MANDATORY REQUIREMENTS FOR CLAIMS FOR CREDIT/REFUND OF TAXES ERRONEOUSLY OR ILLEGALLY RECEIVED OR COLLECTED OR PENALTIES IMPOSED WITHOUT AUTHORITY

Introduction

REVENUE MEMORANDUM CICULAR NO. 74-2024

This circular is issued to provide guidelines and prescribe the mandatory requirements for claims for credit/refund of taxes erroneously or illegally received or collected under Section 204(C) in relation to Section 229 of the Tax Code, in line with the EOPT Act of 2023. This shall not cover actions or requests for tax credit/refund under the authority and jurisdiction of the legal group.

1. GENERAL POLICIES
   1. In accordance with Section 204(C) of the Tax Code, the Commissioner of Internal Revenue may credit or refund taxes that were illegally or unlawfully obtained, as well as penalties that were imposed without authority. It may also, in his discretion, redeem or change unused stamps that have been rendered unfit for use and return their value upon proof of destruction.
   2. For claims under Section 204(C) in relation to Section 229 of the Tax Code, the taxpayer-claimant must submit the Application for Tax Credits/Refunds (BIR Form No. 1914) to the following processing office that has jurisdiction over them:
      1. The Revenue District Office; or
      2. The respective Large Taxpayers Audit Division or Large Taxpayers District Office under the Large Taxpayers Service.
   3. The authorized processing office will only accept and process applications that meet all the documentary requirements listed in the Checklist of Mandatory Requirements (Annex “A.1” of this Circular) and are filed within the two-year prescribed period after the tax or penalty is paid.
2. DOCUMENTS TO BE SUBMITTED BY THE TAXPAYER-CLAIMANT UPON FILING OF THE APPLICATION FOR TCC/REFUND
   1. The application needs to be submitted with all necessary supporting documents listed in the Checklist of Mandatory Requirements provided in Annex “A.1”. The conditions for filing claims for tax credits or refunds differ based on the type of tax that is being reimbursed or credited and the facts surrounding the taxes alleged to have been incorrectly or unlawfully obtained or collected, or penalties applied without authority. Therefore, the taxpayer-claimant may attach documents beyond the minimum requirements listed in Annex “A.1” to support the claim made.
   2. Attached to the claim is a notarized Taxpayer Attestation (Annex “A.2”) certifying the accuracy of the filed documents. Thus, the claims will be processed in accordance with the filed documents. The accounting records and books of accounts shall be presented by the taxpayer-claimant upon written request of the assigned Revenue Officers (ROs). Failure to present the documents required may result in the full or partial denial of the claim.
   3. The taxpayer-claimant must cooperate completely with the designated ROs and ensure the availability of all documents that may be needed for verification in case there are issues or findings that need further clarification, to avoid undue delay on the 180-day processing of the tax credit/refund. Failure to cooperate or submit the requested documents by the assigned ROs may result in the full or partial denial of the claim.
   4. The taxpayer-claimant shall secure Delinquency Verification Certificate (valid for 6 months) from the Collection Division under the respective Revenue Region or the Large Taxpayer Collection Enforcement Division under the Large Taxpayers Service, whichever is applicable.