The BIR continues to strengthen its Third Party Matching system through the issuance of Revenue Memorandum Order(RMO) No. 7-2010 to enhance the handling of Letter Notices (LNs) generated through the RELIEF, Tax Reconciliation System(TRS), VAT Summary List of Sales and Purchases (SLSP) and the Third Party Matching-Bureau of Customs (TPM-BOC) Data Program.
The RMO covers income tax, VAT, Percentage Tax and Withholding tax liabilities for taxable year 2008 for individual and corporate taxpayers registered under the Large Taxpayers Service (LTS) and selected BIR Revenue Regions (RR4-Pampanga, RR 5-Caloocan,RR 6-Manila,RR 7-Quezon City, RR 8-Makati and RR 9-San Pablo).
Relative thereto, Commissioner Joel L. Tan-Torres has reconstituted the original Letter Notice Task Force (LNTF) that will directly report to him. The LNTF is composed of a team of Assessment Officers in the National, Regional and District Offices headed by Dr. Marina de Guzman, Chief of Staff Office of the Commissioner. The said Task Force shall be in operation until September 15, 2010, unless otherwise extended or earlier abolished.
Taxpayers are given ample time and opportunity to respond and reconcile their records with the BIR by follow-up letters within a prescribed number of days before they are issued a Letter of Authority (LA) and Notice of Informal Conference.
Those taxpayers who fail to settle his/her deficiency are endorsed to the over-all Head of the LNTF. They are either issued a Preliminary Assessment Notice (PAN)/Final Assessment Notice (FAN), Subpoena Duces Tecum (SDT) or if their under declaration is 30% or more, they are recommended for imposition of the administrative sanction of suspension or temporary closure of business.
LNs which remain unserved due to failure to locate the taxpayers after exhausting all possible means (verification thru MERALCO, telephone directories, internet search, SEC, assistance from the Barangay Captain/Business and Licensing Office of the LGU) shall be sent by registered mail to the taxpayer’s corresponding business address. If LN sent by registered mail was returned to sender, the LNTF may recommend the cancellation of the registration of the said taxpayers, then published in two (2) newspapers of general circulation.
Taxpayers have the recourse to file letter of protests against PAN/FAN and request for reinvestigation or reconsideration, or sign an “Agreement Form” in case they agree with the findings covered by the LNs.
Abatement of interest and penalties and installment payment are considered under special conditions as indicated in the RMO.
All activities or accomplishments of the LN Task Force or investigating offices are to be monitored online through the Information Delivery Portal (IDP) by the Office of the Commissioner through the Withholding Tax Division (WTD) and the Audit Information and Tax Exemption and Incentives Division (AITEID).
The RMO also incorporated administrative sanctions or a “revalida” of selected audit reports for those erring Revenue Officers (ROs) who failed to comply with the 30/60 day LN verification rule. Those ROs with exemplary performance will be rewarded or commended, according to Commissioner Joel L. Tan Torres.