In the event that the taxpayer pays his tax liability prior to the sale of the distrained property, it is the duty of the Revenue Officer to release the property to the taxpayer. The distrained goods, chattels, effects, etc. shall be returned to the taxpayer if the entire tax liability, including the increments incident to delinquency, the expenses in the transportation and preservation of the seized/distrained properties and the expenses of the sale are paid by the taxpayer or anyone in his behalf any time prior to the consummation of the sale. If the taxpayer settles his tax liability after the Notice of Sale has already been published in the newspaper of general circulation, the cost of the publication shall be refunded by the taxpayer to the BIR.
The expenses chargeable upon each seizure and sale shall embrace only the actual expenses of seizure, preservation of the property pending the sale and the cost of sale. No charge shall be imposed for the services of any internal revenue officer.
Procedures in the Release of Distrained Property to the Taxpayer
The Revenue Officer/Seizure Agent shall:
- Receive copy of the proof of payment (validated BIR Form No. 0605/Confirmation receipt/ROR made by the taxpayer prior to the sale and confirm validity of such payment in the ITS-CBR;
- Require the taxpayer to reimburse all expenses attendant to seizure/preservation and maintenance of distrained property as well as other expenses incurred prior to the sale thereof;
- Prepare A Memorandum of Release of Distrained Property (Annex 300-1.50) containing the list of the seized items and forward the same to the authorized signatory for signature;
- Require the taxpayer to acknowledge receipt of the Memorandum returning his property by affixing his/her signature in both copies of the Memorandum;
- Require the taxpayer to physically remove/retrieve the distrained properties from BIR custody and/or turn-over immediately to the taxpayer the stock certificates. Bonds and other readily movable items;
- Attach the original copy of the Memorandum to the docket of the case;
- Prepare a memorandum to the RDO/LTDO Chief, copy furnished the Regional Collection Division/Chief, LTCED, for the cancellation of the case in the General Control Ledger (GCL);
- Transmit the docket to the Regional Administrative Division/NO-Records Division for safekeeping and future reference; and
- Prepare and submit Monthly GCL and Monthly Updates of Delinquent Accounts on the 10th day of the following month to CED, copy furnished the Regional Collection Division/LTCED (Refer to CM 306-Monitoring of ARs/DAs/ CM 306-Monitoring Warrant Enforcement).