REVENUE REGULATIONS NO.

12-85
SUBJECT : Procedure covering administrative protests on assessments of the
Bureau of Internal Revenue
TO : All Internal Revenue Officers and Others Concerned
Pursuant to Section 326 of the National Internal Revenue Code of 1977, as amended, in
relation to Section 4 of the same Code, the following rules and regulations implementing
the provisions of Section 319-A (now 229) of the same Code introduced by P.D. 1773
are hereby promulgated to govern the issuance of assessment notices as well as the
adjudication of administrative protests against said assessments.
POST REPORTING NOTICE
SECTION 1. Post-reporting notice. — Upon receipt of the report of findings, the
Division Chief, Revenue District Officer or Chief, Office Audit Section, as the case may
be, shall send to the taxpayer a notice for an informal conference before forwarding the
report to higher authorities for approval. The notice which is Annex "A" hereof shall be
accompanied by a summary of findings as basis for the informal conference.
In cases where the taxpayer has agreed in writing to the proposed assessment, or where
such proposed assessment has been paid, the required notice may be dispensed with.
PRE-ASSESSMENT NOTICE
SECTION 2. Notice of proposed assessment. — When the Commissioner or his duly
authorized representative finds that taxes should be assessed, he shall first notify the
taxpayer of his findings in the attached prescribed form as Annex "B" hereof. The notice
shall be made in writing and sent to the taxpayer at the address indicated in his return or
at his last known address as stated in his notice of change of address. cdasia
In cases where the taxpayer has agreed in writing to the proposed assessment, or where
such proposed assessment has been paid, the required notice may be dispensed with.
SECTION 3. Time to reply. — Venue for filing reply. —
(a) Regional Office cases — The taxpayer shall reply within a period of fifteen (15)
days from receipt of the pre-assessment notice. In meritorious cases and upon written
request of the taxpayer an extension may be granted within which to respond, but in no
case shall the extension exceed a total of ten (10) days.
The reply of the taxpayer shall be filed with the Assessment Branch of the Regional
Office which has jurisdiction over the case.
(b) National Office cases — The taxpayer shall reply within a period of fifteen (15)
days from receipt of pre-assessment notice. In meritorious cases and upon written request
the taxpayer may be given an extension within which to respond but in no case shall the
extension exceed a total of ten (10) days.
The reply of the taxpayer shall be filed with the Sector Audit Review Division or the
National Audit Review Division, as the case may be, having jurisdiction over the case.
With regard to pre-assessment notices sent by the Withholding Tax Division in
compliance with withholding tax provisions, the same shall be filed with the Withholding
Tax Division.
SECTION 4. Examination of records. — In case the taxpayer responds to the notice
within the above-prescribed period, he or his duly authorized representative shall be
allowed to examine the records of the case and to present his arguments in writing
protesting the proposed assessment. Thereafter, the Commissioner or his authorized
representative shall, of the basis of the evidence on record, decide whether or not to
approve the report as a prelude to the issuance of the corresponding assessment notice.
cdasia
ISSUANCE OF ASSESSMENT
SECTION 5. Failure to reply to pre-assessment notices; issuance of assessment. — In
the event the taxpayer fails to respond to the pre-assessment notice within the above
prescribed period, or when the Commissioner or his duly authorized representative finds
the response to be without merit, he should be informed of such fact and the report of
investigation shall be given due course.
PROTEST TO ASSESSMENT
SECTION 6. Protest. — The taxpayer may protest administratively an assessment by
filing a written request for reconsideration or reinvestigation specifying the following
particulars:
(a) Name of the taxpayer and address for the immediate past three (3) taxable year.
(b) Nature of request whether reinvestigation or reconsideration specifying newly
discovered evidence he intends to present if it is a request for investigation.
(c) The taxable periods covered.
(d) Assessment number. acd
(e) Date of receipt of assessment notice or letter of demand.
(f) Itemized statement of the findings to which the taxpayer agrees as a basis for
computing the tax due, which amount should be paid immediately upon the filing of the
protest. For this purpose, the protest shall not be deemed validly filed unless payment of
the agreed portion of the tax is paid first.
(g) The itemized schedule of the adjustments with which the taxpayer does not agree.
(h) A statement of facts and/or law in support of the protest.
A request for reconsideration or reinvestigation of an assessment shall be accompanied
by a waiver of the Statute of Limitations in favor of the government.
For the purpose of the protest herein —
(a) Request for reconsideration — refers to a plea of re-evaluation of the assessment
on the basis of existing records without need of additional evidence. It may involve both
a question of fact or of law or both.
(b) Request for reinvestigation — refers to a plea of re-evaluation of an assessment
on the basis of newly discovered or additional evidence that a taxpayer intends to present
in the reinvestigation. It may also involve a question of fact or law or both.
SECTION 7. When to file protest — A protest must be filed within thirty (30) days
from receipt of the assessment. cdtai
SECTION 8. Where to file protest — In Regional Office cases, the request for
reconsideration or reinvestigation of assessment shall be filed with the Collection Branch
of the region which has jurisdiction over the case.
For cases handled by the National Office, such request shall be filed with the Collection
Office.
SECTION 9. Finality of assessments. — If a taxpayer who receives an assessment from
the Bureau of Internal Revenue fails to file a protest within the period prescribed in
Section 7 of these regulations, the said assessment shall be final and unappealable and the
taxpayer is thereby precluded from disputing the assessment.
SECTION 10. Appeals of decision of Commissioner or Regional Director of the Court of
Tax Appeals. — Final decision issued by the Commissioner or Regional Director may be
appealed to the Court of Tax Appeals within thirty (30) days from receipt thereof,
otherwise the same shall be final and executory. cdasia
SECTION 11. Change of address. — In case of change of address, the taxpayer must
give written notice thereof to the Revenue District Officer or the district having
jurisdiction over his former legal residence and/or place of business, copy furnished the
Revenue District Officer having jurisdiction over his new legal residence or place of
business, the Revenue Computer Center and the Receivable Accounts Division, BIR,
National Office, Quezon City, and in case of failure to do so, any communication referred
to in these regulations previously sent to his former legal residence or business address as
appearing in his tax return for the period involved shall be considered valid and binding
for purposes of the period within which to reply.