RMO No. 41-2011: Consolidates and enhances the guidelines and procedures in identifying, handling, closing and monitoring of real/actual and invalid stop-filer cases

Key points

1. Creation of stop-filer cases. In computerized RDOs, cases are created automatically under the Returns Compliance System if no returns or payments are posted after a grace period. The grace period is 15 days for monthly returns, 30 days for quarterly returns and 60 days for annual returns. RDO Nos. 94, 95, 96 and 102 are non-computerized and handle stop-filers manually.
2. Reports and case handling. Revenue Data Centers generate the listed stop-filer reports monthly, and Revenue Officers-Assessment generally handle the cases. Taxpayers under the Taxpayer Account Management Program (TAMP) are presumed to have a clean list, so their listed cases are prima facie real stop-filer cases.
3. Notices and enforcement. Only validated real stop-filers get notices. If there is no response within five (5) days from the Initial Reminder Letter, a Final Reminder Letter follows with ten (10) days to respond, and then an ocular inspection. A first offense means filing the unfiled returns with a warning, while a habitual stop-filer is recommended for judicial action.
4. Cannot Be Located status. A taxpayer is tagged Cannot Be Located with certifications from any two of the Barangay Office, local business permit office, DTI, SEC or utility companies. The names are published quarterly in at least two newspapers, and the taxpayer has fifteen (15) calendar days to contact the Bureau. Registration or invoicing privileges of those who do not respond may be recommended for cancellation, but not for taxpayers with delinquent accounts or ongoing audit.
5. Closing cases and penalties. Penalties for non-filing of a no-payment return are imposed per return and per return period, and the corporate amount is P 1,000.00, or P 200.00 if the corporation ceased operation. To close a case, the taxpayer files the correct BIR tax form and does not use BIR Form No. 0605. Invalid cases needing a datafix are closed on the Case Officer’s recommendation, with a Datafix Request Form sent to the Revenue Data Center.

Who is affected

• Revenue District Offices
• Large Taxpayers Service offices
• Taxpayers tagged as stop-filers

Deadlines and effectivity

• Grace period: 15 days (monthly), 30 days (quarterly), 60 days (annual)
• Final Reminder Letter response: ten (10) days
• Cannot Be Located response: fifteen (15) calendar days after publication