Rmo 28-07

September 17, 2007
REVENUE MEMORANDUM ORDER NO. 28-07
SUBJECT : Prescribing Guidelines and Procedures in the Transmittal and Processing of the Annual
Information Return on Income Taxes Withheld on Compensation and Final Withholding
Taxes (BIR Form No. 1604-CF), Annual Information Return of Creditable Taxes Withheld —
Expanded/Income Payments Exempt from Withholding Tax (BIR Form No. 1604-E) and
Monthly/Quarterly/Transactional Remittance Returns (BIR Forms Nos. 1601C, 1601E,
1601F, 1600, 1606, 1602, 1603) with the Monthly Alphalist of Payees (MAP) and Returns
Required to have Summary Alphalist of Withholding Agents of Income Payments
Subjected to Tax Withheld at Source (SAWT) (1701, 1702, 2550Q, 2551M, 2551Q, etc.)
under Revenue Regulations No. 2-2006 and Procedures in the Extraction, Matching,
Analysis, Dissemination, Utilization of Payor/Payees Data Including Monitoring the Extent
of Compliance of Withholding Agents and Income Recipients Subject to Withholding Tax
through the Tax Reconciliation System
TO All Internal Revenue Officers and Others Concerned

:
I. Background and Coverage
The Tax Reconciliation System (TRS) using the tool of a Centralized Data Warehouse (DW) is geared
towards enhancing revenue collection by computerized matching of data available under the Bureau's
Integrated Tax System (ITS) (i.e., tax returns of income recipients such as BIR Form Nos. 1701, 1702, 2550Q,
2551M, 2551Q, etc.) with data gathered from withholding agents such as the Alphalist of Payees/Income
Recipient/Employees attached to various withholding tax forms like the Annual Information Return on Income
Taxes Withheld on Compensation and Final Withholding Taxes (BIR Form No. 1604-CF); Annual Information
Return of Creditable Taxes Withheld — Expanded/Income Payments Exempt from Withholding Tax (BIR Form
No. 1604-E) and Monthly/Quarterly/Transactional Remittance Returns of Withholding Taxes (BIR Forms Nos.
1601C, 1601E, 1601F, 1600, 1602,1603, 1606).
Through the consolidation and cross-referencing of data from withholding agents (WAs) and
declaration of income recipients, discrepancy reports can be generated to uncover violations on tax rules and
regulations such as under declaration of income, non-declaration of income, under remittance and/or non-
remittance of taxes withheld, over withholding, under withholding, over declaration of credits to name a few.
Timely recognition and accurate reporting of unregistered taxpayers and non-filers will also be possible.
This Order shall cover all annual information returns led in soft copy and/or hard copy which are
encoded/uploaded for calendar year 2005 and subsequent years. It likewise covers all withholding tax returns
including those with attached Monthly Alphalist of Payees (MAP) and tax returns of income recipient with
attached electronic or hard copy of SAWT beginning January 2006. The returns led by Large Taxpayers shall
be processed by the Large Taxpayers Service (LTS) and all other returns led by non-large taxpayers shall be
processed by the Withholding Tax Division (WTD), during the pilot stage and until system is fully operational,
and thereafter, shall be handled by the concerned Revenue District O ces (RDOs). The sales/revenue/income
gure of a taxpayer arrived at under the TRS matching system or procedure shall be compared with the
sales/revenue/income arrived at under the RELIEF System and the resulting higher gure between the two
gures generated separately under the two different matching systems shall be the presumed correct
sales/revenue/income of the payee/income recipient.
II. Objectives
A. Prescribe procedures for a more effective way of extraction, analysis, dissemination, utilization
of payor/payees data, processing and computer matching of data, audit and monitoring of
withholding tax returns filed including EFPS and/or encoded/uploaded returns.
B. Establish adequate controls to ensure security/integrity and con dentiality of TRS data
maintained in the DW, consistent with relevant statutes and policies concerning Unlawful
Disclosure. ASaTCE
C. Enhance voluntary compliance of WAs.

D. Facilitate the processing of the aforesaid returns thru the use of developed online system.
E. Delineate the duties and responsibilities of o ces responsible for the implementation of TRS
including all activities associated with requests for access and dissemination of TRS data to
the concerned offices.
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F. Prescribe procedures in the resolution of matched error or discrepancies through examination
of taxpayer's records, assessment and collection of deficiency taxes.
G. Prescribe procedures in the resolution of Tax Reconciliation System — Letter Notice (TRS-LN)
discrepancies.
H. Define the duties and responsibilities of the concerned revenue officials and officers on the TRS-
LN assigned to them.
I. Prescribe standard report format to be used by all concerned o ces in the implementation of
this Order.
III. Policies and Guidelines
A. All computerized RDOs in Metro Manila shall no longer transmit the original hard copy of the 2006
and subsequent years Annual Information Return on Income Taxes Withheld on Compensation and Final
Withholding Taxes (BIR Form No. 1604-CF), Annual Information Return of Creditable Taxes Withheld —
Expanded/Income Payments Exempt from Withholding Tax (BIR Form No. 1604-E) and Monthly Withholding
of VAT and Percentage Taxes (BIR Form No. 1600) to the Withholding Tax Division as prescribed under RMO
80-98. They shall process/encode/upload withholding tax returns and its attachments following existing
procedures under RMO 5-2001 and RR 2-2006.
B. All non-computerized RDOs shall process/encode/upload withholding tax returns into the ITS
following existing procedures (i.e. Payment Data Entry System (PDES)). RDOs should encourage their
taxpayers to submit withholding tax returns and annual information returns thru the e-submission facility that
allows electronic submission of BIR Form Nos. 1600, 1601-C, 1601-E, 1601-F, 1602, 1603, 1604-CF, 1604-E,
1606 and the attached alphalists of employees/payees where data/ les generated passes the validation
procedures of the Bureau.
All RDOs are required to encode/upload returns including attached alphalist into the ITS within thirty
(30) days for monthly/quarterly/transactional tax returns and sixty (60) days for annual returns from date of
receipt of returns. Returns required with SAWT/MAP shall likewise be uploaded. DaCEIc
C. Pre-audit of electronically available returns shall be done thru TRS.

For Withholding Tax Agents under the jurisdiction of the LTS.
The procedures in the resolution of withholding tax discrepancies covered by the TRS-LN shall be
undertaken by the LTS-LTAID1/LTAIDII/LTDO.
For Withholding Tax Agents under the jurisdiction of the Regional Offices.
During the pilot stage, the resolution of the withholding tax discrepancies covered by the TRS-LN shall
be undertaken by the WTD.
The PAN/FAN shall be signed by the DCIR-OG, after evaluation and review by the ACIR-CS.
After the pilot stage, processing and resolution of the TRS-LN will eventually be done in the RDO level
following the existing procedures in the processing of TRS-LN.
The LTDO/ACIR-CS or the concerned RDO (after the pilot stage) shall recommend the conversion of
TRS-LNs to Letters of Authority (LAs) for the assessment of de ciency taxes, if any, if the conditions stated
under subsections Z and AA exist. However, the LA to be issued shall only be an issue-based LA covering the
issues discovered in the generation of the LN.
"Pilot Stage" shall mean the pilot run of matched TRS data resulting to the issuance of TRS-LN.
Thereafter, any succeeding TRS-LN will be done in the RDO level unless, the CIR, in the interest of the Bureau
allows the WTD or another national office task force to continue their function as stated in this RMO.
TRS-LN shall be delivered to the taxpayer through registered mail and/or personal delivery.
D. Information to be drawn from the TRS shall be classi ed into two (2) major groups, namely:
"Processed" and "Preprocessed" TRS data.
"Processed" TRS data refers to data matched by the system following de ned threshold by the
Commissioner.
"Preprocessed" TRS data refers to historical data on withholding tax details that are enhanced with
registration information matching. The data may or may not have been consolidated yet.
TRS data consist of information submitted by the taxpayer thru the following returns:
• Annual Information of Income Tax Withheld on Compensation and Final Withholding Taxes (BIR Form
No. 1604-CF)
• Annual Information of Creditable Income Taxes Withheld (Expanded)/Income Payments Exempt from
Withholding Taxes (BIR Form No. 1604-E)

