REVENUE ADMINISTRATIVE ORDER NO. 3-2023 issued on August 31, 2023 amends Sections III.I.1, III.I.3 and III.I.4 of Revenue Administrative Order (RAO) No. 3-2014 and Section II.I.2 of RAO No. 5-2019 relative to the functions of the Assessment Section, Collection Section, Client Support Section and Compliance Section under the Revenue District Office in the Revenue Region, to wit:
A. Assessment Section
i. Prepares list of taxpayers recommended for audit for approval of
the Commissioner;
ii. Conducts field audit investigation/verification covering the following
cases:
a. Automatically selected by the Audit Module;
b. Manually selected and approved by the Commissioner for
audit;
c. Applying for cancellation of business registration and/or
retirement or closure of business;
d. Applying for tax credit/refund other than Value-Added Tax
(VAT) and those under the jurisdiction of Legal Division;
e. With post-review findings relative to One-Time Transaction
(ONETT);
f. Approved for re-investigation; and
g. Other cases that are covered by the directive of the
Commissioner or his authorized revenue official;
iii. Processes VAT Refund claims of taxpayers other than claims of
direct exporters pursuant to Section 112 (A) of the National Internal
Revenue Code (NIRC) of 1997, as amended (this applies to RRs
without VAT Audit Section under the Assessment Division);
iv. Prepares and submits reports of investigation with relevant
supporting schedules and documents that shall comprise the audit
case docket of taxpayers, to the reviewing office of the Regional
Office;
v. Processes application for Certificates Authorizing Registration
(CARs) arising from ONETT such as payment for capital gains tax
on sale of real properties and shares of stocks, creditable
withholding tax, documentary stamp tax pertaining to transfers of
properties, estate tax, donor’s tax;
vi. Pre-audits Annual Information return (BIR Form No. 1604 CF and
1604 E with attachments such as Alphalist of Employees and
Payees) and prepares computation of recommended tax
deficiencies, if any, and endorses the same to concerned office for
collection enforcement;
vii. Identifies potential tax evaders and refers their cases to proper
offices for investigation and prosecution;
viii. Conducts ocular inspection for the determination of zonal value of
real property within the concerned RDO’s jurisdiction;
ix. Validates discrepancies arising from Tax Reconciliation System
(TRS) and RELIEF (Reconciliation Listing for Enforcement)
Programs and recommends for the immediate audit or investigation
of potential taxpayers based on the discrepancies noted;
x. Analyses stop-filers/non-filer cases of taxpayers under the
Taxpayer Account Management Program (TAMP) to determine
which are valid or not and endorses those that are invalid to the
concerned office for closure, and handles the resolution of those
determined as “valid Stop-filer cases”;
xi. Recommends issuance of Subpoena Duces Tecum (SDT) to
taxpayers who are not complying with the “Notice for Presentation
of Books”, and with the submission of Summary List of Sales (SLS),
Summary List of Purchases (SLP), Alphabetical List of Employees/
Payees subject to Withholding Tax and other relevant
document/records to be audited;
xii. Prepares report on Cannot Be Located (CBL) taxpayers that shall
be recommended for publication;
xiii. Witnesses destruction of obsolete or expired inventories and
prepares corresponding reports to the head of office for
consolidation in audit or investigation of taxpayers;
xiv. Evaluates Declaration of Loss sustained from casualty or from
robbery, theft or embezzlement submitted by taxpayer/s and
prepares corresponding reports to the head of office for
consolidation in audit or investigation of taxpayers;
xv. Prepares replies to queries (on-line and walk-in) pertaining to the
implementation of any tax related programs/systems/ processes;
xvi. Elevates to top management issues and problems encountered in
the implementation of tax-related programs/systems and processes
for resolution;
xvii. Conducts surveillance activities, inventory stocktaking and other
related activities, in coordination with other concerned offices such
as the Regional Investigation Division (RID), pursuant to a Mission
Order issued by an authorized revenue official;
xviii. Conducts post-evaluation of Point of Sales (POS) and Cash
Register Machines (CRM) granted permit by the Client Support
Section;
xix. Evaluates application for compromise settlement and/or abatement
of taxes pursuant to Section 204 of the NIRC of 1997, as amended;
xx. Assists the Client Support Section in the conduct of tax information
dissemination and briefings of new revenue issuances;
xxi. Ensures the correctness of availment of tax exemptions/ incentives
of cooperatives pursuant to Republic Act No. 9520 and
recommends revocation of Certificate of Tax Exemption (CTE) due
to any irregularity, fraud and violation of any provisions of the
National Internal Revenue Code of 1997, as amended, upon
verification using existing applicable BIR revenue issuances;
xxii. Evaluates Board of Investments (BOI) Income Tax Holiday (ITH)
dockets forwarded by the BOI thru Audit Information, Tax
Exemption and Information Division (AITEID) of any income not
subject to ITH and recommend the issuance of Letter of Authority
(LA), if warranted;
xxiii. Assists in the conduct of Tax Compliance Verification Drive
(TCVD); and
xxiv. Performs other functions as may be assigned.
