RMO No. 13-2012: Prescribes the revised guidelines and procedures in handling Letter Notices generated through Third-Party Information data matching with tax returns

Key points

1. Coverage. The Order covers individual and corporate taxpayers issued LNs under the RELIEF, Bureau of Customs and Tax Reconciliation System data matching programs. LNs are generated based on parameters and a discrepancy threshold set by the CIR and deployed through the LN portal facility.
2. LNs and ongoing audits. The investigating office with jurisdiction handles the LN. If an eLA audit is ongoing, the Revenue Officer handling it also gets the LN, which is consolidated with the eLA and not closed, and the eLA may not be closed without resolving the LN.
3. Payment and abatement. A taxpayer who pays the basic deficiency tax(es) within 30 days from receipt of the LN gets abatement of surcharge, interest and compromise penalty, using BIR Form No. 0611-A. Payment after the 30 days is assessed with surcharge (if applicable), interest and compromise penalty, and an Agreement Form is executed in both cases.
4. Installment payment. Installment is allowed if total tax liabilities exceed P 500,000.00 for non-large taxpayers, or P 10 Million for large taxpayers, through a written Application for Installment Payment. On default, the remaining balance of basic tax plus increments becomes due and demandable immediately without prior notice.
5. If not settled. The taxpayer may face any or a combination of an eLA and/or Preliminary Assessment Notice/Final Assessment Notice under RR No. 12-99, a recommendation of suspension and temporary closure of business under RMO No. 3-2009 (Oplan Kandado) if the under-declaration is 30% or more, and a Subpoena Duces Tecum under RMO No. 88-2010.
6. Time to resolve. The assigned Revenue Officer must resolve the LN discrepancy within 30 days from receipt of original assignment or referral. After that period without resolution or action, the list of taxpayers and Revenue Officers goes to the Office of the CIR for referral to the Revalida Committee and Inspection Service.

Who is affected

• Individual and corporate taxpayers issued RELIEF-BOC-TRS Letter Notices
• Revenue Officers handling LNs

Deadlines and effectivity

• Pay basic deficiency tax within 30 days from receipt of the LN for abatement
• Revenue Officer resolves within 30 days from assignment or referral