• Withholding Tax Remittance Returns
• Returns with Monthly Alphalist of Payees (MAP)
• Returns with Summary Alphalist of Withholding Agents (SAWT) HCETDS
E. The concerned o ces under the Information Systems Group (ISG) shall be responsible for
developing the TRS infrastructure and establishing a centralized TRS database that serves as a
comprehensive integrated resource network that will allow the automatic matching of processed TRS data.
F. The Systems Operations Division (SOD) of the Information Systems Operations Service (ISOS) shall
be the office responsible for generating the following:
• List of Taxpayers with discrepancies within the threshold amount set by the management for the
generation of TRS-LN.
• System-generated TRS-LNs plus Details of Withholding Agents/Payors and Payees/Income Recipient
Report (DWAPR).
DWAPR refers to taxpayer's income payments/purchases and withholding taxes as reported in the
Alphalists submitted by withholding agents and the payees/income recipients reported
sales/revenues/receipts in the Income Tax Return, VAT Return, and Percentage Tax Return, including the
SAWT, whichever is applicable. AIHECa
G. Taxpayers in the discrepancy lists to be generated by the SOD shall be sorted by Revenue Region
(RR)/Revenue District O ce (RDO)/Large Taxpayers District O ce (LTDO) and arranged in alphabetical order
prior to the assignment of a control number for identi cation and easy monitoring as well as by the amount of
discrepancy for purposes of priority action to be undertaken.
H. The LTS for large taxpayers and during the pilot stage, the WTD, under the CS, for all other taxpayers,
in coordination with the concerned o ces of ISG, shall be responsible for evaluating, processing, and
monitoring the TRS-LN together with the DWAPR and shall recommend other ADHOC reports, as may be
needed by the management.
I. Any collection under this undertaking shall be for the account of the RDO where the subject taxpayer
is registered. Hence, WTD during the pilot stage shall not be subject to attrition.
J. The WTD, through the CS shall recommend to the DCIR-OG and CIR a set of TRS threshold of
discrepancy.
K. The concerned o ces under the ISG shall be responsible for developing a computerized tracking
system to monitor collection data arising from TRS-LNs issued.
L. The monitoring of TRS-LNs and collection therefrom shall be the responsibility of the ACIR- CS/ACIR-
LTS but the monitoring of the whole process shall be the responsibility of the Office of DCIR-OG and CIR.
M. For the effective implementation of the TRS, the WTD, in consultation with the concerned o ces
under the ISG and OG, shall conduct, on a continuing basis, quality review of the system and recommend
enhancements, whenever necessary.
N. The concerned o ces under the ISG shall ensure timely generation of the discrepancy reports which,
per se, depends on the timeliness of the DW update.
O. In as much as TRS-LNs are considered as LA for purposes of amending the returns, returns covering
the periods and/or transactions referred to in the TRS-LNs can no longer be amended. The returns referred to
herein shall include all returns and schedules required to be submitted. Moreover, if there are no returns
initially led or schedules attached thereto, the taxpayer may no longer le a return by way of a "late
compliance" considering that the Commissioner has made a computation of the tax base and tax due in his
behalf.
P. The Monthly Status Report on TRS- LNs issued, in the format prescribed herein shall be submitted by
the investigating offices to WTD for consolidation and for the ACIR-CS/DCIR-OG/CIR to monitor.
Q. The RD/ACIR or HREA-LTS, as the case may be, shall approve all requests for access to
"Preprocessed" TRS data which shall be covered by a Request Form (RF). Access to "Preprocessed" TRS Data
shall be limited to taxpayers for whom Letters of Authority (LAs) have been issued. For National Investigation
Division (NID) cases, access shall be granted only where the request has been duly noted by the Deputy
Commissioner — Legal and Inspection Group (DCIR-LIG).
R. The WTD shall act on all approved request for access to "Preprocessed" TRS data by the concerned
investigating offices. ISAcHD
S. The RDs, ACIR-LTS (in the absence of ACIR, concerned HREA of LTS) and ACIR-CS shall be
responsible for monitoring and evaluating the utilization by the requesting o ce(s) of the "Preprocessed" TRS
data. A Quarterly Status Report on "Preprocessed" TRS Data Utilization, in a format prescribed herein, shall be
submitted by the concerned LTS/LTDO/other investigating o ces, thru RDs/ACIR or HREA-LTS/ACIR-CS, to
WTD.
T. The WTD shall conduct, on a periodic basis, a reconciliation of all preprocessed TRS data farmed out
to the requesting o ce(s) by comparing/matching the TRS data disseminated to the investigating o ce(s)
with the Quarterly Status Report on "Preprocessed" TRS Data Utilization submitted by the same.
U. All TRS data disseminated to any Revenue Officer (RO) shall be utilized in the conduct of investigation
( eld audit or table audit) and the extent of utilization of said data shall be fully disclosed in the report of
investigation/reinvestigation. The heads of the concerned WTD/LTDO/investigating o ce shall be
responsible for all TRS data furnished to the revenue o cer(s) under their jurisdiction. For this purpose, the
Assessment Division (AD) in the Regional O ces or any other o ces authorized to review reports of
investigation shall be furnished with copies of the TRS data disseminated to ensure proper utilization of the
same.
V. Any record extracted from the DW shall be considered strictly con dential and shall be used
exclusively for internal revenue tax purposes. All employees who in any way have access to the system should
be informed of the legal provisions governing unlawful disclosure of information. CSDcTA
W. In the pilot phase, taxpayers to whom TRS-LNs were issued shall, aside from the payment of the
required de ciency income taxes, pay the VAT and percentage taxes resulting from the ndings of
discrepancy in the TRS-LN.
X. The de ciency income and value added taxes/percentage taxes shall be computed using the
formulas prescribed herein (Annex "P") and the corresponding payment shall be made using BIR Form No.
0605.
Y. The herein prescribed formulas for the computation of the de ciency taxes shall apply only to TRS-
LNs issued to taxpayers that are not the subject of an investigation pursuant to an LA, since under the "no-
contact-audit approach", the concerned RO has no opportunity to examine the records of the taxpayer for
purposes of determining its true tax liabilities.
Z. The settlement and payment of the de ciency taxes under the TRS-LN or issue-based LA shall not
preclude the Bureau from issuing a LA covering the comprehensive audit of a taxpayer's tax liability, if
warranted. However, any payment of de ciency taxes pursuant to TRS-LN shall be credited against any
assessment that may be made by the appropriate BIR O ce pursuant to a notice of investigation or LA
provided the discrepancies disclosed by said audit are of the same nature as the discrepancies re ected in
the TRS-LN for the same taxable year.
AA. If the taxpayer received the TRS-LN but fails to respond within fteen (15) days from receipt of the
TRS-LN, the LTDO/investigating o ce shall issue a follow-up letter (Annex "R"). If despite the follow-up letter
received by the TP, still no response within fteen (15) days is received from the taxpayer, prepare issue-
based Letter of Authority, "Notice for Informal Conference" and if no response within fteen (15) days from
receipt, transmit the docket to the Assessment Division or equivalent o ce for PAN/FAN preparation. WTD
shall prepare LA/PAN/FAN during the pilot stage. Forward to the DCIR-OG, through the Collection Service, the
docket attaching thereto the duly received copy of TRS-LN, DWARP, follow-up letter, duly issued issue-based
LA, for issuance of PAN and FAN, as the case may be, following the guidelines and procedures provided by RR
No. 12-99. However, for TRS-LN covering taxable 2005, no follow up letter is necessary. After the lapse of 15
days from delivery of the TRS-LN and no response is received, an issue-based LA shall be issued. (For pilot
stage where cases are handled by the WITHHOLDING TAX DIVISION, the LA shall be signed by the DCIR-OG.)
Thereafter, the Notice for Informal Conference shall be immediately issued/released. If still no response
within fteen (15) days from service of the Notice for Informal Conference is received, PAN and later FAN
shall be issued by the DCIR-OG. IaDSEA
BB. In the event a taxpayer who has been issued a TRS-LN refutes the discrepancy shown thereon, the
RO concerned shall, upon receipt of the protest letter of the taxpayer, evaluate the protest and require the
latter to execute a Sworn Statement attesting to the alleged inaccuracies or errors in the data submitted by
payor/payee or third party source. The payor/payee or third party source shall also be required to execute a
Sworn Statement attesting to the data provided.
In case the above discrepancies remained unresolved at the end of the thirty (30) day period, the RO
assigned to handle the TRS-LN shall recommend the issuance of issue-based LA to replace the TRS-LN. The
head of the concerned investigating o ce shall submit a summary list of TRS-LNs for conversion to LAs
(using the herein prescribed format in Annex "O2" hereof) to the DCIR-OG during the pilot stage/ACIR-LTS/RD
for the preparation of the corresponding LAs with the notation "This LA cancels TRS-LN No. _______." The
issue-based LA shall be reported within 30 days, for regional cases and 60 days, for LTS cases from issuance
thereof.
CC. The audit to be conducted pursuant to an LA should be an issue-based audit focusing on the
information provided by the payor/payee and the explanations furnished by the taxpayer. The audit shall be
undertaken following the audit procedures and techniques under Revenue Audit Memorandum Order (RAMO)
Nos. 1-2000, 2-95, 1-91 and 1-90. The RO concerned shall also comply with the reporting requirements
prescribed under RMO No. 53-98, whichever is applicable.
In case a TRS-LN is issued to a taxpayer who is already the subject of an investigation pursuant to an LA
for the period covered by the said TRS-LN, the TRS-LN shall not be considered cancelled but instead,
processing should be consolidated with the investigation being conducted pursuant to the LA and shall form
part of the audit docket. The TRS discrepancy re ected in the said TRS-LN should be properly utilized by
including the extent of its utilization in the report of investigation by the concerned RO. The audit docket with
the consolidation of the TRS-LN shall be subject to approval by the DCIR-OG, for regional cases, and
Commissioner, for LTS cases. Dockets of TRS-LN where payment is in accordance with the ndings in the
matching process of the computer system shall be approved by the regional director for regional cases,
(DCIR-OG for pilot stage) concerned HREA/ACIR-LTS for LTS cases. In case there is deviation from the
resulting gure of the computer matching process, nal approval shall be done by the DCIR-OG, for regional
cases, and CIR for LTS cases after, of course, proper evaluation and recommendation by the
concerned/appropriate investigating office, thru channels.
DD. For effective monitoring and to ensure proper utilization of the TRS data relative to TRS-LNs issued
to taxpayers who are subjects of investigation pursuant to LAs for the same period (whether the LAs were
issued before or subsequent to TRS-LN issuance), the concerned investigating o ces shall prepare a Monthly
Collection Report on LAs with TRS-LN Discrepancy using the format prescribed in Annex "O3" hereof, for
submission to the ACIR-CS/ACIR or HREA-LTS/RD, copy furnished the WTD and DCIR-OG on or before the
10th day following the close of each month.
EE. The Preliminary Assessment Notice (PAN)/Final Assessment Notice (FAN) shall be issued by the
Commissioner, after evaluation by the Assistant Commissioner (ACIR)/Head Revenue Executive Assistant
(HREA)-LTS, for LTS cases, or Deputy Commissioner-Operations Group (DCIR-OG), after evaluation by the
Assistant Commissioner (ACIR)-Collection Service (CS), for non-LTS cases. However, if the ndings re ected
in the TRS-LN is not changed in the PAN/FAN, same shall be signed by the Regional Director/ACIR or HREA-
LTS.
FF. After the pilot stage, processing of TRS-LN shall be totally devolved to the investigating o ces
(Regional O ce/LTS) hence, issuance of issue-based LA/Informal Conference/PAN/FAN up to the
termination of the case which are being handled by the WTD-CS and DCIR-OG or CIR shall be done by the
concerned investigating, reviewing and approving o ces in the Regional O ces or LTS. However, if the
findings reflected in the TRS-LN is changed by the Region/LTS, docket shall be approved by DCIR-OG/CIR.
IV. Procedures
A. Systems Operations Division (SOD)-ISOS shall:
1. Upon instruction from DCIR-OG, extract records from the DW consisting of TRS Data culled from the
returns led by the taxpayer and its/his withholding agents, within the prescribed discrepancy
threshold determined based on the following reconciliation:
a. Agent-Taxpayer Reconciliation
Alphalist of Payees-gross income paid to income recipient and withholding taxes reported by
the WA vs. Gross Sales and withholding taxes declared/claimed as tax credits by
taxpayer/recipient in ITS.
b. Withholding Agent Reconciliation
WA's annual information return versus monthly/quarterly remittance returns. Systems
identi cation and computation of late ling of remittance returns and late submission of
information returns with attachments.
c. Line by Line Reconciliation
WA's information on gross income/payment declaration versus amount withheld using the
correct withholding tax rates.
2. Generate list of taxpayers with discrepancies within the prescribed threshold.
3. Sort the discrepancy list by RR/RDO or LTS/LTDO and arrange in alphabetical order. It shall also be
sorted by the amount of discrepancy for priority action to be undertaken. EaIcAS
4. Inform in writing or via e-mail, the ACIR-CS/ACIR-LTS or concerned HREA-LTS/RD on the result of
action undertaken based on the issues raised upon random test validation of discrepancies by
the WTD.
5. Identify the taxpayers in the list by means of a system-assigned control number. The assignment of
control number must be done in the following manner:
RDO Code — rst three (3) digits Tax type — next two alphanumeric code (for tax type) WE for Expanded
Withholding Taxes WC for Withholding Tax on Compensation WF for Final Withholding Tax WV for
Withholding on VAT WP for Withholding on Percentage Tax TP Class — next one (1) digit N for non-individual
I for individual Year — next two (2) digits Quarter — next two (2) digits Serial No. — last five (5) digits

