NARRATIVE REPORT
Name: Atienza, Kimberly Claire P.
Section: BSMA - 4205
Topic: BIR Form 1700
I.
Introduction
In the Philippines, persons who are self-employed, professionals, and those with
mixed incomes are required to file a Form 1700 tax return in order to record their income
and pay the income tax that is associated with that income. This form is for those who
make their income only from their business or profession, or who have revenue from both
their business or profession and other sources, such as compensation. Taxpayers must
fill up and file their tax forms on time to avoid penalties.
The following is a list of some of the specific information that must be included in
the BIR Form 1700: First, the taxpayer must submit their name, TIN, address, and contact
information here. The taxpayer's tax status—single, married, or head of household—is
also needed. The taxpayer must disclose if they are exempt from income tax under the
National Internal Revenue Code (NIRC) or any specific statute. Second, payers must
report their spouse's income, deductions, and credits. This information determines the
taxpayer's overall tax liability and eligibility for tax exemptions and deductions. Third, tax
Due Based on income, deductions, and tax credits, the taxpayer calculates their overall
tax due. The taxpayer enters the total income tax due or overpayment to calculate their
tax payment or refund.Fourth, taxpayers required to declare their tax payment details,
including mode, amount, and date. Fifth, Tax Calculation Taxpayers must calculate their
tax due or overpayment here. It includes a worksheet to calculate tax liabilities based on
income, deductions, and credits. The taxpayer must also declare any fines or interests
for late tax payments. And lastly, Schedule A of BIR Form 1700 is for taxpayers with gross
compensation income and tax withheld. This schedule helps taxpayers calculate their
overall tax due by calculating employer tax withholding.
The taxpayer can ensure they pay the right amount of tax depending on their gross
compensation income and tax withheld by filling out this schedule correctly. Not declaring
the exact income and tax withheld may result in BIR penalties and interest. The Internal
Revenue Service (IRS) requires that Form 1700 be submitted by the taxpayer on or before
April 15 of the year that follows the taxable year.
For instance, if the taxable year runs from January 1 to December 31 of the next
year (2022), the deadline for submitting Form 1700 with the Internal Revenue Service is
on or before April 15 of the following year (2023). It is essential to keep in mind that
taxpayers are required to submit their tax returns before the due date in order to avoid
incurring penalties and interest charges from the BIR.
II.
Knowledge/Learning Acquired
Taxpayers can enhance their record-keeping, financial literacy, planning, and
organizational abilities by going through the process of filling out this tax form. In addition,
they can obtain useful insights about their tax obligations, deductions, and exemptions.
It is a must for students to keep track of their income and expenses throughout the
year in order to fill out BIR Form 1700. This helps students develop their record-keeping
abilities because it forces them to do so. Students can become more financially literate
and better equipped to handle their own finances by understanding the various sources
of income and deductions that are recorded on BIR Form 1700. This understanding can
help students understand the numerous deductions that are available to them. The
process of filling out BIR Form 1700 can also help students develop skills in planning and
organization, since they need to keep track of deadlines and acquire all of the essential
documents and information. This can help students become more successful in their
future endeavors. Completing BIR Form 1700 can assist taxpayers become more aware
of their tax duties and the repercussions of not complying with those obligations.
By completing BIR Form 1700, taxpayers can become more familiar with tax laws
and regulations, which can be beneficial in future tax filings. In addition, taxpayers can
have a better understanding of how tax laws and regulations affect them. Because BIR
Form 1700 grants various deductions and exemptions, taxpayers who have a solid
understanding of these provisions can more effectively plan their finances in a manner
that reduces the amount of tax they owe. Taxpayers are required to give accurate
information while filling out BIR Form 1700. This requirement is meant to help taxpayers
avoid making mistakes and potential legal problems in the future.
When completing BIR Form 1700, taxpayers may face a number of obstacles,
some of which include the following: First, calculating taxable income can be difficult for
certain people, particularly those who are self-employed and may have many sources of
income. This is especially the case for those who are married.Second, it's possible that
not all taxpayers have the required knowledge and comprehension of tax laws and
regulations, which can lead to errors when filling out the form.And lastly, it's possible that
some taxpayers will run across technological issues when they try to file their taxes online
or using the eBIRForms system.
Filling out the BIR Form 1700 can be a trying yet ultimately gratifying experience
for taxpayers who are working professionals or students who are doing their taxes for the
first time. Taxpayers have the opportunity to improve their knowledge and abilities in
areas such as tax compliance, financial literacy, and financial planning by going through
this procedure. However, it is essential to keep in mind that the process of filing can be
complicated and time-consuming. Possible obstacles include the difficulty of
accumulating the necessary information, navigating the tax rules and regulations, and
ensuring that the return is accurate and in conformity with the law.
