RMO No. 13-2009: Prescribes an Office Audit Program in the Assessment Division of Revenue Regional Offices

Summary

RMO No. 13-2009 prescribes an Office Audit Program in the Assessment Division of Revenue Regional Offices.

Key points

1. Returns covered. The program covers 2007 tax returns not selected for a Letter of Authority (LA) or Tax Verification Notice (TVN) under RMO No. 20-2008, as amended by RMO No. 21-2008. It also covers taxable year 2008 returns not covered by the 2009 Annual Audit Program for RDOs.
2. Exclusions. Returns picked by Revenue District Officers under the Annual Audit Program, taxpayers under the Taxpayer Account Management Program (TAMP), and taxpayers whose principal place of business is in the island districts are not referred for Office Audit.
3. Selection and Letters of Authority. The Regional Director selects taxpayers, consulting the Chief of the Assessment Division and the Revenue District Officers. A list goes to the DCIR-OG and the ACIR, Assessment Service, within three (3) days from issuing the LAs. Office audit cases use Office Audit-Letters of Authority (OA-LAs), one for each taxable year covering all internal revenue tax liabilities.
4. Non-response. If the taxpayer does not respond to the OA-LA or it is returned to sender, the Revenue Officer reports in writing to the Chief of the Assessment Division. The report is forwarded to the Special Investigation Division in the Regional Office.
5. Reports and revalidation. The report of investigation is due to the Review and Evaluation Section within sixty (60) days from issuing the OA-LA. Only one revalidation of the LA is allowed, requested through a progress report approved by the Chief of the Assessment Division.
6. Review deadlines. Reports on closed cases where deficiency taxes were paid at the Assessment Division level go to the Regional Director within ten (10) days from payment. Reports on cases for assessment go at least six (6) months before the prescription date.

Who is affected

• Assessment Divisions of Revenue Regional Offices
• Taxpayers with 2007 and 2008 returns selected for office audit

Deadlines and effectivity

• List of selected taxpayers: within 3 days from issuing the LAs
• Report of investigation: within 60 days from issuing the OA-LA
• Closed cases with paid deficiency taxes: within 10 days from payment
• Assessment cases: at least 6 months before the prescription date

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