BIR open letter to taxpayers

BIR open letter to taxpayers

The Commissioner of Internal Revenue (CIR) has issued an open letter which encourages taxpayers to file early their tax returns, and reminds them of the following procedures and requirements in the preparation and filing of their income tax returns.

    1. To avoid imposition of penalties, taxpayers should use the current tax returns and accomplish all information in their income tax returns (ITRs). 

The required forms for purposes of filing of income tax returns (ITRs)  are BIR Form 1702 – July 2008 ENCS (Annual ITR for corporations, partnerships and other non-individual taxpayers); BIR Form 1701 –July 2008 ENCS (Annual ITR for self-employed individuals, estates, and trusts; BIR Form 1700 – July 2008 ENCS (Annual ITR for individuals earning purely compensation income).

      2. Only three sets of copies of ITRs and attachment are required to be submitted to the BIR. 

The BIR or AAB shall stamp “received” only the first page of the 3 copies of ITR, audit certificate, the balance sheet, and income statement pursuant to RMO Nos. 6-10 and 13-10.

       3. Submission of statement of management responsibility as attachment to the ITR.

The statement of management responsibility should duly signed by the individual taxpayer, president, or managing partner, and  the CEO/CFO or their equivalent, or any officer performing similar functions as required under Revenue Regulations 03-10.

     4.  Indication of  accreditation number of tax agent/practitioner in the tax forms and  documents 

This is required under RR 11-06 if the tax agent or practitioner represents the taxpayer or files the ITR on behalf of taxpayer.

To make tax compliance easier, the CIR would like to inform taxpayers that all BIR offices and most of AABs shall be open on April 10, 2010.  In case of assistance, taxpayers may call the BIR contact center at 981-888, access the BIR website at www.bir.gov.ph, or call/visit the nearest RDO or BIR tax assistance center.

The CIR also took the opportunity to inform taxpayers of the various programs being implemented by the BIR to ensure full tax compliance of taxpayers like the conduct of taxpayer lifestyle check and the re-invigorated run after tax evaders (RATE) program. According to the CIR, the BIR shall, after the tax-filing deadline, publish the top taxpayers in every revenue district office and taxpayers with the highest income tax payments nationwide.

For more details, please see a copy of letter of the CIR as attached.