BIR Addresses Concerns on Filing of Tax Returns and Early Tax Payments Before the Extended Deadline
The Bureau of Internal Revenue (BIR) releases Revenue Memorandum Circular (RMC) No. 37-2020, relative to Revenue Regulations (RR) No. 7-2020 and pursuant to Republic Act (RA) No. 11469, otherwise known as the “Bayanihan to Heal as One Act”, addressing the concerns of taxpayers on possible imposition of additional penalties or non-recoveries of taxes paid if they file and pay taxes prior to the implemented extension of tax deadlines but have not yet accomplished the financial statements and/or returns.
The following are the clarifications released for the guidance of taxpayers concerned:
- Those with filed tax returns within the period of the original deadline can amend the returns on or before the extended due date. Any additional tax out of the amendment will not be subjected to penalties, provided that it is addressed not later than the extended deadline.
- Those with amended returns that will result in overpayment of paid taxes can opt to either use it as credit against tax due to a similar type of tax for returns of succeeding periods or file for refund claim.
Due to the unavailability of the January 2018 version of the BIR Form 1701 [Annual Income Tax Return for Individuals (including Mixed Income Earner), Estates and Trusts], BIR reminds the Electronic Filing and Payment System (eFPS) filers to utilize the offline eBIRForms Package 7.6, as stated under the RMC 16-2020. Payment for the income tax liability can be carried out manually or through online payment.