October 20, 1995

REVENUE MEMORANDUM ORDER NO. 35-95

SUBJECT : Prescribing Procedures to Write-off Uncollectible Accounts Receivables
TO : All Regional Directors, Revenue District Officers and Revenue Officer Concerned

I. OBJECTIVES

1. To prescribe procedures and guidelines in the proper disposition of accounts receivables;
2. To accurately monitor the movement of accounts receivables as explicitly provided fur under
the Bureau of Internal Revenue Manual (BIRM) particularly Section 200;
3. To clearly define the delineation of functions in the cancellation and disposition of accounts
receivables.

II. GUIDELINES

This Order shall cover the following accounts receivables which could no longer be collected for
various reasons, to wit:

1. The taxpayer is deceased, leaving no distrainable and leviable assets;
2. The taxpayer is already residing abroad without distrainable and leviable assets in the
Philippines;
3. The taxpayer is declared insolvent by the court or is found to be incapable of earning a living
upon verification;
4. The taxpayer is a foreign national who came to the Philippines as a consultant or a foreign
corporation who has done business in the Philippines and left after the completion of the
project leaving no distrainable and leviable assets;
5. The taxpayer's whereabouts (whether individual or corporation) is unknown without
distrainable and leviable assets);
6. The taxpayer is a corporation, which has been dissolved and its subscribed shares of stock
have been paid and its responsible officers could no longer be located;
7. The accounts receivables remain uncollected for a period of two (2) years after the lapse of
the three (3) year mandatory period to collect;
8. The accounts receivables have been overtaken by prescription as provided for under the Tax
Code and court decisions; and
9. The taxpayer availed of previous tax amnesties as duly certified to by the Tax Amnesty
Implementation Office but which were not closed by ATCA.

III. PROCEDURES

For every case declared to be uncollectible and recommended to be written-off, the following steps
should be undertaken:

1. Secure the documents enumerated below, if the taxpayer is an individual:
a. Certification from at least; three (3) different Register of Deeds or the Provincial, City or
Municipal Assessors where he is believed to own real properties in those cases where the
taxpayer is deceased, abroad and/or his whereabouts is unknown;
b. Certification of at least three (3) banks within the vicinity of the taxpayer's residence
where he is known to have bank deposits;
c. Secure a copy of his death certificate, if the taxpayer is deceased; and
d. Secure a certification for his last known address from the Professional Regulations
Commission or the Supreme Court and other pertinent government and non-government
agencies which have supervision of the taxpayer's profession, if the taxpayer is unknown
and is a Professional;
2. Secure a copy of the Articles of Incorporation and latest financial statement from the
Securities and Exchange Commission, if the taxpayer is a corporation and has been dissolved
or has ceased operations.
3. Perform appropriate tasks related to the questions in the Fieldman's Affidavit of Uncollected
Taxes for individuals or corporations;
4. Prepare a recommendation and an ATCA, together with the duly accomplished Fieldman's
Affidavit of Uncollected Taxes which shall form part of the accounts receivables docket;
5. Forward the case to the Revenue District officer for signature through the Head, Collection
Unit and the Assistant Revenue District Officer.
6. Revenue District Officer:
7. Forward the docket to the Assessment Division for approval pursuant to RMO 37-94 after
signing the recommendation and the ATCA;
8. Assessment Division:
9. Forward the docket with approved recommendation and ATCA to the Administrative Division
for file and future reference; and,
10. Prepare a Monthly List of Accounts Cancelled by ATCA (see attached BIR Form No. 1247)
under this order duly signed by the Chief of the Assessment Division which shall be
distributed as follows:

Original and Duplicate Deputy Commissioner for Operations thru ACIR Collection,
Attention: The Chief, Collection Programs Division

Triplicate Revenue District Officers concerned to update their inventory.

Quadruplicate File

IV. REPEALING CLAUSE

This Order amends RMO 40-87 and all other existing issuances or portions thereof inconsistent with
this Order.

V. EFFECTIVITY

This Order shall take immediately after its approval.




LIWAYWAY VINZONS-CHATO
Commissioner of Internal Revenue


Republic of the Philippines
Department of Finance
BUREAU OF INTERNAL REVENUE
Quezon City
FIELDMAN'S AFFIDAVIT OF UNCOLLECTED TAXES
( for Individual Taxpayers)

The Commissioner of Internal Revenue
or the Regional Director


That I, ________________, Revenue Officer ________, assigned at ____________________, do
hereby certify that the taxes enumerated below have not been collected by me.


