The Bureau of Internal Revenue, through its Letter Notice Task Force (LNTF), is focusing on the monitoring of Letter Notices (LNs) issued for CY 2008, in compliance with Revenue Memorandum Order No (RMO) 7-2010 (dated 21 January 2010).Chaired by Dir. Marina De Guzman, Chief of Staff of the Office of the Commissioner, the LNTF will be supervising the enforcement of LNs issued to cover Income Tax, VAT, Percentage Tax and Withholding Tax liabilities for taxable year 2008. The LNs were issued to more than six hundred (600) individual and corporate taxpayers registered under six (6) of the Bureau’s largest Regional Offices: RR No.4, San Fernando, Pampanga; RR No. 5, Caloocan City; RR No. 5, Manila; RR No.7, Quezon City; RR No.8, Makati City; and RR No.9, San Pablo City.
The LNTF has since sent follow-up letters to a number of these taxpayers, urging them to respond to the LNs issued to them and rectify their tax payments. Failure on the part of any taxpayer to comply with the follow-up letter will be considered as sufficient basis for the Task Force to recommend for the issuance of a Letter of Authority (LA), a Subpoena Duces Tecum (SDT), or a Preliminary Notice of Assessment (PAN) / Final Notice of Assessment (FAN), as the case may warrant.
However, in the event that, on the basis of third-party information obtained by the Bureau, a taxpayer’s under-declarations were found to be thirty percent (30%) or more, the LNTF will immediately recommend the imposition of the appropriate administrative sanction of temporary suspension or closure of a business establishment as mandated under the National Internal Revenue Code.
The Bureau is committed to the continuing supervision of all issued LNs, and to the utilization of third-party information in encouraging the improvement of taxpayer compliance.