The serial number shall start from 00001 for each o ce and shall be reset to start again from 00001
at the beginning of each calendar year.
Hence, the control number for the rst taxpayer (non-individual) in the discrepancy list covering
Expanded Withholding Tax for 2005 in RDO Pasig should read as follows:
043-WE-N-05-00-00001
6. Generate annually or upon request the TRS-LN (Annex "A") together with DWAPR (Annexes "B", "B1",
"B2"), corresponding to taxpayers identified in the discrepancy list, to be distributed as follows:
Original — ACIR-LTS/ACIR-CS/RD Duplicate — WTD Triplicate — File Copy
Make available in soft copy the withholding tax returns with attached alphalists in excel format
downloaded to the WTD.
7. Transmit in writing and e-mail the following documents to the WTD within one (1) day from
generation thereof:
7.1. In hard copies
a. List of taxpayers issued TRS-LNs sorted by RR/RDO/LTS/LTDO/investigating offices
b. System-generated TRS-LNs (duplicate copy)
7.2. Thru e-mail
a. Details of Withholding Agents/Payor & Payees/Income Recipient Report (DWAPR)
8. Provide OG a List of Taxpayers issued TRS-LNs sorted by RR/RDO/LTS/LTDO/investigating o ces
within one (1) day from printing thereof.
9. Generate reminder letters to taxpayers with request for installment payments one week before due
dates of the installments.
10. Generate follow-up letters to taxpayers with overdue installments one week after the due dates.
11. Generate "Summary Report of Overdue Installments" every first working day of the week.
12. Generate ADHOC reports which shall be required by MANCOM from time to time.
B. Withholding Tax Division shall:
1. Submit through the CS the threshold summary to the DCIR-OG for the parameters in the issuance of
TRS-LNs each year. The threshold may vary depending on the direction of top management.
2. Acknowledge, in writing or via e-mail, receipt from the SOD of information on the generation of the
new batch of TRS-LN packages.
3. Explore the possibilities of enhancing and improving the system for effective and e cient matching
of data and processes. Conduct on a continuing basis, in coordination with the concerned o ces
under the ISG and OG, review of the TRS and enhancements thereof whenever necessary.
4. Receive from SOD the following:
4.1. In hard copies
a. List of taxpayers issued LNs sorted by RR/RDO/LTS/LTDO/investigating o ces with
DWARP
b. System-generated LNs (duplicate copy)
4.2. Thru e-mail
a. Details of Withholding Agents/Payors and Payees/Income Recipient Report (DWAPR)
5. Check and validate in the ITS if generated TRS discrepancy with DWAPR is valid for issuance of TRS-
LN or explain in writing the details on the result of validation. SDEITC
6. Maintain master le of all TRS-LNs generated, received and transmitted to regions/LTS/investigating

offices.
7. Receive from ACIR-LTS/ACIR-CS/RD the Monthly Consolidated Report on TRS-LNs issued within ten
(10) days from the close of each month.
8. Maintain a permanent record of all taxpayers issued TRS-LNs showing the following information:
• Control Number
• Name of Taxpayer
• TIN of Taxpayer
• Period Covered
• Amount of Sales per Return

• Amount of Gross Profit
• Amount of Tax Due
• Amount of Tax Withheld
• Amount of Discrepancy
• % Discrepancy
• Amount of Tax Due per Tax Type
• Amount of Discrepancy
• Line by line reconciliation discrepancy
• Date Generated
• Date Transmitted to WTD/LTS/Investigating office
• Date Received by WTD/LTS/Investigating office
• RR/LTS/WTD Code
• RDO Code
• Date Served
• Date of Payment
• Amount of Payment
• Status (refer to RDO/LTDO/investigating office Monthly Status Report on LN Issued)
• Date of issuance of PAN
• Date of issuance of FAN
• Date of Protest, if protested by taxpayer
• Date of finality of assessment
9. Monitor collection arising from TRS-LNs issued using the computerized tracking system to be
developed for the purpose and reconcile it with the monthly update by the LTS/LTDO/RD/RDO.
10. Receive from the ACIR-LTS/LTDO/RD/RDO/investigating o ces the duly approved Data Request
Form (RF) for "Preprocessed" TRS data.
11. Access the DW containing historical data on TRS details enhanced with registration information
matching.
12. Provide details of "Preprocessed TRS Data" to the requesting o ces thru e-mail or registered mail
whenever e-mail facility is not available.
13. Receive Consolidated Quarterly Status Report on "Preprocessed" TRS Data Utilization from the
RD/LTS/LTDO/ACIR-ES/Investigating office on or before the 20th day following the close of each
quarter.
14. Submit to the ACIR, CS on or before the 20th day of the second month following the close of each
quarter the following:
a. Consolidated Quarterly Status Report on TRS-LNs Issued
b. Consolidated Quarterly Status Report on "Preprocessed" TRS Data Utilization
15. Submit to DCIR-OG, thru ACIR-CS, a copy of Consolidated Quarterly Status Report on TRS-LNs
issued on or before the 20th day of the second month following the close of the quarter.
16. Receive from the LTS/LTDO/RD/RDO/investigating o ces the Monthly Collection Report on LAs
with TRS-LN Discrepancy (Annex "O3") on or before the 10th day following the close of each
month for monitoring purposes.
17. Receive from the concerned reviewing o ce (Assessment Division/LTS) TRS-LNs for cancellation if
the TRS-LN discrepancy was already considered in the audit case of taxpayers pursuant to LA
issued for the same taxable year where all the ndings re ected in the TRS-LN are part of the
findings reported in the LA docket.
18. Prepare a consolidated list of TRS-LNs converted to issue-based LAs by WTD together with the
reports received from LTS/LTDO/RD/RDO/investigating o ces within twenty (20) days after the
lapse of the 15-day period from service of TRS-LN and 15-day period from service of follow-up
letter where no response was received from taxpayer or the 30 day period from TRS-LN issuance
for TRS-LNs served with protests/objections, as the case may be. The issue-based LA shall be
reported or docketed within 30 days, for regional cases or 60 days, for LTS cases, from issuance
of the issue-based LA.
19. Analyze the statistical report on TRS-LNs issued per LTS/LTDO/RD/RDO/investigating o ces and
review the online consolidated TRS-LN status and collection report and print the same as needed
in order to provide progress reports on TRS-LN status and collection as may be required by
MANCOM.
20. During the pilot stage, WTD shall perform the functions stated under sub-Item EE hereof. The ROs
under the WTD shall personally serve/registered mail the TRS-LNs, together with the DWAPR, to
the taxpayer within five (5) days from the receipt thereof.
21. Provide MANCOM, thru the DCIR-OG and ACIR-CS with consolidated report on TRS-LN status and
collection on or before the end of the fourth month after the close of the year and an annual
status report on the TRS program/activities undertaken, as may be required. However, ad hoc
reports may be provided to MANCOM or the CIR as the need arises.
C. Collection Service shall:
1. Evaluate the PAN and the FAN prepared by the WTD for approval of the DCIR-OG.
2. Monitor status of TRS-LNs/PAN/FAN issued and analyze the following reports submitted by WTD:
a. Consolidated Quarterly Status Report on "Preprocessed" TRS Data Utilization
b. Consolidated Quarterly Status Report on TRS-LNs Issued
c. Withholding Tax Monthly Accomplishment Report
3. Provide directions on the immediate resolution of TRS cases.
4. Submit to OG a copy of Consolidated Quarterly Status report on TRS-LNs issued on or before the
20th day of the second month following the close of the quarter.
5. Review/Update, from time to time, the business and functional requirements of the TRS Data
Warehouse facility to ensure timeliness, security, integrity and con dentiality of TRS data or
records.
6. Sign any request by WTD for consultation with TPI source for current address of the taxpayer
covered by the TRS-LN.
D. Large Taxpayers Service/RD shall:
1. View the TRS-LN packages deployed, check the completeness by comparing the List of TRS-LNs
sorted by o ce against the DWAPR and acknowledge in writing or via e-mail, receipt from the
WTD of TRS-LN packages.
2. Direct the concerned investigating o ces to download and print the TRS-LN packages for service of
the TRS-LNs, together with the DWARP, to the concerned taxpayers.
3. Receive and review the Monthly Status Report on TRS-LNs issued submitted by the concerned
LTAID1/LTAIDII/LTDO/RDO.
4. Monitor compliance by the concerned investigating o ces, in providing online real-time updates (on
TRS-LN status and collection) relative to TRS-LNs downloaded by the said o ces and provide
online updates on TRS-LNs using system access rights and privileges granted.
5. Submit to WTD, copy furnished CS, a Consolidated Monthly Status Report on TRS-LNs Issued within
ten (10) days after the close of each month.
6. Receive from the requesting LTAID1/LTAIDII/LTDO/RDO/investigating o ce the duly accomplished
"Preprocessed" TRS Data Request Form (RF).
7. Evaluate the RF before forwarding the same to the WTD for extraction of the desired TRS data. TcIaHC
8. Assign a control number to all approved RFs. Maintain a permanent record book of all approved RFs.
The record book shall contain the following information:
• RF control number
• Date of RF
• Name of the requesting Office/Officer
• Type of Information requested
• Amount of Gross Income Payment
• Amount of withholding tax
• LA Number
• Taxable Year covered
• Taxpayer's Name
• Taxpayer's TIN
9. Monitor utilization of "Preprocessed" TRS data referred to the concerned
LTAID1/LTAIDII/LTDO/investigating offices as narrated hereunder:
(a) Receive the Quarterly Status Report on "Preprocessed" TRS Data Utilization from the
LTAIDI/LTAIDII/LTDO on or before the 20th day following the close of each quarter.
(b) Ascertain compliance by the investigating offices on the submission of prescribed reports.
(c) Evaluate the extent of TRS data utilization by the investigating office.
(d) Consolidate the reports submitted by the investigating o ces for transmittal to WTD, copy
furnished CS, on or before the tenth (10th) day following the close of each month.
10. Evaluate the Summary List of TRS-LNs for Conversion to issue-based LAs submitted by the
LTDO/other investigating office (Annex "D") prior to approval.
11. Upon approval of the above list, prepare/accomplish and sign the corresponding LAs.
12. Prepare a consolidated list of LNs converted to LAs (per LTDO/other investigating o ce) and
transmit a copy of the said list to the CS, thru the WTD.
13. Transmit the approved/signed LAs, together with the duly accomplished/approved Summary List of
TRS-LNs for conversion to LAs, to the concerned investigating o ces for encoding of the
required information in the LA Monitoring System (LAMS) and for service to the concerned
taxpayers.
14. Receive from the LTDO/investigating o ce the Monthly Collection Report on LAs with TRS-LN
Discrepancy (Annex "O3") on or before the 10th day following the close of each month for review
and monitoring purposes.
15. Analyze the statistical report on TRS-LNs issued per LTDO/investigating o ce and review the online
consolidated TRS-LN status and collection report and print the same as needed in order to
provide progress reports on TRS-LN status and collection as may be required by top
management.
E. LTDO/RDO/LTAID1/LTAIDII/investigating o ces or special team/task force handling TRS cases or
Preprocessed Data shall:
1. Acknowledge thru e-mail receipt of the following from the WTD:
• List of taxpayers issued TRS-LNs and identified by a system-assigned control number
• System-generated TRS-LNs
• Details of Withholding Agents/Payors and Payees Report (DWAPR)
• Details of "Preprocessed" TRS Data acted upon
2. Print the DWAPR and the Details of "Preprocessed" TRS Data.
3. Serve the TRS-LNs, together with the DWAPR, to the taxpayer within ve (5) days from the receipt
thereof. The ACIR-LTS/RD shall be furnished with a copy of the list of TRS-LNs sent under its
jurisdiction within the same period.
4. Determine appropriate action on the TRS-LNs issued to taxpayers with TRS data discrepancy: CIHTac
a. If there is an existing Letter of Authority (LA)

