RMO No. 18-2002: Prescribes the policies, guidelines and procedures in identifying and handling valid or actual stop-filer cases

Key points

1. Identifying stop-filers. Revenue District Offices (RDOs) identify actual stop-filers from the List of Stop-filers generated by the Revenue Data Center from the Returns Compliance System (computerized RDOs) or a manually prepared list (non-computerized RDOs), after analysis. Related system and database problems are resolved by the RDOs or the appropriate Large Taxpayers Service division.
2. Notices. Notices go to identified real stop-filers only, with high priority for top taxpayers and known persons with material taxable undertakings. If there is no response within five (5) days from receipt of the Preliminary Notice, a Final Notice gives ten (10) days to respond.
3. Ocular inspection. If there is still no response, the RDO conducts an ocular inspection or surveillance. A taxpayer verified to exist, with a first reminder letter, must file the unfiled returns with a warning that later violations face judicial action.
4. Taxpayer cannot be located or has stopped. If the taxpayer cannot be found, records of utility companies, the Securities and Exchange Commission or the Local Government Unit may be consulted for the address. A taxpayer that ceased operation permanently or dissolved by merger/consolidation is audited. A temporary stoppage still requires a return with the notation “no operation”.
5. Taxpayer claims to have filed. If the taxpayer presents its own copy of a filed return, the BIR verifies it in its records. The case officer/examiner certifies that the taxpayer’s copy is an exact replica of the BIR copy. A false certification is ground for administrative or criminal sanction to the BIR employee, if warranted.

Who is affected

• Stop-filers
• Revenue District Offices

Deadlines and effectivity

• Response to Preliminary Notice: within five (5) days from receipt
• Response to Final Notice: within ten (10) days