B. Collection Section
i. Monitors and supervises the collection of all internal revenue taxes
within the jurisdiction of the RDO;
ii. Reconciles Authorized Agent Bank (AAB) collections indicated in
the Batch Control Sheet (BCS) against remittance or Consolidated
Report of Daily Collection (CRDC) information transmitted by the
concerned Bank Head Office;
iii. Ensures that tax collections across all payments channels are
timely and correctly uploaded/encoded in the Integrated Tax
System-Collection and Bank Reconciliation (ITS-CBR)/Internal
Revenue Integrated System – Collection Remittance and
Reconciliation (IRIS-CRR);
iv. Monitors, analyzes and resolves unpaid tax revenues based on the
data on unpaid/partially paid tax returns with tax due provided by
the Collection Performance Monitoring Division as extracted from
the pertinent BIR systems by the Data Warehousing Systems and
Operations Division;
v. Undertakes quality verification of notices, various correspondence,
and ITS-CBR/IRIS-CRR to be issued to AABs and Revenue
Collection Officers (RCOs);
vi. Evaluates and acts on verified unpaid taxes due and other unpaid
tax liabilities (e.g., unpaid 2nd installment payment due,
unredeemed dishonored checks, unpaid tax due per return);
vii. Supervises all RCOs assigned in the different cities/ municipalities
under the district’s jurisdiction;
viii. Reconciles the RCO collections reflected in the electronic Revenue
Official Receipt (eROR)/Revenue Official Receipt (ROR) and
electronic Official Receipt (eOR)/Official Receipt (OR) issued and
the loose documentary stamps sold against the corresponding
deposits made to the Authorized Government Depository Bank
(AGDB);
ix. Undertakes all the necessary actions and immediate coordination
with the concerned revenue office and AAB/RCO to resolve the
detected discrepancies;
x. Monitors cash and forms accountabilities of RCOs and acts on any
discrepancies in RCOs’ reports;
xi. Ensures that all tax payments are encoded in Mobile Revenue
Collection Officer System (MRCOS);
xii. Issues discrepancy notice to RCOs for compliance to collection and
deposit requirements;
xiii. Evaluates response and recommends cases of RCOs with
discrepancies to RID or Legal Division for further investigation and
implementation of administrative sanctions, if necessary;
xiv. Analyzes and resolves suspended payment transactions based on
reports generated/submitted by Revenue Data Center (RDC);
xv. Assists the Compliance Section in searching and ascertaining the
whereabouts of stop-filers falling under the district’s jurisdiction,
conducts ocular inspection of taxpayer’s premises;
xvi. Prepares and maintains an up-to-date record of district collection
reports required by Regional and National Offices;
xvii. Prepares the monthly General Control Ledger and all its
attachments covering all self-assessed tax to be forwarded to the
Arrears Management Section for collection enforcement for
approval by the Head Office and for submission to the Accounts
Receivable Monitoring Division;
xviii. Processes requests for the issuance of Tax Debit Memo (for RR
Nos. 8A – Makati City and 8B – South NCR only);
xix. Assists the Compliance Section in monitoring government offices
and private entities relative to their compliance to the withholding
tax system;
xx. Maintains and updates list of Withholding Agents information;
xxi. Resolves non-TAMP invalid stop-filers/non-filers with payment
and/or filing issues referred/endorsed by Assessment/ Compliance
Section; and
xxii. Performs other functions as may be assigned.
