September 12, 1991
REVENUE AUDIT MEMORANDUM ORDER NO. 4-91
SUBJECT : Audit of Income Tax Returns of Non-resident Citizens
The following guidelines shall govern the audit of income tax returns of non-resident citizens. The International Tax Affairs Division and all Assessment Branches in the regional offices, in line with the delegation of the audit of these returns pursuant to RMO No. 10-91, will adopt these procedures and forms in the discharge of the audit function.
I. INITIAL VERIFICATION
1. Perform an initial analysis of the Income Tax Returns (BIR Form No. 1701C) selected for audit pursuant to the selective audit procedures prescribed in RMO No. 36-90. Verify completeness of information in the return and of required supporting documents and check mathematical accuracy.
2. Send communication to the taxpayer regarding information requirements. (Refer to Annex A and B for sample communication forms on taxable and refundable cases, respectively.)
3. Arrange a meeting with the taxpayer to facilitate completion of the case. (Scheduled meetings must be strictly monitored to impress upon the taxpayer the importance of the case at hand.)...
