RMO No. 71-2010: Prescribes the guidelines and procedures for the conversion of Accounts Receivables/Delinquent Accounts into the Accounts Receivables Conversion System

Summary

RMO No. 71-2010 sets the guidelines and procedures for converting Accounts Receivables and Delinquent Accounts (ARs/DAs) into the Accounts Receivables Conversion System (ARCS).

Key points

1. What gets converted. All manually identified ARs/DAs are converted in the system, including unpaid 2nd installments of individual taxpayers’ Income Tax liabilities and dishonored checks. A Conversion Team of revenue officials named in the Order identifies, classifies, segregates, reconciles and monitors them, does the pre-conversion work and checks the accuracy of encoded data.
2. New ARs/DAs from August 1, 2010. ARs and DAs created from August 1, 2010 that are included in the Monthly Summary of Taxes Assessed (BIR Form No. 40.00) are encoded in ARCS by the Assessment Division, Large Taxpayers Service or Enforcement Service before dockets go to the collection offices. Unpaid second installments and dishonored checks identified from that date are encoded by the RDOs immediately.
3. Soft launch and rollout. The soft-launch conversion is piloted in the Collection Enforcement Division, LTDO-Makati and RDO No. 49, North Makati starting August 15, 2010, with total conversion within sixty (60) days. Other offices begin after the soft launch, starting August 31 but not later than October 16, 2010.

Who is affected

• Revenue District Offices
• Assessment Division, Large Taxpayers Service and Enforcement Service
• Offices handling ARs/DAs

Deadlines and effectivity

• Applies to ARs/DAs created from August 1, 2010
• Soft launch pilot starts: August 15, 2010, with total conversion within sixty (60) days
• Other offices: start August 31, not later than October 16, 2010

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