RMO No. 05-2007: Prescribes the guidelines and procedures on the verification of 2005 tax returns by the Revenue District Offices

Key points

1. Taxpayers covered. TVNs cover verification of all internal revenue taxes for 2005 only. They are issued to taxpayers whose 2004 and 2005 Income Tax returns fall under these criteria: No Operation returns, Exempt returns, or returns reflecting Net Loss and/or No Taxable Income.
2. When TVNs may not be issued. If the criteria are not present in both the 2004 and 2005 returns, TVNs are not authorized under this Order. TVNs are issued only with the duplicate copies of the 2004 and 2005 Income Tax returns attached.
3. Deadlines. Verification of all cases is completed and reports submitted to the concerned Revenue District Officer not later than June 15, 2007. The reports go to the Assessment Division for review on or before June 29, 2007.
4. Monitoring reports. The RDO reports issuance, status, assessments and collections on TVN cases in three reports prescribed under RMO No. 11-2006 on the 2006 Audit Program of RDOs. These are the Monthly Report of Tax Verification Notices Issued (Annex C), the Monthly Summary of Assessment and Collection Activities (A.2 of Annex E), and the Monthly Report of Cases Verified, Processed and Closed (Annex F). The number of this RMO is indicated in those reports for TVNs issued under it.

Who is affected

• Taxpayers with No Operation, Exempt, or Net Loss/No Taxable Income returns for both 2004 and 2005
• Revenue District Offices

Deadlines and effectivity

• Verification reports to the RDO: not later than June 15, 2007
• Reports to the Assessment Division: on or before June 29, 2007