Protesting Internal Revenue Taxes

If you've read this article, then here's another piece of information you might find useful as well. Remember, you have the right to be protected a wrong collection of taxes. These are the steps:

1.) The BIR conducts a tax audit

2.) It sends you a Pre-Assessment Notice (PAN)

3.) You're given an opportunity to explain why the assessment should be cancelled, amended or reduced

4.) In case of failure to do so, the BIR will send you a Final Assessment Notice

5.) You have 30 days from receipt of the FAN to file a written protest, either a request for reconsideration or reinvestigation (there is no precise form for this; all you need to do is write a letter to the CIR with the supporting documents attached)

6.) Within 60 days from the filing of your protest, submit your relevant supporting documents 

7.) The CIR has 180 days from the date the documents are submitted to decide on your protest case

8.) If the ruling isn't favorable (or if he doesn't act on the protest) you have 30 days from the date of receipt of the decision -or, if he doesn't act, 30 days from the end of the 180-day period- to file a petition for review with the CTA in division

Note: if you want to wait for the CIR to decide even after the 180-day period is over, you can file your protest within 30 days from the date the CIR gives an unfavorable ruling. Also, the remedies are mutually exclusive. If you go to the CTA, you can't wait for the CIR to make a decision and vice-versa.

9.) If the CTA's ruling isn't favorable, file a motion for reconsideration before the same division within 15 days from receipt of the decision

10.) If still unfavorable, file a petition for review with the CTA en banc within 15 days from receipt of the decision

11.) If still unfavorable, go to the Supreme Court on Rule 45 certiorari within 15 days from receipt of the CTA decision

If you ignore the FAN and won't file a protest within 30 days from receipt of it, or if you don't appeal to the CTA within 30 days from receipt of the CIR's decision, the assessment becomes final and executory and you can't appeal from it any more.