RMC No. 7-2023: Clarifies the Return Processing System (RPS) Assessment being issued by the BIR

Key points

1. Nature of RPS Assessment. It is a Collection Letter, part of the civil and administrative remedies of the BIR. It is not a tax assessment from an audit, but covers tax payables based on the taxpayer’s own declaration in filed returns.
2. Delinquent account. Once the declared tax payable is not paid by the due date, the BIR treats it as a delinquent account under RMO No. 11-2014. The BIR can enforce civil and criminal actions under Section 205 of the Tax Code.
3. No protest and no LOA. The RPS Assessment is not an Assessment Notice from an audit, which a taxpayer may contest or protest. No books of accounts are examined, so no Letter of Authority is required.

Who is affected

• Taxpayers who did not pay the tax payable declared in their returns