Return Processing System (RPS) Assessment is not an Assessment Notice but a Collection Letter

The BIR has issued Revenue Memorandum Circular (RMC) No. 7-2023 that clarifies the notices sent to taxpayers labelled as “RPS Assessment”.

The following are the “deficiency tax return filings” that an RPS Assessment could detect:

1. RPS detects a tax return which was filed late but only the basic tax was paid and no corresponding penalties were paid.

2. This system also identifies a tax return filed with declared tax due but no corresponding payment was detected.

3. It further detects a tax return filed but only partial payments were made by the taxpayer.

When any of the three scenarios mentioned above are identified by the system, an RPS Assessment will be generated.

For large taxpayers, the appropriate notice will be sent to the taxpayer based on the RPS Assessment and shall be marked as “delinquent tax liabilities” by the BIR when it remains unsettled. The notice that will be sent by the BIR’s Large Taxpayers Documents Processing and Quality Division (LTDPQAD) shall use the term “RPS Assessment” in the notice to be sent to the large taxpayers.

For other than large taxpayers or those who are under the jurisdiction of revenue district offices, the RPS Assessments are only used as the bases in the preparation of Preliminary Collection Letter (PCL).

The RPS Assessment are not assessments resulting from the conduct of the usual BIR examination relating to the issuance of letter of authority (LOA). Since the basis of the RPS Assessment is the tax returns voluntarily filed by the taxpayer per se, the RPS Assessment must not be construes as an Assessment Notice where the taxpayer has the chance to protest or contest. The RPS Assessment is a Collection Letter that is within the civil and administrative remedies available for the BIR to enforce collection.

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RMC No. 7-2023.pdf

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