Tax Notes: BIR Forms for compromise settlement and abatement of penalties

SECTION 204 of the Tax Code provides two remedies to the taxpayer: compromise and abatement.

Compromise involves the payment of a certain percentage of the tax liability while abatement means cancellation so there will be no payment of the tax liability.

Earlier this year, the Bureau of Internal Revenue (BIR) issued Revenue Memorandum Order (RMO) No. 03-2017 prescribing the format for the Certificate of Availment and Approval and Notice of Denial of the application for compromise settlement and/or abatement of penalties.

Relative to the implementation of the above-mentioned RMO, the BIR issued Revenue Memorandum Circular (RMC) No. 36-2017 authorizing the use of the following accountable forms: BIR Form 2342, Form Name: Certificate of Availment – Compromise Settlement (Annex “A”); BIR Form 2343, Form Name: Certificate of Availment – Abatement of Penalties (Annex “B”); BIR Form 0427, Form Name: Notice of Denial – Application for Compromise Settlement (Annex “C”); and BIR Form 0428, Form Name: Notice of Denial – Application for Abatement of Penalties (Annex “D”).

The accountable forms shall be accomplished in three copies and to be distributed to the taxpayer (original), issuing office (duplicate), and attached to the case docket (triplicate).

Please be guided accordingly. Source: P&A Grant Thornton
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