The advantages of completing BIR Form 1700 can't be ignored despite the
difficulties that are involved in doing so. Taxpayers and professionals can be of more
assistance to their customers in managing their finances, decreasing their tax liability, and
avoiding legal complications if they become more knowledgeable about the rules and
regulations pertaining to taxes. In general, the procedure for completing BIR Form 1700
should not be disregarded because it is an important part of maintaining tax compliance
and being responsible for one's financial situation.
III.
Conclusion
In conclusion, the process of completing BIR Form 1700 can be a beneficial
learning experience for taxpayers who are students as well as working professionals who
are doing their taxes. Taxpayers can gain key skills related to record-keeping, financial
literacy, and planning by going through the steps of gathering the relevant information,
calculating their tax burden, and reporting their income and deductions. By going through
these steps, taxpayers can become more aware of their tax duties and develop important
skills.
The process of being more familiar with tax laws and regulations, as well as the
different forms and documents that are required for tax compliance, can be especially
significant for people who work in the field of finance or accounting. This process also
allows them to become more familiar with the many forms and documents that are
required for tax compliance. Professionals can be of more assistance to their customers
in managing their finances and decreasing their tax liabilities if they have a more in-depth
awareness of the rules and regulations pertaining to taxes.
When completing BIR Form 1700, a taxpayer has the possibility of being
confronted with a number of repercussions. If the taxpayer does not submit their taxes or
declare their income appropriately, they run the risk of incurring penalties and fines, which
is one of the most significant ramifications. Tax compliance is taken very seriously by the
Bureau of Internal Revenue (BIR), and any errors or omissions in tax files can result in
hefty penalties, fines, and legal action being taken against the taxpayer.
There is also the possibility that a taxpayer will fail to take advantage of deductions
and exemptions to which they are entitled. This is still another implication. It is possible
for a taxpayer to end up paying more tax than they need to if they are not aware of all of
the deductions and exemptions that are available to them. This can be a strain financially
for the taxpayer.
In addition, completing BIR Form 1700 can be a difficult and time-consuming
process, which may lead to frustration and stress for certain taxpayers. Gathering the
necessary information, which may include specifics regarding income, deductions, and
taxes withheld, is a necessary step in the process, but it can be challenging and unclear
to figure out how to proceed.
Last but not least, there is the possibility of having sensitive personal and financial
information stolen or used fraudulently if it is not adequately protected during the process
of submitting tax returns. Taxpayers should take efforts to protect their information, such
as using secure internet portals and avoiding exchanging sensitive information over email
or other unsecured methods. These are just two examples.
When taken as a whole, the implications of improperly completing BIR Form 1700
can be serious. This is true not only in terms of the potential penalties and fines for noncompliance, but also in terms of the amount of time and effort that is required to finish the
form correctly. Taxpayers should take great care to disclose their income and deductions
in an appropriate manner, and they should seek the assistance of a tax professional if
they have any questions regarding the tax filing process.
IV.
Recommendation
Taxpayers who are completing BIR Form 1700 should keep the following
recommendations, hints, and guidance in mind while they work: Maintain your order:
Before beginning to fill out the form, it is important to gather all of the required documents
and information. This can assist save time and ensure accuracy at the same time. Consult
with a trained professional: If there is any part of the filing procedure about which you are
unsure, you should see a tax professional for guidance. They can guide you through the
maze of complicated tax laws and regulations and guarantee that you are in compliance
with all of the requirements. Check your work twice to ensure accuracy: Verify that all of
the information has been input properly, and check the accuracy of all of the
computations. Even the smallest of mistakes might result in larger consequences. Use all
of the deductions and exemptions to which you are entitled: It is imperative that you make
full use of all of the deductions and exemptions to which you are entitled. You may be
able to reduce the amount of tax you owe and save money as a result of this. Make sure
that your information is secure: Your personal and financial information can be kept
private and secure if you make use of encrypted web portals and refrain from transmitting
sensitive information via unprotected channels. Stay current with your filings: Make sure
that your tax return is filed on time so that you can avoid incurring any fines or interest
charges. Maintain a record of: In case of an audit or any other type of legal issue, you
should save copies of your tax return as well as other papers that support it for at least
three years.
Taxpayers can guarantee that they are in compliance with tax rules and
regulations, minimize their tax liability, and avoid any penalties and fines by adhering to
the guidelines, tips, and advice that have been provided.