NAME AND ADDRESS KIND OF TAX ASS. NO. & DATE DUE AMOUNT
PERIOD
COVERED


I further certify that I have unable to collect the said tax primarily because
_____________________________________________________________

Questions to be Answered
1. Is the taxpayer unknown, deceased, insolvent, sickly, or over 65 years old?
__________________.
2. Who is the person now residing in the last known address of the taxpayer?
_______________. Does he/she know the present whereabouts of the taxpayer? __________. If so,
what is the specific address?. ________________.
3. In checking the records of the employer of the taxpayer, what is the taxpayer's present
address? ______________________________
4. In checking the telephone directory, does the taxpayer have a telephone number where he
can be contacted? _________. If so, have you tried contacting him/her? _______? How about his/her
spouse? _____________.
5. In checking the latest list of income tax filers, what is the new address of the taxpayer?
_____________________
6. In checking the records of the Register of Deeds/Municipal/Revenue Collection Agent of
______________, what is the present address of the taxpayer? _____________________________.
7. In checking the records of the Register of Deeds/Municipal or City Assessor of
_____________, does the taxpayer have registered property? __________ How about his/her
comment? _______________,
8. Who is the relative of the taxpayer you have talked to? ________________ What is his/her
comment? ____________________.
9. In checking the school, _______________________, nearest to the taxpayer's given a
address, to what school did the children transfer? ________________________________________
10. Is the taxpayer a foreigner? _________, If so, when did he/she leave the country
?___________________________.
11. In your written inquiry with the Information Systems Operation Service, what is the new
address of the taxpayer? ___________________________________.
IN WITNESS WHEREOF, I have hereunto affixed my signature this _______th of _________,
199______, at ________________.
_____________________
Revenue Officer
SUBSCRIBED AND SWORN TO before me this ______th day of _______________, 199_____.
______________________________
Officer Authorized to Administer Oath

Republic of the Philippines
Department of Finance
BUREAU OF INTERNAL REVENUE
Quezon City
FIELDMAN'S AFFIDAVIT OF UNCOLLECTED TAXES
( for Corporation Taxpayers)

The Commissioner of Internal Revenue
or the Regional Director

That I, ___________________, Revenue Officer, assigned at ______________________, do hereby
certify that the taxes enumerated below have not been collected by me:


NAME AND ADDRESS KIND OF TAX ASS. NO. & DATE DUE AMOUNT
PERIOD
COVERED


I hereby certify that I have been unable to collect the said tax principally because
______________________________.

Questions to be Answered
1. If the taxpayer is no longer in its last known address, where is it now located?
_____________________________
2. In checking the latest alpha of income tax filers, what is the new address of the taxpayer?
__________________
3. In checking the latest record of the registration of books of accounts at the Office of the
Revenue Collection Agent of ___________ or the Revenue District Office of ________________, what
is the new address of the taxpayer? _______________________
4. In checking the records of the Register of Deeds Assessor Office of ___________, does the
taxpayer have real properties? ________.
5. In checking the records of the SSS or SEC, what is the new address of the taxpayer?
_______________________.
6. In the copy of the Articles of Incorporation hereto attached, what are the names and
addresses of the stockholders?

Name Address Unpaid Subscribed
Stocks
______________ ______________ ______________
______________ ______________ ______________
______________ ______________ ______________
______________ ______________ ______________
______________ ______________ ______________
______________ ______________ ______________
______________ ______________ ______________
______________ ______________ ______________
______________ ______________ ______________

Where you able to locate any or all of them in their respective address? ____________. If so, what is
their stand on this case? ____________________.
7. Since when did the taxpayer stop operation? __________.
8. Did you attach a copy of its latest financial statement in this affidavit? _______________.
9. In your written inquiry with the ISOS, what are the new addresses of the stockholders,
directors or officers of the corporate taxpayer?

Name of Stockholder/ New Address
Director/Officer









IN WITNESS WHEREOF, I have hereunto affixed my signature this ______ day of __________,
199___, at ________ __________, Philippines.
___________________
Revenue Officer
SUBSCRIBED AND SWORN TO before me this _____ day of ______, 199_____.
_______________________________
Officer Authorized to Administer Oath

C o p y r i g h t 2 0 0 8 C D T e c h n o l o g i e s A s i a, I n c.

09-01-1995 Revenue Memorandum Order No. 34-95