a.1. Where the investigation of the tax liability of the taxpayer for the period covered by the
TRS-LN is on-going
a.1.a. Refer the TRS-LNs, together with the DWAPR, to the concerned RO for
inclusion of the data in its on-going audit/investigation. However, the reports
of investigation for the income tax covered by LA, including ndings in the
TRS-LN shall be nished within 30 days from referral of the TRS-LN, for
regional cases and 60 days from referral of the TRS-LN, for LTS cases.
Findings on VAT or Percentage Tax on the TRS-LN shall be processed
independent of the LAs for these tax types.
a.1.b. Require the concerned RO to include in its report of investigation the extent of
utilization of the discrepancy reflected in the TRS-LN.
a.1.c. Forward to the concerned Assessment Division or its equivalent o ce the
docket bearing on the issued TRS-LN for review and evaluation of the extent
of utilization of the discrepancy reflected in the TRS-LN.
a.2. Where the case has undergone processing at the RDO/investigating o ce and is
pending review at the Assessment Division/or its equivalent office:
a.2.a. Refer the TRS-LN, together with the DWAPR, to the Assessment Division or its
equivalent o ce to ascertain if the discrepancy was considered by the
investigating o cer in his report of investigation. If the discrepancy was
considered, recommend cancellation of TRS-LN.
a.2.b. If the discrepancy was not considered, receive from the Assessment Division
or its equivalent o ce the docket and the TRS-LN, together with the DWAPR,
for delivery of the TRS-LN and DWAPR to the taxpayer and collection of the
basic tax, plus increments, on corrected taxable base. De ciency Income Tax
shall, however, be collected if the deadline for ling the Annual Income Tax
Return has already lapsed.
a.3. Where the case is already closed and terminated.
a.3.a. Refer the TRS-LN, together with the DWAPR, to the Assessment Division or its
equivalent o ce to ascertain if the discrepancy was considered by the
investigating o cer in his report of investigation. If the discrepancy was
considered, recommend cancellation of the TRS-LN.
a.3.b. If the discrepancy was not considered, receive from the Assessment Division
or its equivalent o ce the docket and the TRS-LN, together with the DWAPR,
for delivery of the TRS-LN with the DWAPR to the taxpayer for the collection of
the following taxes:
i. If the discrepancy is over thirty percent (30%), require the taxpayer to pay
the basic tax plus increments on corrected taxable base for
Withholding Tax, Income Tax and business taxes (VAT and/or
Percentage Taxes), Excise Tax, other taxes.
ii. If the discrepancy is not more than thirty percent (30%), require the taxpayer
to pay the basic tax plus increment on corrected taxable base for
Withholding Tax and Business Taxes (VAT and/or Percentage Tax),
Excise Tax, other taxes.
iii. De ciency tax and penalties for under withholding, non-withholding, under-
remittance, non-remittance, late-remittance etc.
Additional de ciency assessments based on TRS-LNs shall be issued only in instances
where the tax cases are not yet prescribed. However, even if the case has already
been considered to have prescribed under the 3-year prescription rule but there was
underreporting of over 30% of tax due, assessment notices and demand letters shall
still be issued.
b. If there is no existing audit case viewed in the LAMS, serve the TRS-LN to the concerned
taxpayer within five (5) days from receipt thereof.
b.1. If the taxpayer pays the required taxes within the prescribed deadline in the TRS-LN,
consider the TRS-LN case closed.
b.2. Taxpayer's request for installment payment of the basic tax due plus increments per
TRS-LN may be granted in accordance with the following:
b.2.a. No installment payment shall be allowed if the amount payable is not
more than five hundred thousand pesos (P500,000.00)
b.2.b. If the amount payable exceeds P500,000.00 but not more than P3.0M,
payment may be done in two (2) equal installments:
i. First installment must be on the deadline set in the TRS-LN
ii. Second installment, within 30 days from the deadline of rst installment or
upon approval by the ACIR/RD concerned.
b.2.c. If the amount payable exceeds P3.0M, payment may be done in three (3) equal
monthly installments.
Any request for deviation from the above-prescribed payment scheme shall be subject to the
recommendation of investigating office and approval of higher authorities, as follows:
1. Over P500,000 up to P10M HREA/ACIR-LTS/ACIR CS/RD
2. Over P10M DCIR-OG/CIR

All approved Applications for Installment Payments (Annexes "H" & "H-1") shall be signed by
both the Recommending O cer and Approving O cer and the same shall be entered in
the TRS for tracking purposes, if electronically feasible. If not feasible, the
RDO/RD/WTD/LTS/investigating o ces shall manually track payments of taxpayers with
requests for installment payments.

