Subject:        WAIVER OF PENALTIES FOR SELF-EMPLOYED
                    INDIVIDUALS AND PROFESSIONALS WHO
                    FAILED TO SUBMIT THEIR FIRST QUARTER
                    INCOME TAX RETURNS FOR 1998 ON APRIL
                    15, 1998, BUT NONETHELESS FILED THEIR
                    RETURN ON OR BEFORE MAY 15, 1998.

T  o    :     ALL INTERNAL REVENUE OFFICERS AND
                    OTHERS CONCERNED.

Section 4 Addendum to Section 292 of the Tax Reform Act of 1997 [RA 8424] has directed the Secretary of Finance, upon recommendation of the Commissioner of Internal Revenue, to promulgate and publish the implementing rules and regulations thereof, and the fact that the same have not yet been issued and published, Revenue Regulations No. 7-93 prescribing May 15 as the deadline in filing the First Quarter Return shall be considered valid.  Hence, the imposition of the administrative penalties, i.e., surcharge, interest, or other penalties, for failure to file the adverted return on or before the said date, is hereby waived.

As such, all Accredited Agent Banks [AABs] and other Collection Agents are hereby directed to accept without surcharge, interest, or other penalties, the First Quarter Income Tax Return of the subject taxpayers filed on or before May 15, 1998.

Please be guided accordingly.

LIWAYWAY VINZONS-CHATO
Commissioner of Internal Revenue

Date issued:  15 May 1998