Requirement of Authority to Accept Payment (ATAP)
- Employers must require employees who have recomputed second installment payments to present a copy of their ATAP.
- The ATAP confirms payment of the second installment and must be attached to the employee's income tax return submitted to the employer.
Handling Late Filed Refundable Returns
- Refundable 1701A returns filed late are accepted by the Office of the Collection Officer.
- Taxpayers must obtain ATAPs to pay penalties for late filing.
- The validated ATAP is attached to the ITR and submitted to the employer to be included in the Amended Alpha List of Employees.
Employer Recomputations Without Employees' ITRs
- Employers recomputing excess tax payments without employee ITRs will be assessed for under-remittance of tax payments in the month refunds/credits are made.
Stamping and Verification of Tax Returns
- Recomputed 1701A returns must be stamped by employers with "RECOMPUTED UNDER RA 7167 FOR (HUSBAND/WIFE)".
- Employers are responsible for procuring/preparing the necessary stamps.
- Copies of employees' 1991 ITRs attached to the Amended Alpha List must be stamped "Verified from the Original Duplicate Copy" and signed by the employer.
Lost Income Tax Returns
- Employees who lost their 1991 ITRs must secure a certified true copy from the Revenue District Office (RDO) where they filed their return.
Handling of Married Couples' Exemptions
- Employers must require both husband and wife, if separately filing, to present both ITR copies to verify claims on additional exemptions for qualified dependents.
- Only one spouse can claim the additional exemption for dependent children.
- If both have claimed it, correction will be made during recomputation, and notes added to respective ITRs clarifying which spouse claimed it.
Claims by Employees Not Included in Employer Recomputations
- Employees omitted from the recomputation and Amended Alpha List must file a written claim for refund.
- This claim must include the employee's ITR and a certification from the employer confirming the omission.
Verification and Recomputations by RDO
- The RDO verifies employee claims and ensures no prior recomputation was done by the employer.
- RDO performs recomputation using Pre-Audit Sheets for 1701 returns as prescribed by annexed guidelines.
- Pre-Audit Sheets are attached to recomputed returns and forwarded to the Tax Credit/Refund Division (TC/RD) for review.
Preparation of Tax Refund Notices (TRNs)
- The Collection and Investigation Support Section (CISS) prepares TRNs based on reviewed Pre-Audit Sheets and supporting documents.
- Taxpayers' ITRs involved must not have Document Locator Numbers (DLN).
Duties of the RDO Upon Receiving Amended Alpha Lists
- Checks completeness of supporting documents and attached ITRs/ATAPs.
- Verifies that refunds/credits are only made to employees with valid ITRs/ATAPs.
- Validates exemption claims and mathematical accuracy of credits/refunds.
- Assesses withholding agents for any unpaid collectible amounts due to under-withholding.
- Reports the number and amount of assessments issued to the Withholding Tax Division by January 15, 1993.
- Processes and transmits to TC/RD refundable ITRs filed after submission of Amended Alpha Lists and refund claims by former employees.
Amendments to Policies on Separated Employees and Refund Procedures
- Separated employees who have new employers must submit their 1991 ITRs for recomputation to their current employer.
- Employees no longer employed must file written claims for refund with certified ITR copies and withholding tax statements to RDO.
- Employers may credit adjusted refundable amounts against future withholding starting September 1992 or refund immediately.
- Amounts refunded by employers are to be repaid through reduced remittance in subsequent months until fully recovered.
Repealing Clause and Effectivity
- This Revenue Memorandum Order repeals or amends all inconsistent prior issuances.
- The Order takes effect immediately upon adoption on September 11, 1992.