RMO No. 25-2001: Clarifies the procedures on the receipt, processing, control, transmittal and collection of returned/dishonored checks received through Accredited Agent Banks

Summary

RMO No. 25-2001 clarifies the procedures for receiving, processing, controlling, transmitting and collecting returned or dishonored checks received through Accredited Agent Banks (AABs).

Key points

1. Where dishonored checks go. Dishonored checks received by AABs, under a computerized or non-computerized Revenue District Office (RDO), go to the RDO having jurisdiction over the receiving AAB branch and to the Large Taxpayers Service/Large Taxpayer District Office, as the case may be.
2. Penalties on AABs. Penalties are imposed on AABs for receiving checks dishonored as accommodation checks, stale checks, post-dated checks, unsigned checks or out-of-town checks.
3. Account Closed. Checks dishonored for Account Closed go to the Legal Division of the Regional Office or the Legal Service of the National Office. A court case is filed against the taxpayer for violation of the Anti-Bouncing Check Law.
4. No compromise. Dishonored check cases cannot be the subject of any compromise settlement.

Who is affected

• Accredited Agent Banks
• Revenue District Offices
• Taxpayers who paid with dishonored checks

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