For cases with request for installment payments, a system-generated Reminder Letter (Annex
"I") shall be released to the taxpayer one (1) week before the due date of the installment.
For cases with past due installments, a system-generated Follow-up Letter (Annex "K")
shall be sent to the taxpayer one (1) week after the due date of the installment.
For the investigating RO to be able to release the follow-up letter, a system-generated Summary
Report of Overdue Installment (Annex "J") shall be generated every rst working day of the
week.
b.3. If the taxpayer is refuting the accuracy of the gures in the TRS-LN, together with the
DWAPR:
b.3.a. Validate and evaluate the merit of the protest by reconciling the gures
against the Withholding Tax Returns with attached alphalist (if
any)/VAT/Income Tax/Percentage tax returns, etc. filed by the taxpayers.
i. Require the TP to submit the necessary schedules and supporting
documents to substantiate his claim.
ii. Reconcile submitted documents against DWAPR and returns available in the
ITS.
iii. Check the accuracy against source documents (e.g. Payment Form, Tax
Returns, Alphalists, Certificates etc.).
iv. Require the TP to execute a Sworn Statement (Annex M) attesting the
veracity and authenticity of documents presented/submitted.
v. Recommend closure of TRS-LN, if warranted.
b.3.b. If the discrepancy is a result of erroneous encoding, update the ITS data and
submit report to WTD using Annex "L" for the latter to validate the same in the
ITS. Determine who committed the encoding error. This encoder should be
subjected to disciplinary action. Request WTD to initiate the production of
revised TRS-LN, or recommend closure of TRS-LN, if warranted.
b.3.c. If the discrepancy is on the data submitted by a third party, obtain Sworn
Statements from the TPI sources (Annexes "M1" and "M2") attesting to the
veracity of the data provided.
i. Prepare and send a "Con rmation Request" (CR) (Annex C) to be signed by
the heads of the concerned investigating o ce for purposes of
verifying the accuracy of the figures appearing in the DWAPR.
ii. If the TPI source agrees with the gures in the CR, secure a sworn
statement to allow the RO to build a case. The con rmation by the
Taxpayer/withholding agents/TPI source should be embodied in a
Confirmation Certificate" (CC) (Annexes "G" and "G-1").
iii. Request for CC from the TPI source, if necessary.
If the TPI source would not want to con rm the data as provided to the BIR, this TPI
source shall be subjected to tax fraud investigation.
b.3.d. If the TPI source is outside of the jurisdiction of the
RDO/LTAIDI/LTAIDII/LTDO/WTD/Investigating O ce where the TP is
registered:
i. Prepare a CR to be transmitted to and signed by the CIR where the latter
shall request for a sworn statement and Con rmation Certi cate
signed by the TPI source.
ii. Assist the head of the investigating o ce in the preparation of Monthly
Status Report of CRs (Annex "N") transmitted outside his o ce/to the
CIR office and submit the same to the WTD for information.
iii. Monitor compliance on the request for signature on CRs released to CIR.
iv. Provide the taxpayer fifteen (15) days to reconcile the figures.
v. If TP interposes no more objections, require the payment of de ciency
taxes and penalties, if any.
b.3.e. If the TP objects/protests the Sworn Statements of the TPI source:
i. The RO concerned may recommend the most appropriate enforcement
action to expedite the recovery of unpaid taxes (e.g. issuance of issue-
based LA, surveillance, stock taking or legal action).
ii. The RO shall implement the audit/investigation following RAMO 1-2000, 2-
95, 1-91 and 1-90, as may hereafter be amended, and observe the
mandatory reporting requirements embodied under RMO No. 53-98 as
may be amended. In cases of surveillance or stocktaking, the same
shall be in accordance with pertinent revenue issuances.
iii. The RO shall nish the case and terminate audit within thirty (30) days from
receipt of TPI source Sworn Statement.
In the event that the report cannot be rendered within the prescribed period
due to constraints attributable to the TP, indicate the reasons in the
Lists of TRS-LNs "Under Protest" selected for Audit (Annex O) to be
attached to the Quarterly Report of TRS-LNs issued, to be submitted to
the WTD, copy furnished CS. Nonetheless, the issue-based audit should
be finished within 30 days for regional cases and 60 days for LTS cases
from the issuance of the issue-based LA.
iv. Prepare and send nal follow-up letter (Annex "Q") informing that inaction
shall result to the issuance of PAN within 15 days upon receipt thereof.
v. Check if there is a need to issue "Notice of Informal Conference".
vi. Prepare issue-based Letter of Authority, "Notice for Informal Conference"
and if no response within fteen (15) days from receipt, transmit the
docket to the Assessment Division or equivalent o ce for PAN/FAN
preparation. WTD shall prepare LA/PAN/FAN during the pilot stage.
vii. Transmit the docket to the Assessment Division or its equivalent o ce for
the preparation of PAN and FAN, as the case may be.
b.4. If the taxpayer received the TRS-LN but fails to respond within fteen (15) days from
receipt of the TRS-LN, the LTDO/investigating o ce shall issue a follow-up letter
(Annex "R").
b.4.a. If despite the follow-up letter received by the TP, still no response within
fteen (15) days is received from the taxpayer, prepare issue-based Letter of
Authority, "Notice for Informal Conference" and if no response within fteen
(15) days from receipt, transmit the docket to the Assessment Division or
equivalent o ce for PAN/FAN preparation. WTD shall prepare LA/PAN/FAN
during the pilot stage.
b.4.b. Forward to Assessment Division or its equivalent o ce the docket attaching
thereto the duly received copy of TRS-LN, DWARP, follow-up letter, issue-
based LA, Notice for Informal Conference, endorsement memo for issuance
of PAN and FAN, as the case may be, following the guidelines and procedures
provided by RR No. 12-99.
b.5. If the TRS-LN cannot be served because the taxpayer cannot be located, consult the
TPI-source as to the current address of taxpayer and try to locate the said current
address of taxpayer for service of the TRS-LN.
Exhaust all means (e.g. consult the TPI source, SEC, DTI, LGU, MERALCO, PLDT, MWSS,
etc.) within fteen days from the date of failure to serve or to locate the taxpayer as
observed in the service of LA or in the case of corporation, locate whereabouts of
corporate o cers and submit to the Chief
WTD/LTDO/LTAIDI/LTAIDII/RDO/investigating o ce an appropriate report in
writing for proper disposition of LN by the DCIR-OG/CIR and consequently for the
removal of the same from the accountability of the case officer.
5. Institute collection proceedings.
6. Prepare a Quarterly Status Report on TRS-LNs issued (Annex "D") and transmit to the Chief, WTD for
consolidation, who in turn shall submit the same to the ACIR-CS/DCIR-OG/CIR within twenty (20)
days after the close of each quarter. HAaDTI
7. Prepare the "Preprocessed" TRS Data Request Form (RF) (Annex "E") for approval/signature of the
RD/ACIR-LTS/ACIR-CS in three (3) copies to be distributed as follows:
Original — WTD
Duplicate — RD/LTS
Triplicate — file copy
8. Submit the following reports to the Chief WTD and ACIR-LTS/ACIR-ES/RD.
a. Quarterly Status Report on TRS-LNs issued (Annex "D") on or before the 20th day of the
following quarter;
b. Quarterly Status Report on "Preprocessed" TRS Data Utilization (Annex "F") on or before the
twentieth (20th) day following the close of the quarter.
F. Assessment Division/LTS or its equivalent office shall:
1. Where the investigation of the tax liability of the taxpayer pursuant to a LA for the period covered by
the TRS-LN is on-going at the time of receipt of the TRS-LN and DWAPR:
a. Receive the docket containing the report of investigation pursuant to the LA and TRS-LN.
b. Follow the prescribed procedures in the review of dockets and ascertain whether the
discrepancy re ected in the TRS-LN was considered by the RO in the report of
investigation.
If the discrepancy was not considered, require the concerned RO to incorporate the
discrepancies.
2. Where the case is pending review/already closed and terminated at the time of receipt of TRS-LN and
DWAPR.
a. Receive the TRS-LN together with the DWAPR.
b. Follow the procedures laid out in this RMO where ndings in the TRS-LN shall be incorporated
in the docket if the case is pending review or, where the case was already terminated,
process separately ndings in the TRS-LN. Consult procedures laid down in the preceding
paragraphs of this RMO.
G. Office of DCIR-Operations Group (OG)/CIR shall:
1. Spell-out the parameters and prescribe the threshold in the issuance of TRS-LN.
2. Receive from the SOD List of Taxpayers issued TRS-LNs sorted by RR/RDO or LTS/LTDO within one
(1) day from printing thereof for monitoring purposes.
3. Receive from the LTS/CS a Consolidated Monthly Status report on TRS-LNs issued within twenty ve
(25) days after the close of each month.
4. Receive from the WTD the Consolidated Quarterly Status Report on TRS-LNs issued on or before the
twentieth (20th) day of the second month following the close of the quarter.
5. Evaluate the PAN and the FAN prepared by the WTD for approval of the DCIR-OG during the pilot
stage, unless otherwise provided in other provisions of this RMO or subsequent
amendatory/supplemental RMO.
6. Monitor the over-all implementation of the TRS-LN System.
H. ISDS through Systems Development Division shall:
1. Determine the technical capabilities of existing facilities to ensure timely generation of accurate
discrepancy reports.
2. Provide adequate support and technical assistance to the SOD in the extraction and generation of
discrepancy reports.
3. Make data available to OG/LTS/CIR through the WTD. Original Data received by WTD can only be
viewed and not editable by the investigating o ces. Attachments such as alphalists should be in
the form of the original le format submitted by the taxpayer, as well as converted excel les
format which can be easily analyzed by the investigating office. aACHDS
V. Repealing Clause
This Order supersedes all revenue issuances or portions thereof inconsistent herewith.
VI. Effectivity
This order takes effect immediately.
(SGD.) LILIAN B. HEFTI

Commissioner of Internal Revenue
ANNEX A
Quezon City
LETTER NOTICE
(TAX RECONCILIATION SYSTEM - TRS)
LN No. __________
__________________________________________RDO.
__________________________________________ TIN _____________
No. ________
__________________________________________ Date _____________
Sir/Madam :
A computerized matching conducted by the Bureau on information/data provided by Withholding Agents/Payors and
Payees/Income Recipients against your declarations per INCOME/VAT/Percentage/Withholding Tax returns
disclosed the following discrepancy/ies for the calendar/fiscal year ended ___________.
1. AGENT-TAXPAYER RECONCILIATION
A. Gross Sales/Income Payment per P
Alphalists
of Payors to one & the same payee
VAT PERCENTAGE INCOME TAX
TAX
B. Gross sales/Income/receipts per
payee's
returns filed
C. Discrepancy on gross sales/revenues/ P P P
receipts (A-B)
D. Percentage (%) of discrepancy on
sales/revenues/receipts (C/A)
E. Discrepancy on Sales/Revenue x
GPRate x
Income Tax Rate ==========
F. VAT/percentage tax discrepancy
(discrepancy on gross sales/revenues/========== ==========
receipts x VAT rate/percentage tax
rate)
Less: Amount previously paid
G. Income/VAT/Percentage Tax still
payable
H. Tax withheld per alphalists of all
payors
I. Tax withheld claimed per returns filed
by the payee
J. Discrepancy on taxes withheld P P P
claimed
by payee
K. TOTAL DISCREPANCIES P P P
(agent-TP recon) (G+J)
2a. AGENT RECONCILIATION COMPENSATION EXPANDED FINAL GMP

(VAT/PERCENTAGE)
L. Total withholding tax due per annual P
alphalists
M. Total remittance per monthly/quarterlyP
returns
N. Discrepancy on remittance (L-M)
O. Penalties for late filing/payment
P. Non-compliance of year-end-
adjustment
Q. Other withholding tax violations
R. Discrepancy on total remittances P
2b. LINE-BY-LINE RECONCILIATION
S. Total withholding tax due per
TRS recomputation P
T. Total withholding tax due per annual/
quarterly/monthly alphalists
U. Discrepancy on tax withheld (S-T) P
V. Other Penalties
W. Discrepancy on withholding tax
(line-by-line) P
X. TOTAL DISCREPANCIES (agent recon)
Y. (R-W)
TOTAL DISCREPANCIES (K+X) P
In line with the Bureau's policy of affording taxpayer the opportunity to reconcile the above discrepancy(ies), you are
hereby invited to this Bureau Withholding Tax Division-BIR National O ce, Diliman, Quezon City on (to be set by the
WTD/investigating o ce, which should not be more than 15 days from receipt of LN) from 8:00 a.m. to 12:00 noon,
to present any documentary evidence in connection therewith. EaISDC
Should you agree with the ndings of discrepancy(ies) stated above, you are hereby directed to pay the resulting
deficiency tax(es) using BIR Form 0605. The computation of the deficiency tax shall be based in BIR Form 2112-W
Any payment of de ciency tax(es) under this LN shall be credited against any assessment that may be made by the
appropriate BIR O ce pursuant to a notice of investigation provided the discrepancies disclosed by said audit are of
the same nature as the above discrepancy.
If, however, you have already paid the taxes due before the receipt of this letter, submit proof of such payment
to the undersigned, Attention: The Chief, Withholding Tax Division , at the soonest time possible. Furthermore, upon
payment of the taxes resulting from the aforesaid under-declaration(s)/discrepancy(ies), submit a photocopy of the
Validated BIR Forms 0605 to the same office.
Should you fail to make a correct disclosure of sales/revenues/receipts/purchases/expenses and pay the
corresponding taxes due thereon within the deadline set above, we will be constrained to fully enforce the provisions
of the Tax Code which, among others, provide that under-declaration of sales, receipts and income, as well as
violations on withholding tax rules and regulations, are grounds for administrative, civil and/or criminal action.
Furthermore, Sec. 115 of the Tax Code empowers the Commissioner or his authorized representative to suspend
business operations and temporarily close the business of any VAT-registered taxpayer found understating its
sales/income or receipts by thirty (30%) or more of its corrected taxable sales/income or receipts for the taxable
period. cIEHAC
You may call the BIR Hotlines at 926-9347/927-0998/926-9351 for further information.
We trust that this matter will merit your preferential attention.
Very truly yours,
LILIAN B. HEFTI
OIC-Commissioner of Internal Revenue
Received by: ____________________ Revenue Officer: ___________________
Signature over Printed Group Supervisor: __________________
Date (mm/dd/yyyy): _______________ Chief of Office: ____________________

