RMC No. 74-2024: Prescribing the mandatory requirements for claims for credit/refund of taxes erroneously or illegally received or collected or penalties imposed without authority pursuant to Setion 204(C), in relation to Section 229 of the National Internal Revenue Code of 1997, as amended, except those under the authority and jurisdiction of the Legal Group

Key points

1. Commissioner’s authority. The Commissioner may credit or refund taxes erroneously or illegally received and penalties imposed without authority. He may refund the value of internal revenue stamps returned in good condition by the purchaser, and may redeem or change unused stamps rendered unfit for use and refund their value upon proof of destruction.
2. Where to file. The taxpayer-claimant files the Application for Tax Credits/Refunds (BIR Form No. 1914) with the Revenue District Office, or the Large Taxpayers Audit Division or Large Taxpayers District Office under the LTS, whichever has jurisdiction.
3. Complete requirements and 2-year period. Only applications with all documents in the Checklist of Mandatory Requirements (Annex A.1), filed within 2 years after payment of the tax or penalty, are received and processed. Requirements vary by the nature of the tax and the circumstances. The claimant may add other documents and lists them in the checklist.
4. Attestation and books. The claimant attaches a notarized Taxpayer Attestation (Annex A.2) that the documents are complete and are the only ones to be presented, and claims are processed on those documents. Books of accounts and accounting records are presented on written request of the Revenue Officers. Failure to present relevant books may be a ground for denial.
5. Cooperation and DVC. The claimant must cooperate and keep documents available during verification so the 180-day processing is not delayed. Failure to cooperate may lead to full or partial denial. The claimant also secures a Delinquency Verification Certificate, valid for 6 months, from the Collection Division of the Revenue Region or the LT Collection Enforcement Division.

Who is affected

• Taxpayer-claimants of erroneously or illegally collected taxes or penalties imposed without authority

Deadlines and effectivity

• Filing within 2 years after payment of the tax or penalty
• 180-day processing
• Delinquency Verification Certificate valid for 6 months