RMO No. 46-2019: Further amends the procedures, policies and guidelines in the preparation of “Reports on Drastic Changes in Collection Performance” (BIR Form Nos. 1771A to 1771C) and revises the format thereof

Key points

1. BIR Form No. 1771A. The Summary Report of Collection Performance is submitted monthly by the RDO and the LT audit and operations divisions to the Regional Collection Division or the LT Performance Monitoring and Programs Division (LTPMPD).
2. BIR Form No. 1771B. It is renamed Report on Specific Reasons for Increase (Decrease) in Collection Performance by Taxpayer, by Industry and by Tax Type. The new format ranks taxpayers per tax type and industry by contribution to the change, shows revenue impact per taxpayer, and cites reasons supported by data or documents.
3. Drastic change defined. A drastic change is an increase or decrease in tax collections of at least fifteen percent (15%) compared to the same period of the previous year. It also covers actual collection exceeding or falling short of the assigned collection goal by 7.5%.
4. BIR Form No. 1771C and Narrative Report. Form 1771C is renamed Summary of Reasons for Drastic Changes in Collection and Impact on Collection Goal by Industry and Tax Type. It shows the net revenue impact of each reason and both the monthly and cumulative summary, and the RCD or LTPMPD prepares a Narrative Report explaining the changes and whether the collection goal was attained.
5. Reason codes. Reasons must be specific and use new codes: ADM (Administrative Measures), LEG (Legislative Measures), ECO (Economic Factors) and FOR (Fortuitous Events). If no drastic change occurred, the phrase No Drastic Change/s is entered in the Specific Reason column of Forms 1771B and 1771C.
6. Data script and due dates. The Systems Development Division develops a script for comparative data on the top 100 and bottom 100 taxpayers, which the RDC/NODC generates every 18th of the month. Forms 1771A and 1771B are due on the 23rd of the following month, the Narrative Report and Form 1771C on the 28th of the following month, and the CPMD consolidated report 35 days after the close of each month.

Who is affected

• Revenue District Offices
• Large Taxpayers divisions
• Regional Collection Divisions and LTPMPD
• Collection Performance Monitoring Division (CPMD)

Deadlines and effectivity

• Data farmed out every 18th of the month
• Forms 1771A and 1771B due on the 23rd of the following month
• Narrative Report and Form 1771C due on the 28th of the following month
• CPMD consolidated report due 35 days after the close of each month