Bankrupt na nga eh! Tapos Tax Penalty pa.

2010 po ng ma-bankrupt ang computer shop sa dami ng nagsulputang piso net na hindi naman nagbabayad ng tax. Ang problema po, nung nagpa-file ng bankruptcy si Mrs., sobrang daming hinihinge ng BIR at nagkasakit tuloy si Mrs.. In short hindi nya po na finalize yung closure ng business. Ngayon, merong dumating na sulat galing BIR asking for compliance, i.e., tax payments from the year we stopped operating the business to this date. 94 open Stop Filer Cases po.

Any advise, suggestion on how to go about it will be greatly appreciated. Maraming salamat po.

Well. That's why an ending of a business need to be done proper to avoid geting such problems. Such include unregister at BIR.
1. So unregister proper now.

First step in trying to reduce/eliminate what BIR has demanded. .
In WRITING to BIR:
2. Explain why there haven't been any business and by that no income to pay tax at. Attach copies showing it's bankrupt.
3. By the tax forms weren't filled in time, BIR has right to demand punishment fees for that. Have they demanded any?
If Yes - APPLY to not need to pay that including telling why it wasn't done.
If No - DON'T write anything about it, just hope they don't think of adding such If they demand it later, THEN do as said in the "Yes" alternative.

thanks for the advise. they sent a letter already, with all the open cases attached. meaning, the months and years my wife did not file any papers. wtf, they are asking P1,000.00 per open case. amounting to P128,000.00!!!!! As you said, pakiusap, makaawa, etc. to reduce. In total, na reduce sa P28,000.00. Still don't have that much money. Mabuti na lang ngayon mas madali ng makiusap, di tulad noong araw. I need not say more why nagkasakit si mrs. dahil sa mga hinayupak na to. Sa bangko naman babayaran, kaya hindi na masama loob ko. at least, sa government talaga at hindi sa bulsa ng iba. Payag naman hulugan, pay when able. and to avoid further penalties, must continue filing monthly form 2551M and 1701 until such time ma-fully paid yung penalties and then finally close the business properly.  maraming salamat po sa reply

Yes it's ridicilous BIR demand forms every MONTH for small businesses! Once a YEAR would be fair...

You need to do a proper closing of the business. I don't know how it's done when it's bankruptcy case. Ask BIR what they want when you have bankruptcy documents.
After BIR confirm it's unregistered , you don't need to fill tax forms for that business anymore (except I guess a summary for the running year). Ask BIR to avoid any odd suprises.

one more big problem is that we lost all our records during Undoy. I guess, I will have to file those forms until the day I present to them my wife's death certificate (the business is under her name), or they close it themselves. A CPA advised me, just continue on filing, without paying by citing PT010 as ATC. BIR is so unbelievable when they are letting those "big fishes" get away with it. Anyway, I am trying to work out that it be unregistered. Suwerte pa yung mga walang business permit na PISO NET, ni singko walang binabayarang buwis. Yung mga nagnenegosyo ng tamang paraan, sumusunod sa batas at nagbabayad ng buwis, at ng malugi at matalo sa mga illegal na negosyo, yun pa ang mga ginigipit. Talaga naman, oo. Pisting buhay! Another advise I got was not to file bankruptcy, dahil mas maraming papeles daw kailangan. Mas mabuti pa raw yung "Ayaw ko na magnegosyo! Period!", wala na daw silang magagawa kapag ka ganun. I just do not know how true that is.

Mech12358 wrote:one more big problem is that we lost all our records during Undoy. I guess, I will have to file those forms until the day I present to them my wife's death certificate (the business is under her name), or they close it themselves. A CPA advised me, just continue on filing, without paying by citing PT010 as ATC. BIR is so unbelievable when they are letting those "big fishes" get away with it. Anyway, I am trying to work out that it be unregistered. Suwerte pa yung mga walang business permit na PISO NET, ni singko walang binabayarang buwis. Yung mga nagnenegosyo ng tamang paraan, sumusunod sa batas at nagbabayad ng buwis, at ng malugi at matalo sa mga illegal na negosyo, yun pa ang mga ginigipit. Talaga naman, oo. Pisting buhay! Another advise I got was not to file bankruptcy, dahil mas maraming papeles daw kailangan. Mas mabuti pa raw yung "Ayaw ko na magnegosyo! Period!", wala na daw silang magagawa kapag ka ganun. I just do not know how true that is.

Oh. I understood it as it's FORMALY bankrupt. Isn't it?

