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[ BIR REVENUE MEMORANDUM ORDER NO. 61-97, December 31, 1997 ]



The purpose of this Order is to accelerate the collection of taxes through compromise pursuant to Section 204, NIRC, as amended by RA No. 7646.


This Order is issued to give the opportunity to taxpayers with outstanding receivable accounts with the Bureau to settle their tax liabilities and reduce if not eliminate the large inventory of delinquent accounts of every Revenue District Offices.


1. The Revenue Regional Approval Committee (RRAC), with the Regional Director as its Chairman, created under Revenue Memorandum Order No. 45-93 dated September 29, 1993 is hereby authorized to settle/compromise delinquent accounts covering the period from 1996 and prior years, the basic taxes of which do not exceed FIVE HUNDRED THOUSAND PESOS (P500,000.00), provided that the collection in each case shall not be lower than the following prescribed minimum percentages:

Jeopardy assessments — 10% of the basic tax
Non-jeopardy assessments — 50% of the basic tax
Tax due per Return — 100% of the basic tax
Second Installment of Income Tax — 100% of the basic tax

2. The same minimum percentages shall apply to delinquent account cases with basic taxes exceeding FIVE HUNDRED THOUSAND PESOS (P500,000.00). However, dockets of the subject cases shall be forwarded to the Revenue National Approval Committee (RNAC), headed by the Commissioner, also created under the aforecited RMO No. 45-93, for final approval.

3. Final assessments issued against Large Taxpayers as defined under Section 4 of the NIRC Code shall not be compromised for less than fifty percent (50%). Any such compromise involving said taxpayers lower than fifty percent (50%) shall be subject to the approval of the Secretary of Finance.

4. Cases with WDL shall be included in the compromise settlement.

5. Cases pending in court (except those involving fraud) may, with leave of court, be the subject of a compromise settlement upon request of taxpayer.

For purposes of this program, the term "jeopardy assessment" shall refer to a delinquency tax assessment which was assessed without the benefit of complete or partial audit by an authorized revenue officer, who has reason to believe that the assessment and collection of a deficiency tax will be jeopardized by delay because of the taxpayer's failure to comply with the audit and investigation requirements to present his books of accounts and/or pertinent records, or to substantiate all or any of the deductions, exemptions, or credits claimed in his return.


The following procedures and guidelines shall be done by all Regional/Revenue District Offices:

1. Evaluate all delinquent accounts under its jurisdiction to determine which account will qualify as a jeopardy assessment, non-jeopardy assessment, tax due per return or second installment cases.

2. Prepare an ATCA to cancel the corresponding amount not covered by the compromise payment to be signed by the Regional Director.

3. Issue the appropriate Payment Form/ATAP for the amount to be paid by the taxpayers under this Order.

4. Direct the taxpayer to pay said tax liability to any Accredited Agent Bank (AAB ) or the Revenue Collection Officer where the taxpayer is registered.

5. Prepare a weekly list of the taxpayers who availed of the compromise settlement and submit the same to the Regional Directors copy furnished the Deputy Commissioner for Operations and the Assistant Commissioner for Collection.


All revenue issuances and/or portion(s) hereof which are inconsistent herewith are hereby amended accordingly.


This Order shall take effect immediately until December 31, 1997.

Adopted: 14 Nov. 1997

Commissioner of Internal Revenue

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