Revenue Memorandum Circular · RMC

RMC No. 3-2022

To clarify the preparation of assessment notices for compromise penalty(ies), pursuant to RMO No. 7-2015 and RR No. 12-99, as amended by RR No. 18-2013, in the issuance of a deficiency tax assessment, and to prescribe uniform Part I/Part II notice formats and separate payment forms.

Bureau of Internal RevenueIndependent research copy

Document type: RMC
Number: 3
Year: 2022
Text quality: Not specified

Document text

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RMC No. 3-2022 (January 14, 2022) clarifies how assessment notices are prepared when compromise penalties arise in a deficiency tax assessment. Citing RMO No. 7-2015 and RR No. 12-99, as amended by RR No. 18-2013, it restates that compromise penalties (amounts paid in lieu of criminal prosecution under a compromise agreement with the Commissioner) must be itemized but must appear in a separate assessment notice/demand letter from the deficiency basic tax, surcharge, and interest. For uniformity, the RR No. 18-2013 formats (Preliminary Assessment Notice and Formal Letter of Demand) shall now have Part I for deficiency basic tax(es) and civil penalties and Part II for assessed compromise penalties from violations uncovered in audit, with prescribed annexes (Annex A, B.1, B.2). Payment must also be prepared separately: BIR Form No. 0605-Payment Form for Part I amounts and BIR Form No. 0605 for compromise penalties in Part II (Annex C).