Is your wife alive or dead?
If dead, then I suppouse it's enough to prove that and fill the form

If alive and can sign - Here you can read detailed info how to unregister a business
http://businesstips.ph/how-to-close-a-business-in-the-philippines/

It is formally bankrupt! Since 2007 (as opposed to what I originally said on my original post). All records gone and destroyed in 2009, thanks to Ondoy. Wife is still alive of course. I am preparing to go to BIR, have all forms filled out and ready for submission: 2051M, 1701, 0605, 1905. And preparing the money to pay for penalties (fortunately reduced (by about 60%) to a lot of "pakiusap and pagmamakaawa". (Walang lagay-lagay, ipapako ko sa krus ang sinumang manghingi ng lagay at isusumbong sa palasyo). If I cannot formally unregister, close or cancel TIN, due to lack of documentations (thanks again to Ondoy), then, the course to take is to continuously file. Of course, P500.00 yearly for RF (registration fee).  Next is, kung hindi ako ang mauna, at wife ang mauna, then wife's death certificate will deliver the final nail and that would be it. Please do correct me if I am wrong. BTW, thank you very very much for the "walang sawang" pag reply. At least merong nahihingahan ng sama ng loob. Meron ka ngang manugang na CPA, wala namang paki at hindi mo mahingian ng tulong or advise, pagkatapos mong patirahin at palamunin sa bahay ng ilang taon at umalis, kasama anak ko siempre at nagsarili. Langhiya, pati tuloy 'to nahukay. Pasensiya na.

Will give you an update within this week, as I plan to finish everything asap. Para wala ng iisipin, maka-move on, and have peace of mind. So I can enjoy my remaining years, kahit papaano. Maraming maraming salamat po.

Why death certificate if your wife is alive??
By she is alive, she can sign the unregistration.

If necesary ask the institution, which decided the bankruptcy, to get a new document saying it.

Lunkan wrote:Why death certificate if your wife is alive??  
By she is alive, she can sign the unregistration.

If necesary ask the institution, which decided the bankruptcy, to get a new document saying it.

what i am saying is that, i can continue on the filing of the forms to avoid penalties. and just in case, she dies (i hope of course not), then, that will be the end of it. i just need to submit the death certificate. this is of course, if BIR does not allow me to close and cancel the TIN due to lack of documents that were lost during Ondoy.

at the moment, she is not in the country. and of course, we wouldn't want any problem when she returns and goes back abroad again. just that.

Mech12358 wrote: what i am saying is that, i can continue on the filing of the forms to avoid penalties. and just in case, she dies (i hope of course not), then, that will be the end of it. i just need to submit the death certificate.

I see.

Mech12358 wrote: this is of course, if BIR does not allow me to close and cancel the TIN due to lack of documents that were lost during Ondoy.

But what documents are that needed to unregister???

At BIR I suppouse just fill the form telling you WANT to end it...

Mech12358 wrote: at the moment, she is not in the country. and of course, we wouldn't want any problem when she returns and goes back abroad again. just that.

I see. That complicate the signing of the UNREGISTER form.

How do you solve the signing of the monthly TAX forms?

there is a checklist of requirements that are needed to be submitted to proceed with the closure:
1. BIR form 1905
2. Death Certificate in case of death of an individual (meaning the one to whom the TIN was registered
3. List of ending inventory of goods, supplies, including capital goods
4. Inventory of unused sales invoices/official receipts (SI/OR)
5. Unused sales invoices/oficial receipts and all other unutilized forms (e.g. vouchers, debit/credit memos, delivery receipts, purchase orders, etc.) including business notices and permits as well as COR shall be subject for destructioon to be witnessed by BIR personnel and officials.

as for the monthly tax form, it is done on-line now. download eBIRForms.exe from their website, install, fill-out form and submit on-line specially if there is no payment. BIR replies to your e-mail. you must print the form you submitted on-line and the reply of BIR to your e-mail and compile them. That is to keep a record, just in case some BIR surprises comes up again.(for others, if there is a payment, the reply in the e-mail comes with a sort of a voucher, so you bring your printed form plus the e-mail reply to the bank and pay.) no need to go to BIR.

as for the signee, you just have to present an authorization or some sort of special power of attorney to conduct the business of authorization. since I am the husband, they are not asking me for any. they just simply recognizes me as the authorized representative. curious though, they should still ask me for some papers of authorization, but they are not.

1. No problem
2. Not dead.
3 + 4 Not relevant because nothing left when its bankrupty...
5 I don't know if that's needed at bankruptcy. Didn't the bankruptcy process take care of that too?

So only 1, 5 ? and bankruptcy document.