BIR to serve notice to delinquent taxpayers

MANILA, Philippines - The Bureau of Internal Revenue (BIR) said yesterday it would issue more Letters of Notices (LNs) to delinquent taxpayers as part of efforts to boost collections.

BIR Commissioner Joel Tan-Torres issued Revenue Memorandum Order 7-2010 to enhance the handling of the so-called LNs for income tax, value-added tax (VAT), percentage tax and Withholding tax liabilities for taxable year 2008 of individual and corporate taxpayers registered under the agency’s Large Taxpayers Service.

As such, Tan-Torres has reconstituted the original Letter Notice Task Force (LNTF) that would directly report to him. The LNTF is composed of BIR Assessment Officers in the National, Regional and District Offices. Tan-Torres said the Task Force shall be in operation until Sept. 15, 2010, unless otherwise extended or earlier abolished.

Taxpayers are given ample time and opportunity to respond and reconcile their records with the BIR by follow-up letters within a prescribed number of days before they are issued a Letter of Authority (LA) and Notice of Informal Conference.

Those taxpayers who fail to settle their deficiencies are endorsed to the over-all Head of the LNTF. They are either issued a Preliminary Assessment Notice, a Final Assessment Notice (FAN), Subpoena Duces Tecum (SDT) or if their under declaration is 30 percent or more, they are recommended for imposition of the administrative sanction of suspension or temporary closure of business.   

Taxpayers may file letters of protests against the BIR’s action and request for reinvestigation or reconsideration, or sign an “Agreement Form” in case they agree with the findings covered by the LNs.

Abatement of interest and penalties and installment payment are considered under special conditions as indicated in the RMO, Tan-Torres also said.

The BIR, the government’s main revenue agency, is tasked to collect P830 billion this year, lower than the initial estimate of P875 billion. It has been looking at various measures to meet its target and help the government contain the budget deficit at P293 billion for the year.