C. Client Support Section
i. Delivers fast, efficient and courteous frontline service to the
taxpayers;
ii. Provides assistance to taxpayers in the district, such as answering
of queries and distribution of forms and tax information materials,
such as flyers, instruction booklets, etc.;
iii. Undertakes tax information dissemination and education campaign
in coordination with the Assessment Section and other concerned
BIR offices;
iv. Receives from taxpayer’s formal inquiries and all kinds of
applications/requests for registration, permit, certificate, information
updates and Tax Identification Number (TIN), together with the
required documents;
v. Processes applications for taxpayer record update, modification of
taxpayers’ information, authority to print receipts and invoices,
registration of books of accounts, application to use loose-leaf sales
receipts and invoices, acknowledgement certificates for use of
Computerized Accounting System and other registration
requirements prescribed under BIR revenue issuances;
vi. Processes applications for registration/cancellation of
registration/transfer of registration and generates corresponding
certificates/notices;
vii. Generates Tax Clearance Certificates for Business Closure upon
recommendation of the Collection and Assessment Sections;
viii. Distributes/issues to taxpayers all kinds of registration
certificates/authorities and permits including, but not limited to, TIN
Cards, Authority to Print and Certificate of Registration following the
guidelines under existing revenue issuances;
ix. Maintains a masterlist of all taxpayers within the RDO’s jurisdiction;
x. Establishes an updated taxpayers’ registration profile and
information;
xi. Coordinates and conducts briefings for new taxpayer registrants;
xii. Inquires on the existence of taxpayer information in the BIR
Registration Systems;
xiii. Provides internet facility and technical assistance to taxpayers who
are availing of BIR e-services and other computer-assisted
programs;
xiv. Acts on third party information gathered from government agencies,
Local Government Units (LGUs), etc., relative to registration;
xv. Receives and processes applications for taxpayer’s enrolment in
the BIR registration systems and other online systems defined
under existing revenue issuances;
xvi. Acts on stop-filer cases of non-TAMP taxpayers with registration
issues referred by the Compliance Section; and
xvii. Performs other functions as may be assigned.
D. Compliance Section
i. Ensures/monitors compliance with tax rules and regulations by all
taxpayers within the district office’s jurisdiction;
ii. Conducts Tax Compliance Verification Drive (TCVD) mapping
operations to determine taxpayer’s compliance to requirements of
internal revenue laws and regulations and identify potential
taxpayers within their jurisdiction which may require assistance
from other concerned sections/offices, if the need arises;
iii. Prepares required TCVD reports as prescribed under existing
issuances;
iv. Monitors compliance of taxpayers apprehended during the conduct
of TCVD and refer to the Revenue District Officer any
protest/appeal of the taxpayer in relation to the findings made;
v. Evaluates and analyses stop-filer/non-filer of non-TAMP taxpayers
received, identifies valid/invalid cases, endorses the same to the
concerned office and monitors its resolution. Invalid case with
payment and/or filing issues shall be endorsed to the Collection
Section while those due to registration errors shall be referred to
the Client Support Section for resolution;
vi. Monitors, evaluates and analyses inactive business taxpayers in
coordination with concerned Sections of the RDO/BIR offices for
accurate and timely classification/tagging of taxpayer’s registration
status in applicable BIR system database;
vii. Receives, validates, and monitors taxpayer’s submission and
compliance with tax information requirements including but not
limited to Summary Lists of Sales, Purchases and Importations
(SLS/P/I)/RELIEF data and Alpha Lists of Payees/Employees and
uploading thereof to the RDC;
viii. Monitors and reminds taxpayers within its jurisdiction of the
compliance and payment requirements of the Bureau which may
require direct communication to taxpayers;
ix. Prepares and submits regular status reports to concerned BIR
offices prescribed under existing revenue issuances regarding the
level of compliance by type of taxpayers on the filing of tax returns
and payment of the corresponding taxes, including the submission
of information returns; and
x. Performs other functions as may be assigned.