITS features: RDO Code - 3 digits Location code - 1 digit Year of Return - 2 digits Month Filed - 2 digits Sequence Number - 6 digits 6.6 Create and attach Batch Header Form to the batched returns. 6.7 Forward returns for LRPS to RPS Data Encoder. 6.8 Select/segregate returns for RDO investigation based on Audit Program and transmit to concerned offices. 6.9 Forward returns not selected for pre-audit/investigation to Administrative Division, Regional Office for safekeeping. 7. The RPS Data Encoder shall : 7.1 Encode the general taxpayer data as follows: Taxpayer Identification Number (TIN) Return period Document Locator Number (DLN) Date filed. 7.2 Encode specific information applying the LRPS. 7.3 Stamp/write the word "ENCODED" on the upper right hand side of the batch header form. 7.4 Forward encoded tax returns to Administrative Unit for temporary storage. 8. Bank Document Analyst shall : 8.1 Receive BCS and returns with procedural and/or encoding errors, together with the encoded Form 2841 from CBR Data Verifier. 8.2 Receive generated Batch Exception, BCS Summary and List of Late Batches Reports from CONE-RDC and sort by bank branch. 8.3 Verify validity of these reports against BCS and returns. 8.4 Photocopy BCS and returns with procedural and/or encoding errors and attach these to the Batch Exception Report. 8.5 Prepare preliminary notices of violations related to timeliness and accuracy of collection information and documents submitted by AABs. 8.6 Forward verified BCS, returns, Batch Exception Report, BCS Summary Report and List of Late Batches Report and the preliminary notices of violations to the Bank Liaison Officer. cdtech 8.7 Prepare and forward monthly reports on Batch Exception (Annex D) List of Late Batches (Annex E), and Bank Performance Statistics - Returns & BCS Procedural Errors (Annexes F-1 & F-2) to Collection Programs Division (CPD), Collection Service. 8.8 Attend to inquiries of AABs regarding the procedural and encoding errors they have committed. 9. Bank Liaison Officer shall : 9.1 Receive accomplished Document Received from ABBs worksheet on a weekly basis from Receipt and Control and weekly report on Transmitted Collection Data from Computer Operations Network Engineering (CONE) - RDC. 9.2 Compare data on Documents Received from AABs worksheet with data on Transmitted Collection Data. If with discrepancy, coordinate with AAB regarding failure to transmit collection data and/or documents. 9.3 Receive the verified BCS, returns, Batch Exception Report, BCS Summary Report and List of Late Batches Report and the preliminary notices of violations from the Bank Document Analyst. 9.4 Send Batch Exception Report with photocopy of BCS and returns, BCS Summary Report and List of Late Batches Report with the preliminary notices of violations to concerned AABs. 9.5 Evaluate AAB responses to issued preliminary notices of violations. Refer to Collection Programs Division, Collection Service AABs who fail to comply with preliminary notice of violation. 9.6 Forward original copy of the BCS and returns with procedural and/or encoding errors to RPS Preprocessing - Data Controller. 10. CBR/RPS Error Handler : 10.1 Receive Returns/Payment Suspense Report from CONE - RDC. 10.2 Resolve suspended returns/payment transactions. 10.3 Request for copy of returns from Administrative Unit, if applicable. 11. Administrative Unit : 11.1 Store returns according to DLN. 11.2 Retrieve returns needed by other sections, when requested. 11.3 Transmit those batches of returns with no issues (suspense, audit, other cases) to the Administrative Division, RO for storage. B. At the Revenue Data Center and Makati Data Center : 1. Office of the Head, RDC/MDC 1.1 Act on issues/concerns of RDOs to maintain up-to-update processing of documents. 1.2 Ensure the availability of reports as required by National Office (NO), Regional Office (RO) and/or RDOs. 2. The CONE, RDC/MDC shall : 2.1 Receive payment data from AAB through Electronic Data Transmission (EDT). 2.2 Upload payment data to the Integrated Tax System (ITS) database. 2.3 Generate reports needed by the NO, RO and/or RDOs as listed in Annex G. 2.4 Forward generated reports to concerned offices. 2.5 Attend to technical issues/concerns of RDOs. VI. Repealing Clause RMO 21-99 and other issuances or portions thereof not consistent with the provisions of this Order are hereby amended accordingly. casia VII. Effectivity This Order shall take effect immediately. (SGD.) BEETHOVEN L. RUALO Commissioner of Internal Revenue ANNEX A Documents Received from AABs ANNEX B Bank Branch Performance Statistics ANNEX C LIST OF FIELDS TO BE CAPTURED ANNEX D Monthly Batch Exception Report ANNEX E Monthly List of Late Batches ANNEX F-1 Monthly Bank Performance Statistics ANNEX F-2 Monthly Bank Performance Statistics ANNEX G LIST OF REPORTS TO BE GENERATED