Quezon City
March 1, 2002
REVENUE MEMORANDUM ORDER NO. 4-2002
TO : The Regional Directors, Revenue District
Officers of Computerized Sites, RDC Heads
and Others Concerned
SUBJECT : Prescribing Policies, Guidelines and
Procedures in the Implementation of Taxpayer
Account Management Program (TAMP) Amending
further certain provisions of RMO 22 - 2000
as amended by RMO 12 2001 affecting the
Returns Compliance System (RCS) and the
Total Registration Database Clean up under
the ITS Sustainability for Operations
Project.
I. OBJECTIVES
A. To institutionalize the Tax Account Management
Program (formerly Adopt-A-Taxpayer Program) in the
Operations Group
B. To purify the Registration Database .
C. To address issues obtaining at computerized RDOs
affecting the ITS.
II. POLICIES
A. The Taxpayer Account Management Program (TAMP) is
similar to the Account Executive and Account Manager
Concept in the Private Corporate environment which
shall be part of performance measurement of the
individual Revenue Officers (RO).
B. Taxpayer Account Management Program shall focus on
the top business taxpayers, whether individuals or
non-individuals which accounts for at least 80% of
District Collections.
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C. A Total Registration database clean-up is mandated
not later than June 30, 2002.
D. A Task Force shall be created thru a Revenue Special
Order (RSO) to implement this Order and monitor
performance of the computerized RDOs.
E. The Task Force shall continue to implement the
Program until such time that the Internal Audit
Division (IAD) has developed the skills and staffing
of the Division to sustain these audits.
F. Computerized Metro Manila and Metro Cebu RDOs are
classified as Large Districts.
G. Other computerized RDOs outside the Metro area shall
be classified in accordance with the Assessment
Service classification as Large, Medium or Small
Districts.
H. Metro Districts shall initially be assigned the Top
1000 Taxpayers of the District from CBR list plus
10% or 100 Top Taxpayers taken from RPS list, but
which are not appearing in the CBR list.
I. Other Districts categorized as Medium districts
shall be assigned 600 Top Taxpayers and 400 for
small RDOs plus 10% (60 and 40 respectively) of the
Top Taxpayers listed in the RPS list but not
appearing in the CBR list.
III. PROCEDURES
A. For Taxpayer Account Management Program (TAMP)
(1) The Revenue Data Centers (RDCs) shall generate
the list of top taxpayers for all RDOs under
their respective jurisdiction taken from the CBR
system based on the total tax payments for all
tax types of the taxpayers.
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(2) A similar list of top taxpayers shall also be
generated by the RDC based on gross sales or
revenues for all RDOs taken from the RPS
listing.
(3) Both lists shall be forwarded to the respective
RDOs who shall prepare the recommended list of
the Top Taxpayers of the RDO.
(4) A matching shall be made and the Top Taxpayers
from the RPS listing not appearing in the CBR
list shall be recommended by the RDO for
inclusion but in no case shall it be more than
10% of the total number of the taxpayers
included in the CBR listing.
(5) A final list from the two listings (CBR and RPS)
shall be submitted by the RDO through their
respective RDCs to the Task Force for approval.
(6) Upon approval, the RDO shall equitably assign
the selected Top Taxpayers (Accounts) to all the
Revenue Officers (Managers) of the Assessment
Section of the District.
(7) Assignment to Group Supervisors / Revenue
Officers will be submitted to the Task Force
through the respective RDCs for upload into the
systems database by the Systems Maintenance and
Support Division (SMSD), Information Systems
Development Service (ISDS). The list shall
contain the following:
a. Name of Group Supervisor
b. Name of Revenue Officer
c. Name of Taxpayer (sequentially
numbered)
d. TIN
(8) Upon receipt of assignment of the selected
Taxpayers for the TAMP, the Revenue Officer (TP
Account Manager) shall prepare a Masterlist of
the Top Taxpayer Accounts. (Annex A)
(9) The Revenue Officer (Account Manager) shall
monitor transactions of his assigned Taxpayers
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after each tax deadline by filling up details of
Monthly Monitoring Sheet (Annex B).
