RMO No. 04-2016: Amends pertinent provisions of RMO No. 20-2007 on the simplified processing of applications for compromise settlement and abatement cases by concerned Regional Offices

Key points

1. Denials are final. Applications evaluated by the Regional Evaluation Board (REB), the LTS Sub-Technical Working Committee (TWC) or the LTS Evaluation Board (LTSEB) and recommended for denial are final, regardless of the Section 204 (A) threshold. The outstanding tax liabilities and/or penalties are collected immediately.
2. Notice of Denial. The Notice of Denial and the entire docket go to the Chief, Accounts Receivable Monitoring Division (ARMD) within ten (10) days after denial. The Chief, ARMD sends them to the Commissioner of Internal Revenue for signature within five (5) days, with no further review of the substance by the NO-TWG/TWC.
3. After approval of the Notice. The approved Notice and docket return to the Chief, ARMD for recording, then go to the originating revenue office to serve the taxpayer and enforce collection. The Chief, ARMD submits a monthly consolidated report on denied applications to the Assistant Commissioner, Collection Service within ten (10) days after each month ends.
4. Applications recommended for approval. The procedures under RR No. 30-2002, RR No. 13-2001 as amended by RR No. 4-2012, RMO No. 20-2007 and other issuances still apply up to approval at the National Office. A recommendation to approve made only to pass an issue upward, which the National Office bodies or the CIR find contrary, counts as a demerit for each recommending member, without prejudice to administrative liability.
5. Evaluation period and reports. The LTS Sub-TWC/EB and regional TWGs/REBs evaluate and release their decisions within fifteen (15) calendar days from receipt of an application. The reports in Annexes A to G under Operations Memorandum No. 13-01-003 continue to apply.

Who is affected

• Taxpayer-applicants for compromise settlement, abatement or cancellation under Revenue Regions and the Large Taxpayers Service
• Regional Evaluation Boards, LTS Sub-TWC/Evaluation Boards and the Accounts Receivable Monitoring Division

Deadlines and effectivity

• Notice of Denial to the Chief, ARMD: within ten (10) days after denial
• Chief, ARMD to the CIR: within five (5) days from receipt
• Board decisions: within fifteen (15) calendar days from receipt of the application
• Monthly report: within ten (10) days after the end of each month