Guidelines for the Supervision of Assessment Fieldmen and for the Evaluation of their Performance

November 18, 1975 REVENUE MEMORANDUM ORDER NO. 61-75 SUBJECT : Guidelines for the Supervision of Assessment Fieldmen and for the Evaluation of their Performance TO : All Service Chiefs, Regional Directors, Division Chiefs, District Officers and All Others Concerned I. SUPERVISION It shall be the responsibility of Revenue District Officers and Chiefs of Assessment Branches to exercise close and effective supervision and control over the activities of assessment fieldmen to achieve quality investigation of tax cases. In this connection, the following guidelines are hereby prescribed: 1. Strict enforcement of existing requirements and procedures relating to the assignment of tax returns, including the issuance, recording, control and service of letters of authority; 2. Thorough processing and review of field audit reports to insure that the examination of the tax return, including the requirement for making an ANALYSIS OF RETURN, as a preliminary approach to examination, was conducted in compliance with the procedures prescribed by the Handbook on Audit Procedures and Techniques; and that the field audit report itself meets the requirements of the said Handbook and the forms for reporting prescribed. 3. An adequate call-up system shall be installed and implemented to enhance prompt investigation and reporting of tax cases, and to pin-point responsibility for inaction or delayed action on tax cases. II. EVALUATION OF PERFORMANCE As a matter of policy, the evaluation of performance and accomplishment of assessment fieldmen shall be based principally on deficiency tax assessment performance as hereinafter referred to; although in appraising overall performance such factors as number of tax returns verified, contribution to the promotion of tax consciousness, development of tax fraud cases, participation in special tax campaigns, etc. shall be taken into account. For purposes of evaluating deficiency tax assessment performance, the following guidelines are hereby prescribed: 1. A tax return assignment record for every assessment fieldmen shall be kept in the Revenue District Office as well as in the Assessment Branch. This record shall indicate the name and designation of the fieldman, and shall provide columns for showing, among others, the following: a. Number and date of letter of authority b. Date received by the fieldman c. Date served on the taxpayer d. Name and address of taxpayer e. Kind of business of taxpayer f. Gross Income g. Net Income h. Income tax per return i. Percentage taxes paid, if any, during the year j. Deficiency tax assessment: 1) Amount shown in report as paid 2) Amount assessed and demanded All tax returns assignments to a fieldman, including those made pursuant to Revenue Memorandum Order No. 57-75 dated October 15, 1975 providing for the separate investigation of a taxpayer's business and income tax liabilities, shall be reflected in the corresponding tax returns assignment record. 2. The assessment fieldman shall be credited for deficiency tax assessment performance consisting of amounts paid outright by the taxpayer upon the termination of the investigation and/or amounts assessed and demand on the basis of recommendations in the field audit report. 3. In any event, the credit for deficiency tax assessment performance shall be made after the corresponding field or office audit report has been processed and reviewed and approved and the letter of demand and assessment notice has been released. 4. The Assessment Branch shall keep its tax return assignment record up-to-date, including postings to the "Deficiency tax assessment" column; and within five (5) days of every month, the Assessment Branch shall furnish the Revenue District Officers detailed statements of deficiency tax assessment performance credited to each fieldman for the previous month, as reflected in the tax return assignment record. These statements shall be the basis of making postings to the "Deficiency tax assessment" column in the tax return assignment record kept in the Revenue District Office. Copies of these statements shall be furnished the Performance Control Division. 5. For control purposes, the Assessment Branch, in preparing the Form 40.00 in which is reflected deficiency tax assessments, whether paid outright by the taxpayer upon termination of the investigation or the subject of a letter of demand and assessment notice released during the month for which the report is prepared, shall also indicate in the Form 40.00 the Code number of the fieldman who reported the case giving rise to the deficiency tax assessment. 6. As much as possible, the evaluation of deficiency tax assessment performance of fieldmen shall be in relation to each tax return assignment. Strict compliance by all concerned with the provisions of this Order which takes effect immediately, is hereby enjoined. EFREN I. PLANA Acting Commissioner of Internal Revenue TAN 1456-040-3