(10)The Revenue Officer and Group Supervisor shall
be responsible in instructing his assigned
Taxpayer on the following:
a. A validation of all Registration Data
b. Proper filling up of tax forms
c. Duties and responsibility of the
Taxpayer
d. Update on relevant new issuance
e. Use of correct branch code on each and
every tax return and payment
f. Tax Deadlines, among others
(11)A stopfiler list from the selected Top
Taxpayers shall be generated by the RDC on a
monthly basis and a reminder letter will be
printed with the name of the assigned Revenue
Officer and Group Supervisor. (Annex C) An
attach list of all stopfiler open cases of the
Top Taxpayers cumulative of all violations
shall accompany the reminder letter. (Annex C-
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(12)The reminder letter to the Taxpayer, which
bears the Revenue Officers and Supervisors
name, shall serve as the basis for contacting
his Taxpayer to resolve Stopfiler Open Cases.
(13)Assignment of stopfiler case shall be done
automatically on a monthly basis, however under
exceptional cases, the RDO maybe allowed to
assign cases on-line.
(14)Exit Criteria for the next set of Top Taxpayers
for the program shall be released to the RDO
after meeting the minimum KPIs for RPS, CBR
and RCS (Stopfiler) for at least four (4)
consecutive weeks.
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B. For Total Registration Database Clean-up
An alarming suspense rate for CBR and RPS and
unresolved Stopfiler cases has been monitored
indicating a need for total clean-up in the
Registration database in all computerized Revenue
District Offices.
Following are the top errors encountered in the
Registration System from transactions of taxpayers:
1. CBR System Top 10 Errors
ERROR DESCRIPTION
CODE
UR TIN unregistered in RDO
IC Invalid TIN Check digit
DB Different Branch Exists
IF Invalid Form Type
NB Tax Type not for Branch
UT Unregistered Tax Type
LI Invalid Drawee Bank
BT Blank TIN
NC Null Return Period
Component
LD DTL Amt not Equal to
Type A
2. RPS Top 10 Errors
ERROR DESCRIPTION
CODE
1015 TIN Unregistered in RDO
1000 No Value/Invalid REG
Value
2003 Incorrect Amended Flag
3021 Previous Return not yet
Filed
1002 Tax Type not Registered
2002 Filer is not the
Nominated FIL
3022 Previous Return Required
but I
3085 Required Tax Amount is
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Empty
1017 TIN Exists with Different
Branch
2011 Invalid Form Type/Return
Period
The RDOs shall focus their registration clean-up on
the above stated errors, to an acceptable level.
Registration Error Report (Annex D) shall be
accomplished by the Taxpayer Account Manager
(Revenue Officer / Group Supervisor).
IV. KEY PERFORMANCE INDICATORS (KPIs)
The following KPIs for purposes of the Sustainability
Project and the Registration Clean-up by June 30, 2002
are as follows:
A. Suspense Rates for Top Taxpayers (Sustainability
Standard)
a. CBR less than 1%
b. RPS less that 5%
B. Returns Compliance System (Stopfiler)
1. Case Closure - 80%
Formula: No. of Cases Closed X 100
No. of Cases Assigned
2. Collection from Stopfiler Cases closed
C. Multiple / Identical TIN Clean up by RDOs
1 Non individual 100%
2 Individuals 80%
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V. REPORTING REQUIREMENT
A. Weekly monitoring of KPIs for all activities covered
by this RMO shall be generated by their respective
RDCs every Monday and forwarded to the Task Force
for consolidation.
B. The weekly consolidated report prepared by the
Project Manager shall be submitted to the DCIR,
Operations Group who is also the Project Director,
ITS Sustainability Project for Operations and copy
furnished the following:
1. Deputy Commissioner, Information Systems Group
2. Assistant Commissioner, Large Taxpayers Service
3. Regional Directors, Computerized Regions
4. Revenue District Offices, Computerized RDOs
5. RDC Heads
6. Members of the Task Force
C. Performance of each RDO shall be ranked in the
weekly-consolidated report to highlight performance
and effectiveness.
D. Quarterly Group Supervisors evaluation report on the
performance of each Revenue Officer on stopfiler
case closure and collection shall be generated.
E. Weekly Progress report on the Total Registration
Database Clean up shall be submitted by the RDO to
the Task Force thru their RDCs for consolidation and
evaluation on the following: (as of _______)
1. Resolution of Multiple/Identical TIN:
a. Non Individual
a.1
Balance
Resolved
Pending
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b. Individual
b.1
Balance
Resolved
Pending
2. CBR System Error Resolution
Error Description Open Resolved Pending
Code Cases
3. RPS Error Resolution
Error Description Open Resolved Pending
Code Cases
VI. EFFECTIVITY
This Order takes effect immediately.
(Original Signed)
REN G. BAEZ
Commissioner of Internal Revenue
