Tax notes: Clarification on effect of filing of tentative tax returns-A A +A
Monday, September 9, 2013
IN ORDER to beat the tax deadline, the Bureau of Internal Revenue (BIR) has observed that some taxpayers file their income tax returns (ITR) based on the tentative financial statements with the word ‚ÄúTentative‚ÄĚ written on the face of the return.
To clarify its policy on filing tentative tax returns, the BIR issued Revenue Memorandum Circular (RMC) No. 50- 2013, which states that a ‚ÄúTentative Tax Return‚ÄĚ shall be considered as a final return unless a final amended return is filed by the concerned taxpayer. Under Section 6(A) of the Tax Code, as amended, the taxpayer has three years from the date of filing of the return, to modify, change or amend as long as no electronic Letter of Authority or any other notice of audit is received during that period.
Once a notice of audit is received, taxpayers are barred from making amendments to the tentative tax returns previously filed.
In RMC No. 50-2013, the BIR has further encouraged the taxpayers to make sure to file amended tax returns and finalize its audited financial statements, notwithstanding that the filing of amended tax returns has the effect of extending the three-year period within which the bureau is allowed to examine the books of the taxpayers.
(Source: Punongbayan & Araullo)
Published in the Sun.Star Cebu newspaper on September 10, 2013.