RMC No. 15-2020 Annex A

Annex A
Procedures in Responding to the Deficiency Tax Assessments
A. During the Discussion of Discrepancy
Any findings of discrepancies/disallowances that may lead to deficiency assessments

that were discovered during the audit/investigation by the Bureau of Internal Revenue
(BIR) shall be sent through a "Notice of Discrepancy" and the same shall be explained
to you or your authorized representative during the Discussion of Discrepancy.
If you agree with the audit findings and the corresponding deficiency-taxlyg[as
presented by the Revenue Officer/Group Supervisor handling the audit/investigation of
your case per electronic Leffer of Authority No. , dated
ou can sign the Agreement Form and pay the deficiency tax
type/s, including the applicable penalties and interest.
If you do not agree with the audit findings as presented during the discussion, the tax
docket of your case shall be transmitted to the reviewine office in the National Office
or Revenue Region for the issuance of deficiency tax assessment, as the case may be,
pursuant to Revenue Regulations (RR) No. 12-99, as amended.
B. Upon Receipt of the Deficiency Tax Assessment - Preliminary Assessment

Notice (PAl[)/Formal Letter of Demand and Final Assessment Notice
(FLD/FAr[)
After review and evaluation by the reviewins office, the said Office shall issue a PAN,
which should contain the computation of deficiency tax, the facts, the law, rules and
regulations or jurisprudence on which the proposed deficiency assessment is based. If
you fail to respond to or pay within fifteen (15) days from the date of receipt of the
PAN, an FLD and FAN shall be issued calling for payment of the deficiency tax(es),
inclusive of the applicable penalties.
The FLD/FAN calling for payment of your deficiency tax liabilities shall likewise state
the facts, the law, rules and regulations, or jurisprudence on which the assessment is
based, otherwise the assessment shall be considered void. In case you do not agree,
you may file an administrative protest within thirty (30) days from receipt of the
FLD/FAN.
C. Filing of Administrative Protest
C.l Filing of Administrative Protest with the Regional Director/Assistant

Commissioner or Authorized Higher Revenue Official
The protest on the FLD/FAN must be addressed to Assistant

Commissioner/Reeional Director or Authorized Higher Revenue Official and filed
with the office of the concerned aforementioned Revenue Official (Office that
issued the FLD/FAN) for proper recording and evaluation of your protest to
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determine if it is filed in accordance with Section 228 of the National Internal
Revenue Code of 1997, as amended, and its irnplementing rules'and regulations.
Your protest on the deficiency assessment may be a written request for

reconsideration or reinvestigation. A request for reconsideration is a plea for the
re-evaluation of the deficiency tax assessment on the basis of existing records you
have already submitted prior to the issuance of the FLD/FAN, whereas a request
for reinvestisation is a plea for re-evaluation of your case on the basis of newly'
discovered or additionol evidence that you intend to present in the reinvestigation
ofyour case.
You must state in your written protest the following:
r) Date of the assessment notice;
2) The nature of the protest, whether reconsideration or reinvestigation. If it

is reinvestigation, specify the newly discovered or additional evidence you
intend to present, which should be submitted within sixty (60) days from
the date of filing of your request for reinvestisation; and
3) Applicable law, rules and regulations orjurisprudence on which the protest

is based.
Your protest shall be considered void and without force and effect without the
aforementioned information/condition.
In case you fail to file a valid protest against the FLD/FAN within the 30-day
period, the deficiency tax assessment shall become final, executory and
demandable, and no request for reconsideration or reinvestigation shall be granted
after the said period.
The Assistant Commissioner/Regional Director or Authorized Hieher Revenue

Official shall issue a Final Decision on Disputed Assessment (FDDA) on your
protest which shall state the (i) facts, the applicable law, rules and regulations, or
jurisprudence on which the decision is based, and (ii) that the same is his final
decision. If you do not agree with the decision of the aforementioned Revenue
Official as contained in the FDDA, you may file a request for reconsideration with
the Office of the Commissioner (CIR) or file a judicial protest with the Court of
Tax Appeals within 30 days from receipt of the FDDA.
C.2 Filing of Administrative Protest with the Commissioner of Internal Revenue

(crR)
Only inactions or adverse decisions of the Assistant Commissioner/Reeional

Director or Authorized Higher Revenue Official shall be filed with the Office of the
CIR. The said administrative protest/appeal shall be evaluated
and acted upon by
the Appellate Division the
in National Office.
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C.3 Manner of Filing of Administrative Protest
Your protest may be filed in person or sent through registered mail with the Office
mentioned in C.l and/or C.2. ln case of the latter, the date of mailing, as shown by
the post office stamp on the envelope, shall be considered as the date of filing of
protest. For this purpose, the envelope shall form part ofthe docket ofyour case.
D. Filing of Appeal with the Court of Tax Appeals (CTA)

If your protest is not acted upon by the Commissioner's authorized representative (i.e.,
Assistant Commissioner, Regional Director) within one hundred eighty (180) days, you
may file an appeal with the CTA within thirry (30) days after the expiration of the said
period. The 180- day period shall be reckoned from the date of filing of the protest in
case your protest is a request for reconsideration, or from the date of submission of the
required documents, which should be within the 60-day period as mentioned in C.l
hereof, in case you filed a protest for reinvestigation. Likewise, if your protest is not
acted upon by the CIR within 180 days counted from the date of filing of the protest,
you may appeal with the CTA within 30 days after the expiration of the 180-day period.
In case you choose to wait for the final decision of the BIR on the disputed assessment,
you must file your appeal with the CTA within 30 days from receipt ofthe FDDA issued
by the Assistant Commissioner/Regional Director or Authorized Higher Revenue
Official, or 30 days from receipt of the decision of the CIR. Failure on your part to
appeal to the CTA within the said period shall render the decision of the BIR as final,
executory and demandable.
By affixing your name and signature below, you acknowledge that the same has been
fully explained by the concemed Revenue Officer and a copy of this document has been
provided:
(Printed Name, with Position/Designation/Relationship if Signature of Person

Received on Behalf of the Taxpayer Named in the eLA) Acknowledging Receipt
Date of Receipt
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Annex A

Procedures in Responding to the Deficiency Tax Assessments

A. During the Discussion of Discrepancy

Any findings of discrepancies/disallowances that may lead to deficiency assessments

B. Upon Receipt of the Deficiency Tax Assessment - Preliminary Assessment

C. Filing of Administrative Protest

C.l Filing of Administrative Protest with the Regional Director/Assistant

The protest on the FLD/FAN must be addressed to Assistant

Your protest on the deficiency assessment may be a written request for

You must state in your written protest the following:

r) Date of the assessment notice;

2) The nature of the protest, whether reconsideration or reinvestigation. If it

3) Applicable law, rules and regulations orjurisprudence on which the protest

The Assistant Commissioner/Regional Director or Authorized Hieher Revenue

C.2 Filing of Administrative Protest with the Commissioner of Internal Revenue

Only inactions or adverse decisions of the Assistant Commissioner/Reeional

D. Filing of Appeal with the Court of Tax Appeals (CTA)

(Printed Name, with Position/Designation/Relationship if Signature of Person

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