REVENUE REGULATIONS NO. 12-85 SUBJECT : Procedure covering administrative protests on assessments of the Bureau of Internal RevenueTO : All Internal Revenue Officers and Others ConcernedPursuant 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 NOTICESECTION 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 NOTICESECTION 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. cdasiaIn 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. cdasiaISSUANCE OF ASSESSMENTSECTION 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 ASSESSMENTSECTION 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. cdtaiSECTION 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. cdasiaSECTION 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.