Procedure in Processing Tax Returns, Documents and Tax Payment Acceptance Orders in Relation to the Payment of Internal Revenue Taxes Through Authorized Agent Banks in the Cities of Bacolod, Cebu and Davao Except the City districts, of Toril, Bunawan and Kapalong of the Latter City

December 14, 1970 REVENUE MEMORANDUM ORDER NO. 59-70 SUBJECT : Procedure in Processing Tax Returns, Documents and Tax Payment Acceptance Orders in Relation to the Payment of Internal Revenue Taxes Through Authorized Agent Banks in the Cities of Bacolod, Cebu and Davao Except the City districts, of Toril, Bunawan and Kapalong of the Latter City TO : All Internal Revenue Officers and Others 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, there is prescribed hereunder the procedures to be followed therein insofar as the cities of Bacolod, Cebu and Davao are concerned. A. Accountable Forms Division 1. When issuing booklets of Tax Payment Acceptance Orders (TPAO) to the Chief, Collection Branch of Regional Offices Nos. 13-Cebu City, 14-Bacolod City, and 18-Davao City, always furnish simultaneously the Data Processing Center and the Internal Audit Department of the National Office as well as the Assessment Branch of the regional office concerned with a listing of TPAOs issued showing inclusive numbers thereof and date of issue. B. Collection Agents and other Officers Authorized to Issue TPAO 1. Whenever a tax return, demand letter, assessment notice, or other basic document concerning 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 the figures. All other blanks in the form should be properly filled. Indicate the assessment or demand number on the lower left-hand corner of the TPAO. cd asia 2. Do not fail to indicate the due date. If the due date falls on a Saturday, Sunday 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 of the TPAO 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 in the case of the tax return, as well as the original, triplicate and quadruplicate copies of the TPAO. Retain the quintuplicate copy as your file copy. 5. Inform the taxpayer that he should now proceed to the bank he had selected to make the payment. He should surrender to the bank upon payment the original (white copy) and the triplicate (blue copy) of the TPAO. The quadruplicate copy should be retained by the taxpayer as his file copy. 6. Staple the 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. Attach to the bundle the original, duplicate and triplicate copies of the block control sheet and retain in your file 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. 7. 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 should be included in the bundle of TPAO duplicate copies attached to the basic documents for transmittal to the Assessment Branch. Retain the quintuplicate copy of the cancelled TPAO as your file. 8. 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 these, 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 the receipts for the monthly payments to the taxpayer. C. Assessment Branch 1. Check 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. 2. Arrange the block control sheets received during the week in accordance with the numerical sequence of the 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 Control Sheets. 4. Detach TPAO's from basic documents and transmit weekly to the Data Processing Center together with 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. 5. 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. 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 and reported to the National Office. D. Collection Branch 1. Requisition from the Accountable Forms Division blank forms of TPAO's. 2. Distribute blank forms of TPAO's to collection agents and such other officers of the Regional Office or Revenue District Office that may be authorized by the Regional Director to issue TPAO. 3. Maintain an inventory of TPAOs received from the Accountable Forms Division and issuances to the different officials authorized to issue. 4. In accordance with the arrangement with the Central Bank of the Philippines, the branch offices and head office of the authorized agent banks in the area covered shall deliver to the Regional Office of the Central Bank of the Philippines in the locality the pink copies of the Official Receipts covering payments of internal revenue taxes issued by them together with a copy of the daily summary of collections not later than 5:00 p.m. of the following business day. The Collection Branch shall be charged with the responsibility of securing these documents from the regional office of the Central Bank daily. 5. Reconcile the pink copy of the receipts with the daily report of collections to determine any differences; if there are any, the attention of the Central Bank Regional Office in the locality should be called. 6. Keep a record of these collections by maintaining ledgers where the daily report of collections as reconciled of the different agent banks in the locality are to be posted. At the end of the month, a report showing the total collections from each bank should be submitted to the Office of the Commissioner. 7. Receive returned checks from the Regional Office of the Central Bank which should likewise be duly recorded. 8. Take appropriate action on the returned checks by demanding from the taxpayer concerned the payment of the tax due together with penalties, if any. Upon settlement of the account which should be through the issuance of a TPAO, the original returned check may be returned to the taxpayer concerned. 9. Submit and forward to the Office of the Commissioner of Internal Revenue the following: a. Daily summary of the total collections of the different agent banks (Weekly). b. Pink copies of the receipts received from the Regional Office of the Central Bank (Weekly). c. Report on bouncing checks received from the Regional Office of the Central Bank and a copy of the action taken thereon (Weekly). d. Report on collections of returned checks showing, among others [Weekly]: (1) Name of taxpayer (2) Address (3) Tax proper (4) Interest and/or surcharge (5) Compromise (6) Total Amount (7) Kind of tax (8) Period covered (9) Date of payment e. Monthly report of collections per Sub-paragraph 6. E. Office of the Commissioner 1. Distribute the following documents: (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 total thereof per daily summary of collections. 2. Initiate the investigation of the following: (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. 3. Maintain records of collections of internal revenue taxes thru the banks. 4. Supervise the procedure of paying taxes thru the banks in the cities of Bacolod, Cebu and Davao. F. Data Processing Center 1. Process TPAO's by extracting all pertinent data shown thereon. 2. Extract pertinent data from the duplicate copies of official receipts issued by authorized agent banks. 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. 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 V-1) monthly payments indicated on the reverse side of the form shall likewise be verified as to correctness. G. 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. Strict compliance of 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 __87 _____________ __13 __63 _______________ __38 __88 _____________ __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