u/Appropriate_Agent416

Hi everyone, I’m hoping to get insight from those who’ve dealt with BIR open cases/penalties.

Background:

• Non-VAT business
• 3 branches:
  • Branch 1— no operations since 2020 (pandemic)
  • Branch 2 — no operations since 2020
  • Branch 3— operated 2020–2025 (managed by ex-partner)
• I did NOT formally close/suspend the inactive branches

Issue: I received notices from the Bureau of Internal Revenue RDO regarding BIR Form 1601EQ (withholding tax):

• Multiple filings in 2019–2020 were submitted with tax due but no payment
• Sample amounts: ₱750, ₱1,250, ₱2,240, etc.

What I understand so far:

• Even with no operations, since returns were filed with amounts, BIR treats them as payable
• Penalties include 25% surcharge + 12% annual interest + compromise penalties
• I may need to request recomputation and penalty reduction

My questions:

1. Has anyone successfully reduced or waived penalties for old 1601EQ cases (especially pandemic-related closure)?
2. For branches with no operations since 2020, what documents did BIR actually accept as proof? (I may only have limited records)
3. If there were no employees/suppliers, is it possible to reclassify those filings to zero or is that no longer allowed once filed?
4. What’s a realistic settlement range for cases like this? (I’m estimating somewhere around ₱₱70-100K per Branch total but not sure if that’s accurate)
5. Any tips when talking to the RDO officer to avoid unnecessary penalties?

Goal: I plan to go to BIR and settle everything properly, but I want to be prepared and avoid overpaying due to lack of knowledge.

Any advice or real experiences would really help. Thanks!