Do you think taxpayers need to know the importance of Modes of Payment of Internal Revenue Taxes Through Authorized Agent Banks (AABs)? In this regard, the bureau has issued Revenue Regulations (RR) No. 16-2002 that refers the Modes of and Procedure of Internal Revenue Taxes Through Agent Banks Amending RR No. 4-97, as amended by RR No. 6-98.
The Modes of Payment of Internal Revenue Taxes Through AABs are stated in these regulations to read as follows:
SEC. 3. MODES OF PAYMENT TO AABs - Aside from the electronic payment system currently used by some taxpayers in paying their BIR taxes, the rest shall pay their tax liabilities through any of the following modes: a) over-the-counter cash payments; b) bank debit system; or c) check payment system.
a) "Over-the-counter cash payment" refers to payment of tax liabilities to authorized agent bank in the currencies (paper bills or coins) that are legal tender in the Philippines. The maximum amount allowed per tax payment shall not exceed ten thousand pesos (P10,000.00)
b) "Bank debit system" refers to the system whereby a taxpayer, through a bank debit memo/advice, authorizes withdrawals from his/its existing bank accounts for payment of tax liabilities.
The bank debit system mode is allowed only if the taxpayer has a bank account with the AAB branch where he/it intends to file and pay his/its tax return/form/declaration, provided said AAB branch is within the jurisdiction of the BIR Revenue District Office (RDO) / Large Taxpayers District Office (LTDO) where the tax payment is due and payable.
c) "Checks" refers to a bill of exchange or Order Instrument drawn on a bank payable on demand.
In the issuance and accomplishment of checks for the payment of internal revenue taxes, as illustrated below, the taxpayer shall indicate in the space provided for "PAY TO THE ORDER OF" the following data: (1) presenting/collecting bank or the bank where the payment is to be coursed and (2) FAO (For the Account Of) Bureau of Internal Revenue as payee; and under the "ACCOUNT NAME" the taxpayer identification number (TIN).
(Below is a sample of a tax check payment where the drawee bank and presenting bank are different from each other.)
(Below is sample of check tax payment drawn from and presented to the same bank.)
The following checks are, however, not acceptable as check payments for internal revenue taxes:
1. Accommodation checks - checks issued or drawn by a party other than the taxpayer making the payment;
2. Second endorsed checks - checks issued to the taxpayer as payee who indorses the same as payment for taxes;
3. Stale checks - checks dated more than six (6) months prior to presentation to the authorized agent bank;
4. Postdated checks - checks dated a day or several days after the date of presentation to the authorized agent bank;
5. Unsigned checks - checks with no signature of the drawer;
6. Checks with alterations/erasures.
AABs accepting checks for the payment of BIR taxes and other charges must see to it that the check covers one tax type for one return period only. Moreover, AABs must strictly comply with the systems and procedures for the reception, processing, clearing and accounting of the checks to be prescribed under a separate regulation.
Second indorsement of checks which are payable to the Bureau of Internal Revenue or Commissioner of Internal revenue is absolutely prohibited.
Please refer https://www.bir.gov.ph/images/bir_files/old_files/pdf/2007rr16_02.pdf of the full text of RR No. 16-2002.
