RMO No. 41-2019: Prescribes the required documents in the processing of request for the lifting of Warrant of Garnishment, Notice of Tax Lien, Notice of Levy and Notice of Encumbrance

Key points

1. Payment and settlement grounds. Grounds include full payment of unpaid tax liabilities with delinquency penalties, and acceptance of full payment of a compromise settlement or penalty abatement offer. Each needs validated proof of payment or approved BIR Form 0605, in addition to the Handling Revenue Officer’s Memorandum Report.
2. Assessment and prescription grounds. Grounds include full or partial cancellation of the assessment on reinvestigation or reconsideration with the revised assessment fully paid and an ATCA issued, and prescription of the right to assess or collect under the Statute of Limitations, which needs the approved ATCA.
3. Security and court grounds. Grounds include an escrow account with a commercial bank in favor of the BIR of not less than the tax liability, or a surety bond for not less than double the outstanding liability. A final and executory court order for lifting also qualifies and needs a Certified True Copy of the Court Decision.
4. Property and account grounds. Grounds include full destruction of the property improvement by fortuitous events, supported by a Certificate of No Improvement from the City Assessor’s Office. They also include disposal of the seized property before the seizure, lien or NOE, and garnished accounts for salaries of government employees with a certification signed by the head of office.
5. Meritorious cases. Other meritorious cases qualify if the government’s interest is not jeopardized and the Commissioner gives prior approval.
6. Processing time. Requests with incomplete documents get an acknowledgement letter within ten (10) working days stating the lacking documents. Complete requests are processed and approved within ten (10) working days, and the original Notice of Lifting is served to third parties within five (5) working days from approval.

Who is affected

• Taxpayers requesting the lifting of a WG, NTL, NOL or NOE
• Third parties such as banks, assessors and the Register of Deeds

Deadlines and effectivity

• Acknowledgement letter for incomplete documents within ten (10) working days from receipt
• Processing and approval within ten (10) working days from receipt
• Service on third parties within five (5) working days from approval