ANNEX B
DETAILS OF WITHHOLDING AGENTS/PAYORS AND PAYEES/INCOME RECIPIENTS RECORDS
(Source : WITHHOLDING TAX RETURNS — ALPHALISTS)
ANNEX B1
DATAILS OF WITHHOLDING AGENTS/PAYORS AND PAYEES/INCOME RECIPIENTS RECORDS
(Source: WITHHOLDING TAX RETURNS — ALPHALISTS)

ANNEX B2
DETAILS OF WITHHOLDING AGENTS/PAYORS AND PAYEES/INCOME RECIPIENTS RECORDS
(Source : WITHHOLDING TAX RETURNS — ALPHALISTS)
ANNEX C
CONFIRMATION REQUEST
Date _______________
____________________
____________________
____________________
Dear Sir/Madam :
Kindly advise this Office of the accuracy of the Gross Income Payment (net of VAT) and taxes withheld of:
_________________________________________________
(Registered Name of Taxpayer)
as reported in your return with attached alphalists:
____ BIR Form 1604E ____ BIR Form 1601-E ____ BIR FORM 1600
____ BIR Form 1604CF ____ B1R Form 1601-C ____ BIR FORM 1602
____ BIR Form 1603 ____ BIR Form 1601-F ____ BIR FORM 1606

the amount stated below, or of any exceptions you may take thereto.
You are requested to comply with this request within ten (10) days from receipt hereof by signing the loan below.
Kindly submit to (Chief WTD/LTDO/investigating o ce) located at ________________________________ telefax:
__________ ADEacC
Very truly yours,

__________________________________
Chief of WTD/LTDO/investigating office
Prepared by: _____
LN: ____________
BIR Form No. _________
Period Covered: Nature of income ATC Tax base Tax rate Tax
mm/dd/yyyy payment withheld
_________ _________ _________ _________ _________ _________
_________ _________ _________ _________ _________ _________
_________ _________ _________ _________ _________ _________
_________ _________ _________ _________ _________ _________
TOTAL _________ _________ _________ _________ _________
(please attach additional sheets if necessary)
Dear Sir/Madam :
The figures represented above are correct, EXCEPT as follows:
Period Nature of ATC Tax base Tax Tax

Covered: income rate withheld DISCREPANCY
mm/dd/yyyy payment
_________ _________ _________ _________ _________ _________ _________
_________ _________ _________ _________ _________ _________ _________
_________ _________ _________ _________ _________ _________ _________
TOTAL _________ _________ _________ _________ _________ _________
Very truly yours,

Signature over printed Name
Position: _______________
Tel. Nos: ______________
DATE: ________________
ANNEX D
WTD/RDO/LTAIDI/LTAIDII/LTDO/INVESTIGATING OFFICE
Monthly Status Report on TRS LNs Issued
For the Month of __________, 200___

Certified True and Correct
_______________________________________________________
Prepared by: ____________________
Legend:
1 Indicate V for VAT or I for income tax or P-percentage Tax
2 Compute using BIR Form 2112W
3 Regular audit per LA is still on-going
4 Regular audit per LA is closed or docket pending review
5 Letter Notice referred to WTD (for confirmation of data with TPI source or if taxpayer still cannot be located
despite consultation with TPI source as to current address).
6 Letter Notice referred to National Investigation Division for use in its investigation pursuant to a Letter of
Authority.
7 Letter Notice referred to RDO where taxpayer is presently registered
8 With ITS changes/updates; indicate A if acted/reported under Annex L and R if erroneous encoding was
resolved in favor of the taxpayer or U if discrepancy unresolved even after ITS
N Deficiency basic tax on findings other than the discrepancy per LN
O Deficiency basic tax on discrepancy per LN
P Includes interests, surcharge, compromise penalty, if any.
ANNEX E
"PREPROCESSED" TAX RECONCILIATION DATA REQUEST FORM
TO: The Chief
Withholding Tax Division
Date: __________
Please furnish us with the data/information as specified hereunder:
Name of Taxpayer: _________________________________________________
Taxpayer Identification No.: _________________________________________________
Business Address: _________________________________________________
Requesting Revenue Officer: _________________________________________________
Letter of Authority (LA): _________________________________________________
Period Covered: _________________________________________________
Information Requested:
as reported in the RETURN with attached alphalists:
____ BIR Form 1604-E ____ BIR Form 1601-E ____ BIR FORM 1600

____ BIR Form 1604CF ____ BIR Form 1601-C ____ BIR FORM 1603
____ BIR Form 1603 ____ BIR Form 1601-F ____ BIR FORM 1606
PERIOD NAME TIN Nature of income payment ATC TAX TAX WITHHOLDING TAX
MMMDDYYYY BASE RATE
___________ _________ _________ ________________________ _________ _________ _________ ___________________

TOTAL _________ ________________________ _________ _________ _________ ___________________
Very truly yours,

________________________________
RDO/LTDO/INVESTIGATING OFFICE
To be filled up by RR/LTS/ES
RF Control No.: _______________
Date Received: _______________
Receiving Officer _______________
Date Released _______________
Approved by:
_______________________________
ACIR-LTS/ACIR-ES/Regional Director
RF Control No.: ________________
Date Received: ________________
Receiving Officer: ________________
Date Released: ________________
Approved by:
Prepared by/date: ______________
Reviewed by/date: _____________ _______________

Chief, WTD
ANNEX F
Quarterly Status Report on "Preprocessed" TRS Data Utilization
As of _____________, 200___

ANNEX G
CONFIRMATION CERTIFICATE
This is to certify that I/We (as payor/s) , __________________ have income payments on purchase of ______ goods
and/or _______ services from
Name: ______________________________________________________________
Address: ____________________________________________________________
TIN ________________ (12 digits) for taxable year _____ as follows:
Gross Income Payment

period Gross Income Gross Tax
net of
(mmddyyyy) VAT Payment net of VAT Income rate
-Goods- -Services- Payment — Tax withheld
(Cash-C or Credit-Cr) (Payments) non VAT
_________________ ________________________ _____________________ _______________ ______________ _____________________

_________________ ________________________ _____________________ _______________ ______________ _____________________
_________________ ________________________ _____________________ _______________ ______________ _____________________
_________________ ________________________ _____________________ _______________ ______________ _____________________
Grand Total ________________________ _____________________ _______________ ______________ _____________________
It is further certi ed that I/we have claimed the deducted and remitted taxes withheld on the aforesaid
expenses/purchases, and that the original VAT or non-VAT invoices/receipts are part of our accounting records.
__________________________________
Registered Name of Taxpayer
By:
_________________________ _________________________
(Signature Over Printed Name) (Signature Over Printed Name)

Chief Accountant/Equivalent Chief Finance Officer/Equivalent
SUBSCRIBED AND SWORN to before me, this ____ day of ______ 200_, at _____________, a ants exhibiting to me
their Community Tax Certificates, as follows: SDTIaE
Name CTC Number Date of Issue Place of Issue
____________ ____________ ____________ ____________
NOTARY PUBLIC
Doc. No. ______
Page No. ______
Book No. ______
Series of 200 ______
Reference : LN No. ________
RO ____________
ANNEX G-1
CONFIRMATION CERTIFICATE
This is to certify that I/We (as payee/s), __________________ have income payments on purchase of ______ goods
and/or _______ services from
Name: ______________________________________________________________
Address: ____________________________________________________________
TIN ________________ (12 digits) for taxable year _____ as follows:
period Income earned/ Income earned/ Income
(mmddyyyy) SALES net of VAT SALES net of VAT earned — Tax
-Goods- -Services- non — rate Tax withheld
(Cash-C or Credit-Cr) (Payments) VAT
_________________ ________________________ _____________________ _______________ ______________ _____________________
_________________ ________________________ _____________________ _______________ ______________ _____________________
_________________ ________________________ _____________________ _______________ ______________ _____________________
_________________ ________________________ _____________________ _______________ ______________ _____________________
Grand Total ________________________ _____________________ _______________ ______________ _____________________
It is further certi ed that I/we have declared our income sales and deducted/credited taxes withheld on the
aforesaid; and that the original VAT or non-VAT invoices/receipts are part of our accounting records. HaECDI
________________________
Registered Name of Taxpayer
By:
________________________ ________________________
(Signature Over Printed Name) (Signature Over Printed Name)
Chief Accountant/Equivalent Chief Finance Officer/Equivalent
SUBSCRIBED AND SWORN to before me, this __ day of ______ 200__, at _______________, a ants exhibiting to
me their Community Tax Certificates, as follows:
____________ ____________ ____________ ____________

____________ ____________ ____________ ____________
NOTARY PUBLIC
Doc. No. ______

Page No. ______
Book No. ______
Series of 200 ______
Reference : LN No. ________
RO ____________
ANNEX H
APPLICATION FOR INSTALLMENT PAYMENT (over 500T-10M)

