RMC No. 98-2010: Prescribes the guidelines and procedures for the treatment of unserved Letter Notices, Letter of Authorities and Tax Verification Notices in instances where the concerned taxpayers cannot be located

Summary

RMC No. 98-2010 prescribes guidelines and procedures for treating unserved Letter Notices (LNs), Letter of Authorities (LAs) and Tax Verification Notices (TVNs) when the taxpayers cannot be located.

Key points

1. Cannot Be Located status. After trying every available means to serve, the Revenue Officer must get certifications from any two (2) offices or organizations, such as the Baranggay Office, the business permit office, DTI, SEC, MERALCO or PLDT. If any two certify that the taxpayer is not in their records, the taxpayer gets the status Cannot Be Located (CBL).
2. Publication and response period. Names of CBL taxpayers are submitted quarterly to the AITEID for publication on the BIR Website and in at least two (2) newspapers of general circulation. Taxpayers have fifteen (15) calendar days from newspaper publication to contact the BIR.
3. Cancellation recommendation. Taxpayers who do not contact the BIR in that period are recommended for cancellation of registration and invoicing privileges (Authority to Print Invoices and Receipts). That list is also published on the BIR Website and in two (2) newspapers.
4. Assessment. For LNs, deficiency taxes are assessed based on discrepancies per LN. For LAs/TVNs, they are assessed on the best evidence obtainable. The resulting delinquent accounts are tagged as from unlocated taxpayers and posted on the BIR Website.
5. Effect on buyers. Purchases from an unlocated taxpayer whose registration is recommended for cancellation are not allowed as income tax deductions, and input VAT from such taxpayers is disallowed. Cancelling invoicing privileges does not stop the BIR from pursuing other legal remedies.

Who is affected

• Unlocated taxpayers
• Buyers from unlocated taxpayers with recommended cancellation

Deadlines and effectivity

• Response period: fifteen (15) calendar days from newspaper publication
• CBL names submitted: quarterly

Summary by Tax Resources PH. It is not a substitute for the full text of the issuance or professional advice.