Amending Pertinent Provisions of Sections III and IV of RMO No. 33-99 and Clarifying Certain Provisions of RMO Nos. 33-99 and 36-99

August 26, 1999 REVENUE MEMORANDUM ORDER NO. 70-99 SUBJECT : Amending Pertinent Provisions of Sections III and IV of RMO No. 33-99 and Clarifying Certain Provisions of RMO Nos. 33-99 and 36-99 TO : All Revenue Regional Directors, Revenue District Officers, Chiefs of the Assessment Division and Special Investigation Division of Regional Offices and Others Concerned I. OBJECTIVES 1. To amend Sections III.3, III.4, III.11 and IV of RMO No. 33-99 regarding the issuance of Tax Verification Notices (TVNs), approval of corresponding reports of verification and reporting requirements; and 2. To clarify certain provisions of the subject RMOs in relation to the coverage of cases to be issued TVNs, approval of reports of investigation from the Special Investigation Division of Regional Offices, issuance of assessment notices, and the effectivity date for the usage of TVNs. II. GUIDELINES AND PROCEDURES 1. Section III.3 of RMO No. 33-99 is hereby amended to read as follows: "Pre-numbered TVNs shall be signed by the Regional Director unless otherwise delegated by him in writing to the Assistant Regional Director. In order to facilitate the verification and processing of tax returns requiring the immediate issuance of certificates/tax clearance in District Offices located far from the Regional Office, the signing of the TVNs may also be delegated in writing by the Regional Director to the Revenue District Officers. However, the Regional Director may revoke in writing. the authority of the Assistant Regional Director or Revenue District Officers to sign TVNs when he deems it necessary. The Regional Director shall furnish the Assistant Commissioner, Assessment Service with a copy of such delegation/revocation order immediately upon issuance thereof." 2. Section III.4 of RMO No. 33-99 is hereby amended to read as follows: "One TVN shall be issued for each taxable year/period under verification. Only TVNs with attached official duplicate copies of tax returns shall be signed by the Regional Director or his duly authorized signatory, except for the following: 4.1 Claims for tax credit refund filed on the basis of duly accomplished application forms as in the case of VAT claims, tax credit/refund on excise tax and erroneous payment; and 4.2 Protested cases with duly approved request for reinvestigation/reconsideration together with docket of the case. LibLex The foregoing attachments shall be mandatory for the issuance of TVN." 3. Section III.11 of RMO No. 33-99 is hereby amended to read as follows: "The corresponding reports of verification shall be subject to review by the Assessment Division prior to final approval by the Regional Director. For cases covered by TVNs issued by the Assistant Regional Director or Revenue District Officer, the reports of investigation shall likewise be subject to review by the Assessment Division prior to final approval by the Regional Director." 4. The following additional guidelines in the issuance of Tax Verification Notices shall be observed: 4.1 The issuance of Return Verification Orders (RVOs) should be stopped immediately. TVNs should have been issued in lieu of RVOs from the date of receipt of the copy of RMO No. 33-99 by the Regional Offices or from May 1, 1999, whichever date was earlier. 4.2 The practice of assigning cases in batches under one verification notice shall be discontinued. For this purpose, one TVN shall be issued for each case assignment. 4.3 LAs shall be issued to cover the investigation of taxpayers retiring from business irrespective of the amount of gross assets and gross sales of the taxpayer; hence, this tax case category was excluded in Section II, Coverage of RMO No. 33-99. 4.4 In relation to Section II.5 of RMO No. 36-99, all preliminary and final assessment notices on cases reported by the Revenue District Offices (RDOs) and the Special Investigation Division (SID) of Regional Offices shall be signed by the Regional Director. 4.5 Collection of capital gains, estate and donors' taxes including increments thereon as a result of voluntary filing of returns by taxpayers are considered collections from voluntary compliance and thus. shall not be included in the RDOs' Monthly Report of Assessments and Collections as a Result of the Audit Effort. Only deficiency collections and assessments resulting from the investigation/verification of tax returns, as well as the corresponding interest and penalties, shall be indicated in the said report. III. REPORTING REQUIREMENTS Section IV of RMO No. 33-99 is hereby amended to read as follows: The Revenue District Officer shall submit to the Regional Director the following reports: Name of Report Reference Due Date of Submission 1. Weekly Report of Tax Annex B every Wednesday Verification Notices Issued following the week of issuance Note: This report shall be submitted in case the issuance of TVNs is delegated by the Regional Director to the Revenue District Officer. 2. Monthly Report of Cases Annex C 15th day of the month Verified, Processed and Closed Covered by Tax Verification Notices 3. Monthly Inventory of Annex D 15th day of the month Pending Cases Covered by Tax Verification Notices The Regional Director shall submit to the Assessment Service the following reports: Name of Report Reference Due Date of Submission 1. Monthly Report of Tax Annex E 20th day of the month Verification Notices Issued 2. Monthly Summary of Annex F 20th day of the month Cases Covered by Tax Verification Notices Closed, Assessed and Outstanding IV. REPEALING CLAUSE This Order supersedes RMO No. 57-99. All other issuances inconsistent herewith are hereby modified or repealed accordingly. prcd V. This Order shall take effect immediately. (SGD.) BEETHOVEN L. RUALO Commissioner of Internal Revenue ANNEX B WEEKLY REPORT OF TAX VERIFICATION NOTICES (TVNs) ISSUED ANNEX C MONTHLY REPORT OF CASES VERIFIED, PROCESSED AND CLOSED COVERED BY TAX VERIFICATION NOTICES ANNEX D MONTHLY INVENTORY OF PENDING CASES COVERED BY TAX VERIFICATION NOTICES ANNEX E MONTHLY REPORT OF TAX VERIFICATION NOTICES (TVNs) ISSUED ANNEX F MONTHLY SUMMARY OF CASES COVERED BY TAX VERIFICATION NOTICES CLOSED, ASSESSED AND OUTSTANDING