Date ____________
The Honorable Commissioner
Bureau of Internal Revenue
Quezon City
Sir :
I/We acknowledge receipt of your TRS LN No. _______ dated ________ informing me/us of the discrepancy of P
_____________ under _______ (tax type) for the period __________. HDICSa
As a result of the above discrepancy, our computed tax liability are as follows:
AMOUNT
Basic P____________
Surcharge _____________
Interest _____________
Compromise _____________
Total P____________
I/We hereby request for installment payment of the aforesaid tax liability under the following schedule:
Installment Amount Due Date
1st Installment P ________________ _______________
2nd Installment ________________ _______________
3rd Installment ________________ _______________
4th Installment ________________ _______________
5th Installment ________________ _______________
6th Installment ________________ _______________
Total P ________________ _______________
I/We are made to understand that failure to pay any installment on or before the date xed for its payment, the
same will be subject to adjustment in the interest and the balance of the amount shall be collected in full for failure to
pay any of the installments. HDcaAI
___________________________________ ________________ ____________

SIGNATURE OVER PRINTED NAME OF TITLE/POSITION TIN
TP/TP AUTHORIZED REPRESENTATIVE
ACCREDITED TAX AGENT No. ____ date issued _____ expiry date
_______
To be filled-up by BIR
Received by: _____________ Date Received: _____________

Evaluated by: ____________ RDO No: _________________
Recommending Approval:
___________________________________________________
RDO/WTD/LTAID/LTDO/NID/INVESTIGATING OFFICE Chief
Approved/Disapproved:
[] Approved for ______ installments
[] Disapproved:
Reason for Disapproval _______________
_____________________________
ACIR-CS/ACIR-LTS/ACIR-ES/RD
Date: _______________
ANNEX H-1
APPLICATION FOR INSTALLMENT PAYMENT (10M above)
Date __________________
The Honorable Commissioner
Bureau of Internal Revenue
Quezon City
Sir :
I/We acknowledge receipt of your TRS LN No. _______ dated ________ informing me/us of the discrepancy of P
_____________ under tax type for the period __________.
As a result of the above discrepancy, our computed tax liabilities are as follows:
Percentage VAT Income Tax WC( ) WE( ) WF( ) WG( ) WB( )

Basic ___________ P_________ ___________ P___________________
Surcharge ___________ __________ ___________ ____________________
Interest ___________ __________ ___________ ____________________
Compromise ___________ __________ ___________ ____________________
Total ___________ P_________ ___________ P___________________
I/We hereby request for installment payment of the aforesaid tax liability under the following schedule:
Installment Amount Due Date
1st Installment P ________________ _______________

2nd Installment ________________ _______________
3rd Installment ________________ _______________
4th Installment ________________ _______________
5th Installment ________________ _______________
6th Installment ________________ _______________
Total P ________________ _______________
I/We are made to understand that failure to pay any installment on or before the date xed for its payment, the
same will be subject to adjustment in the interest and the balance of the amount shall be collected in full for failure to
pay any of the installments. DHcESI
___________________________________ ________________ ____________

SIGNATURE OVER PRINTED NAME OF TITLE/POSITION TIN
TP/TP AUTHORIZED REPRESENTATIVE
ACCREDITED TAX AGENT No. ____ date issued _____ expiry date _______
To be filled-up by BIR
Received by: _____________ Date Received: _____________
Evaluated by: ____________ RDO No: _________________
Recommending Approval:
___________________________________________________
[] Approved for ______ installments

[] Disapproved:
Reason for Disapproval _______________
__________________________
DCIR-OPERATIONS GROUP
ANNEX I
REMINDER LETTER
(INSTALLMENT PAYMENT)
Date __________
Name of Taxpayer ___________
Address ___________________
TIN ______________________
Sir/Madam :
This is to remind you that your ____ installment in the amount of P _____ as embodied in your Application for
Installment Payment dated ________, is due on or before ______________ per TRS LN No. __________ dated ___________
informing us of the TRS discrepancy of P ___________ under ________ (TAX TYPE) for the period _____________. CHEIcS
In order to avoid the imposition of penalties incident to your non-payment of the same, this O ce is
encouraging you to make the necessary payment on or before the above-stated due date. That failure to pay any
installment on or before the date xed for its payment, the same will be subject to adjustment in the interest and the
balance of the amount shall be collected in full for failure to pay any of the installments.
Please give this matter your preferential attention.
Very truly yours,
_______________________________________________________
Chief WTD/RDO/LTAIDI/LTAIDII/LTDO/Investigating Office
Attachment: Approved Application for Installment Payment
Prepared & verified correct by: ____________
Reviewed by: _____________
ANNEX J
WTD/RDO/LTDO/INVESTIGATING OFFICE
SUMMARY REPORT OF OVERDUE INSTALLMENTS
AS OF __________, 200____
SYSTEM GENERATED
Amount of Due Date No. of Days
Taxpayer's Total Tax
Control No. RDO NO. TIN Installment Due (MM/DD/YYYY) Overdue
Name Due
_____________ ______________ ______________ ___________ P___________ P_____________ _______________ ____________

_____________ ______________ ______________ ___________ ___________ _____________ _______________ ____________
_____________ ______________ ______________ ___________ ___________ _____________ _______________ ____________
_____________ ______________ ______________ ___________ ___________ _____________ _______________ ____________
_____________ ______________ ______________ ___________ ___________ _____________ _______________ ____________
_____________ ______________ ______________ ___________ ___________ _____________ _______________ ____________
_____________ ______________ ______________ ___________ ___________ _____________ _______________ ____________
_____________ ______________ ______________ ___________ ___________ _____________ _______________ ____________
_____________ ______________ ______________ ___________ ___________ _____________ _______________ ____________
_____________ ______________ ______________ ___________ ___________ _____________ _______________ ____________
_____________ ______________ ______________ ___________ ___________ _____________ _______________ ____________
TOTAL P___________ P___________
ANNEX K
FOLLOW-UP LETTER
Date ___________
Name of Taxpayer
Address
TIN
Sir/Madam :
The records of this O ce show that your _____ installment in the amount of P __________ is already past due despite
our follow-up letter dated __________ under TRS LN No. __________________ dated _____________.
You are hereby given ten (10) days from receipt hereof to settle your unpaid liabilities. If we fail to hear from you
within the said period, a formal letter of demand and assessment notice shall be issued by this O ce calling for
payment of your de ciency taxes, inclusive of all civil penalties and interest. If however, you have already paid the
installment due before receipt of this letter, submit proof of payment to this O ce, Attention: ______________ at the
soonest possible time.
Please give this matter your preferential attention. aAHDIc
Very truly yours,

__________________________________________
Chief WTD/RDO/LTDO/Investigating Office

Telephone Nos. __________________
Prepared & verified correct by: __________________
Reviewed by: ___________________
ANNEX L
REPORT ON CHANGES/UPDATES TO ITS
For the period ending ____________, 200__

1. Documents which form the basis(es) of the change/update e.g., Income/Value-Added Tax Returns; Letter of Protest
of TP, etc.
2. Indicate if (P) due to erroneous posting or (E) erroneous data capture/encoding of data (C) Others (please specify)
THaAEC
Verified true and correct:

_______________________________________________________
ANNEX M
For Taxpayer
SWORN STATEMENT
I, ______________________________ (name), ___________________________ (owner/position) of
________________________________ (Registered Name of Taxpayer Issued TRS LN) with business address at
_____________________ and TIN _______________ after having been duly sworn to in accordance with law, hereby depose
and state that:
1. The figures/discrepancy reflected in TRS Letter Notice (LN) No. ___________ dated _________ issued in favor of
_______________ is not an accurate statement of our sales/purchases and VAT/non-VAT liabilities for
taxable year _______.
2. The gures shown hereunder represent our actual sales/purchases to/from the following
customers/suppliers and the corresponding withholding taxes as recorded in the books of accounts and
as declared in the returns filed for taxable year ______.SACHcD
Vatable/non-VAT Sales/Purchases (Goods & Services)

Name of Customers/Suppliers Net of VAT
mm/dd/yyyy mm/dd/yyyy mm/dd/yyyy mm/dd/yyyy Total
__________________________ __________ ______________ ______________ ___________ _____________
__________________________ __________ ______________ ______________ ___________ _____________
__________________________ __________ ______________ ______________ ___________ _____________
__________________________ __________ ______________ ______________ ___________ _____________

3. We have declared the output and input taxes (VAT) on the aforesaid sales/purchases amounting to P
____________ respectively and that the original VAT/non-VAT invoices/receipts and the Certi cates of
Creditable Taxes Withheld at Source/Certi cate of VAT and Percentage Taxes Withheld are part of our
accounting records.
4. We hereby attest to the veracity of the Schedules of Sales/Purchases (Annex/es ______) and authenticity of
the supporting documents, e.g., invoices, receipts, etc. presented to the Bureau of Internal Revenue (BIR)
for purposes of substantiating the sales/purchases gures re ected in the above Schedules and
declared as such in the returns required to be filed by the BIR for taxable year ______. CIDcHA
__________________________________
Registered Name of Taxpayer Issued LN
__________________________________
(Signature Over Printed Name)
President/Chief Finance Officer/Equivalent

SUBSCRIBED AND SWORN to before me, this _____ day of ________, 200____, at __________, a ant exhibiting to
me his/her Community Tax Certificate, as follows: CTaSEI
____________ ____________ ____________ ____________
____________ ____________ ____________ ____________
NOTARY PUBLIC
Doc. No. ______
Page No. _____
Book No. _______
Series of 200 _____
ANNEX M1
For Taxpayer's Supplier
SWORN STATEMENT
I, ____________________________________ (name), _________________________ (owner/position) of
________________________________ (Registered Name of Taxpayer's Supplier) with business address at
________________________________ and TIN _______________________ after having been duly sworn to in accordance with
law, hereby depose and state that: CHTAIc
1. _______________________________ (Taxpayer's Supplier) sold goods/services to _______________________________

(Registered Name of Taxpayer Issued TRS LN) with business address at ______________________ and TIN
_______________ for taxable year ____________ as follows:
Non-Vatable Sales Vatable Sales
Qtr (Goods/Services) (net of VAT) Withholding Tax
1st _________________ _____________ _______________
2nd _________________ _____________ _______________
3rd _________________ _____________ _______________
4th _________________ _____________ _______________
TOTAL _________________ _____________ _______________
2. __________________________ (Taxpayer's Supplier) has claimed tax credits on the aforesaid sales and the
original VAT/non-VAT invoices/receipts are part of our accounting records.
3. The aforesaid sales were included in the Annual Alphalists/MAP/SAWT submitted to the Bureau of Internal
Revenue.
____________________________________
Registered Name of Taxpayer's Supplier

