Surcharge, Interest, and Compromise Penalty on Amended Returns

March 15, 2018BIR MEMORANDUM NO. 016-2018TO:The Deputy Commissioner  Operations Group   SUBJECT:Surcharge, Interest, and Compromise Penalty on Amended Returns This refers to the Reference Slip dated August 17, 2017, requesting for the resolution of issues on surcharge, interest, and compromise penalty on amended returns.Background:On May 26, 2017, Acct Five sent an e-mail to the Presidential Complaint Center, which was referred to the Office of the Deputy Commissioner-Operations Group, under PCC Code No. GE-FCG-06-14-2017-020. In the said e-mail, Acct Five mentioned about the inconsistencies in the imposition of penalties and interest for filing of an amended tax return. There are Revenue District Offices (RDOs) that impose surcharge, interest and compromise penalty, while other RDOs impose only interest. Hence, this request.In reply, please be informed that Sections 248 and 249 (A) of the National Internal Revenue Code of 1997, as amended, states that: HTcADC"SEC. 248.    Civil Penalties. — (A)    There shall be imposed, in addition to the tax required to be paid, a penalty equivalent to twenty-five percent (25%) of the amount due, in the following cases:(1)    Failure...