NON-IMPOSITION OF PENALTIES FOR FILING OF AMENDED INCOME TAX RETURN AND OTHER TAX RETURNS BEFORE THE EXTENDED DEADLINE
By Atty. Jonathan R. De Guzman
On 06 April 2020, The Bureau of Internal Revenue issued Revenue Memorandum Circular No. 37-2020 (RMC No. 37-2020) implementing additional guidelines on the filing and payment of tax returns without the imposition of penalties.
The RMC No. 37-2020 addresses the concerns of the taxpayers who intend to file and pay their tax returns within the original deadline or prior to the extended deadline but have not yet finalized their financial statement or returns. They feared that should they do so, the same might result in the imposition of additional penalties or non-recovery of taxes paid.
Hence, the following guidelines:
Taxpayers who have already filed their tax returns within the original deadline or at anytime before the extended deadline can amend their tax returns at anytime before the extended deadline or due date.
- In case the amended tax return resulted to underpayment of taxes due, the amendment will not be subject to the corresponding taxes, ie., surcharge, interest and penalties, if the same was made before the extended deadline as provided for by the existing rules.
- In case the amended tax return resulted to overpayment of taxes due, the taxpayer either:
- carry over the overpaid taxes as credit agains the tax due for the same tax type for the succeeding taxable return period; or
- file for tax refund.
Further, since BIR Form 1701 is not yet available in Electronic Filing and Payment Systems (eFPS), Individuals (including Mixed Income Earner), Estates and Trusts, Taxpayers shall use the Offline EBIRForms Package Version 7.6 to file the said tax return. Payment shall be made either manual payment (ie, bank, authorized agents) or online payment as prescribed by the existing rules and regulation.
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