___________________________________
(Signature Over Printed Name)
President/Chief Finance Officer/Equivalent

SUBSCRIBED AND SWORN to before me, this _____ day of ________, 200____, at __________, a ant exhibiting to
me his/her Community Tax Certificate, as follows: ScAIaT
____________ ____________ ____________ ____________

NOTARY PUBLIC
Doc. No. ______
Page No. _____
Book No. _______
Series of 200 _____
ANNEX N
WTD/LTDO/LTAIDI/LTAIDII/INVESTIGATING OFFICE
Monthly Status Report on Confirmation Request
Transmitted to Another Investigating Unit
For the month of __________, 200__
ANNEX O
List of Letter Notices "Under Protest" Selected for Audit
For the month of ________, 200__
ANNEX O1
Summary List of Letter Notices for Conversion to Letters of Authority **
(for LNs unserved or served but no response after the lapse of the 60 day period from issuance thereof)

ANNEX O2
WTD/LTDO/INVESTIGATING OFFICE
Summary List of Letter Notices for Conversion to Letters of Authority **
(for LNs with discrepancy not resolved within the 120 day period from issuance thereof)
ANNEX O3
RDO/INVESTIGATING OFFICE
Collection Report on Letters of Authority with LN Discrepancy **
(Covering All Taxpayers issued LAs before or subsequent to LN issuance)
For the month of _________, 200__
ANNEX P
COMPUTATION SHEET
Under Tax Reconciliation System (TRS)
Covered by a Letter of Notice Pursuant to
RMO No. ________
ANNEX P-1

COMPUTATION SHEET
Under Tax Reconciliation System (TRS)
Covered by a Letter of Notice Pursuant to
RMO No. ________
ANNEX Q
FINAL FOLLOW-UP LETTER
NOTICE OF INFORMAL CONFERENCE
(TAX RECONCILIATION SYSTEM — TRS)

LN No. ________
TIN ___________
RDO. No. ______
Date __________
_________________________
_________________________
_________________________
Sir/Madam :
This is a nal follow-up letter on computerized matching conducted by the Bureau on information/data provided by
Withholding Agents/Payors and Payees/Income Recipients against your declarations per
INCOME/VAT/Percentage/Withholding Tax returns disclosed the following discrepancy/ies for the year ended
__________.
Letter Notice No. _____________ /Letter of Authority No.(LOA) _________
Dated: ______________________ Dated: __________________
Total discrepancy: _____________
hereby invited to this Bureau _______________________ (address of WTD/LTDO/investigating o ce) on
_______________________ (to be set by WTD/LTDO/investigating o ce which should be 60 days after date of LN/15
days after receipt of LOA) from 8:00 a.m. to 12:00 noon, to present any documentary evidence in connection
therewith. DCATHS
de ciency tax(es) using BIR Form 0605. The computation of the de ciency tax shall be based on the formula
prescribed in BIR Form 2112-W
the same nature as the above discrepancy. cAaTED
If, however, you have already paid the taxes due before the receipt of this letter, submit proof of such payment to the
undersigned, Attention: ________________________________________ (Chief WTD or LTDO/investigating o ce who served
the LN), at the soonest time possible. Furthermore, upon payment of the taxes resulting from the aforesaid under-
declaration(s)/discrepancy(ies), submit a photocopy of the Validated BIR Forms 0605 to the same office.
Should you fail to make a correct disclosure of income/purchases/expenses and pay the corresponding taxes due
thereon within the deadline set above, we will be constrained to fully enforce the provisions of the Tax Code which,
among others, violations on withholding tax rules and regulations and provides that under-declaration of sales,
receipts and income is a ground for administrative, civil and/or criminal action. Furthermore, Sec. 115 of the Tax Code
empowers the Commissioner or his authorized representative to suspend business operations and temporarily close
the business of any VAT-registered taxpayer found understating its sales/income or receipts by thirty (30%) or more
of its corrected taxable sales/income or receipts for the taxable period.
That inaction within fteen (15) days upon receipt thereof shall result to the issuance of Preliminary Assessment
Notice (PAN). You may call the BIR Hotlines at ____________________________________ (telephone number of the
WTD/LTDO/investigating office) for further information.
We trust that this matter will merit your preferential attention. STcEIC
Very truly yours,

LILIAN B. HEFTI
By:
__________________________________________________
CHIEF WTD/LTDO/RDO/LTAIDI/LTAIDII/Investigating Office
Received by:
________________________
Signature over Printed Name

Date: ________________________
Refer to:
Revenue Officer: ___________

Group Supervisor: __________
ANNEX R
FOLLOW-UP LETTER
(TAX RECONCILIATION SYSTEM-TRS)
LN No. ________
TIN ___________
RDO. No. ______
Date __________
_________________________
_________________________
_________________________
Sir/Madam :
This is a follow-up letter on computerized matching conducted by the Bureau on information/data provided by
Withholding Agents/Payors and Payees/Income Recipients against your declarations per
INCOME/VAT/Percentage/Withholding Tax returns disclosed the following discrepancy/ies for the year ended
__________.
Letter Notice No. _____________
Dated: __________________
Total discrepancy: _____________
hereby invited to this Bureau _______________________ (address of WTD/LTDO/investigating o ce) on
_______________________ (to be set by WTD/LTDO/investigating o ce which should be 30 days after date of LN) from
8:00 a.m. to 12:00 noon, to present any documentary evidence in connection therewith.
de ciency tax(es) using BIR Form 0605. The computation of the de ciency tax shall be based on the formula
prescribed in BIR Form 2112-W cHDEaC
the same nature as the above discrepancy.
If, however, you have already paid the taxes due before the receipt of this letter, submit proof of such payment to the
undersigned, Attention: ________________________________________ (Chief WTD or LTDO/investigating o ce who served
the LN), at the soonest time possible. Furthermore, upon payment of the taxes resulting from the aforesaid under-
declaration(s)/discrepancy(ies), submit a photocopy of the Validated BIR Forms 0605 to the same office.
Should you fail to make a correct disclosure of income/purchases/expenses and pay the corresponding taxes due
thereon within the deadline set above, we will be constrained to fully enforce the provisions of the Tax Code which,
among others, violations on withholding tax rules and regulations and provides that under-declaration of sales,
receipts and income is a ground for administrative, civil and/or criminal action. Furthermore, Sec. 115 of the Tax Code
empowers the Commissioner or his authorized representative to suspend business operations and temporarily close
the business of any VAT-registered taxpayer found understating its sales/income or receipts by thirty (30%) or more
of its corrected taxable sales/income or receipts for the taxable period. caSEAH
You may call the BIR Hotlines at ________________________________ (telephone number of the WTD/LTDO/investigating
office) for further information.
We trust that this matter will merit your preferential attention.
Very truly yours,
LILIAN B. HEFTI

By:
__________________________________________________
CHIEF WTD/LTDO/RDO/LTAIDI/LTAIDII/Investigating Office

Received by:
________________________
Signature over Printed Name

Date: ________________________
Refer to:
Revenue Officer: ___________
Group Supervisor: __________

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September 17, 2007

REVENUE MEMORANDUM ORDER NO. 28-07

TO All Internal Revenue Officers and Others Concerned

C. Enhance voluntary compliance of WAs.

CD Technologies Asia, Inc. © 2018 cdasiaonline.com

C. Pre-audit of electronically available returns shall be done thru TRS.

CD Technologies Asia, Inc. © 2018 cdasiaonline.com

CD Technologies Asia, Inc. © 2018 cdasiaonline.com

6. Maintain master le of all TRS-LNs generated, received and transmitted to regions/LTS/investigating

CD Technologies Asia, Inc. © 2018 cdasiaonline.com

a. If there is an existing Letter of Authority (LA)

2. Over P10M DCIR-OG/CIR

CD Technologies Asia, Inc. © 2018 cdasiaonline.com

(SGD.) LILIAN B. HEFTI

2a. AGENT RECONCILIATION COMPENSATION EXPANDED FINAL GMP

Signature over Printed Group Supervisor: __________________

Date (mm/dd/yyyy): _______________ Chief of Office: ____________________

CD Technologies Asia, Inc. © 2018 cdasiaonline.com

CD Technologies Asia, Inc. © 2018 cdasiaonline.com

Very truly yours,

Period Nature of ATC Tax base Tax Tax

Very truly yours,

CD Technologies Asia, Inc. © 2018 cdasiaonline.com

CD Technologies Asia, Inc. © 2018 cdasiaonline.com

___________ _________ _________ ________________________ _________ _________ _________ ___________________

Very truly yours,

Prepared by/date: ______________

Reviewed by/date: _____________ _______________

CD Technologies Asia, Inc. © 2018 cdasiaonline.com

Gross Income Payment

_________________ ________________________ _____________________ _______________ ______________ _____________________

(Signature Over Printed Name) (Signature Over Printed Name)

Name CTC Number Date of Issue Place of Issue

____________ ____________ ____________ ____________

Name CTC Number Date of Issue Place of Issue

____________ ____________ ____________ ____________

Doc. No. ______

APPLICATION FOR INSTALLMENT PAYMENT (over 500T-10M)

___________________________________ ________________ ____________

Received by: _____________ Date Received: _____________

Percentage VAT Income Tax WC( ) WE( ) WF( ) WG( ) WB( )

1st Installment P ________________ _______________

___________________________________ ________________ ____________

[] Approved for ______ installments

Reviewed by: _____________

_____________ ______________ ______________ ___________ P___________ P_____________ _______________ ____________

Very truly yours,

Chief WTD/RDO/LTDO/Investigating Office

CD Technologies Asia, Inc. © 2018 cdasiaonline.com

Verified true and correct:

Vatable/non-VAT Sales/Purchases (Goods & Services)

__________________________ __________ ______________ ______________ ___________ _____________

__________________________ __________ ______________ ______________ ___________ _____________

__________________________ __________ ______________ ______________ ___________ _____________

Registered Name of Taxpayer Issued LN

President/Chief Finance Officer/Equivalent

Name CTC Number Date of Issue Place of Issue

____________ ____________ ____________ ____________

Date (mm/dd/yyyy): _ Chief of Office: ______

_______ _ _ ________________ _ _ _ _______________

Reviewed by/date: _ ___

_____ _ _ _____________

_______________________

Received by: _ Date Received: _

1st Installment P __ _

_______________________

___ _ P_ P_ _ ____

__________________ _ _________

__________________ _ _________

__________________ _ _________

1. _ (Taxpayer's Supplier) sold goods/services to _