Clarification of Functions Between the Enforcement Service and Assessment Service

September 25, 1998 REVENUE MEMORANDUM ORDER NO. 71-98 TO : ACIRs for Assessment Service and Enforcement Service, All Regional Directors, Revenue District Officers and All Others Concerned SUBJECT : Clarification of Functions Between the Enforcement Service and Assessment Service 1. OBJECTIVES This Memorandum is issued to: 1.1 clarify the delineation of functions between the Assessment Service and Enforcement Service especially with respect to third party information gathering and the review of dockets of audit cases under the Enforcement Service; 1.2 clarify the flow of reporting with respect to the above functions. llcd 2. POLICIES 2.1 Third Party Information Gathering 2.1.1 The Third Party Information Unit (TPIU) created under Revenue Special Order (RSO) No. 767-98 which is tasked to gather data necessary to strengthen and intensify the development of fraud cases and policy cases of the Commissioner shall be a special unit under the direct supervision of the Enforcement Service. This unit shall assist the Commissioner in providing immediate and/or advance information necessary for the successful prosecution of tax fraud cases and identification of policy cases. 2.1.2 The TPIU shall only be responsible for gathering data which, in the opinion of the Commissioner, are crucial and immediately needed in the enforcement and development of fraud and policy cases under the Enforcement Service. 2.1.3 The Audit Data Bank Division (ADBD) under the Assessment Service, on the other hand, shall be responsible for gathering all other third party information necessary to intensify the data bank of the Bureau. As such, the ADBD shall assists all investigating units by providing them with the necessary data to improve assessment, collection and enforcement of tax laws. dctai 2.1.4 In this regard, the ACIRs for Assessment Service and Enforcement Service shall maintain a close coordination of their activities. Each Service shall likewise assist each other in developing a comprehensive database by sharing information gathered by their respective units. 2.2 Review of Dockets of Cases under the Enforcement Service 2.2.1 Audit cases under the Tax Fraud Division and policy cases under the Special Audit Teams created by the Commissioner shall be under the direct control and supervision of the Enforcement Service. In this regard, all such cases shall be subject to review by the Enforcement Service. 2.2.2 However, no case shall be considered close and terminated unless approved by the Commissioner. Thus, after review by the Enforcement Service, dockets of all cases under the Enforcement Service shall be elevated to the Office of the Commissioner for further review and final approval. 3. REPEALING CLAUSE 3.1 This RMO amends all prior issuances inconsistent herewith, particularly an unnumbered Memorandum of the Commissioner dated September 15, 1998 which is attached hereto as "Annex A"; and some provisions of RSO 767-98. 4. EFFECTIVITY 4.1 This RMO shall take effect immediately. prcd (SGD.) BEETHOVEN L. RUALO Commissioner of Internal Revenue