I. Why 1601-E and 1604-E “open cases” happen

An “open case” is a BIR compliance flag in the RDO’s Case Monitoring/Returns monitoring records indicating that—based on what you are registered to file—the BIR system shows something missing or inconsistent, typically:

no return filed for a period;
return filed but no payment posted (or payment posted but not matched);
late filing/payment with penalties still unpaid (in many RDO workflows, the case stays “open” until penalties are settled and the case is manually closed);
missing required attachments/submissions (common for alphalists);
wrong form / wrong period / wrong TIN/branch causing mismatching; or
registration mismatch (you are registered for 1601-E/1604-E even if you no longer have withholding obligations).

For withholding taxes, open cases are common because compliance is multi-layered: (1) remit and file periodic returns, (2) issue withholding certificates to payees, and (3) submit alphalists and annual summaries that must reconcile.

II. What 1601-E and 1604-E are (and how they relate)

A. 1601-E (Expanded Withholding Tax remittance return)

1601-E is associated with expanded/creditable withholding tax (EWT)—tax withheld from certain income payments (e.g., professional fees, rentals, supplier payments subject to EWT) and remitted by the withholding agent.

Important: The BIR has updated withholding forms and filing frequencies over time (for some years, the periodic remittance may appear under different form numbers or quarterly structures). Open cases for “1601-E” often refer to older periods when 1601-E was the periodic return, or to taxpayers still registered under that tax type.

B. 1604-E (Annual Information Return for EWT)

1604-E is the annual reconciliation / information return summarizing income payments subjected to EWT and the taxes withheld and remitted during the year. It typically ties together:

totals of periodic remittances, and
the annual alphalist of payees (and related schedules).

C. The reconciliation triangle (what BIR expects to match)

For a given year, BIR expects consistency among:

Periodic withholding tax returns/remittances (e.g., 1601-E and/or successor periodic/quarterly EWT forms);
1604-E annual totals; and
alphalists and certificates issued to payees (e.g., withholding certificates like BIR Form 2307 in EWT contexts) and submitted lists of payees.

When these do not align, the taxpayer can end up with open cases, or later audit exposure.

III. Why open cases matter (legal and practical consequences)

Open cases can prevent or delay:

business closure / cancellation of registration (BIR generally requires “no open cases” to process closure);
issuance of certain clearances (depending on context);
smoother processing of registrations/updates; and
clean compliance standing in future audits.

For withholding taxes, noncompliance can also trigger:

civil penalties (surcharge, interest, compromise);
possible disallowance issues in audits (failure to properly withhold/remit can affect deductibility of related expenses under tax rules in practice); and
potential criminal exposure in serious cases of non-filing/non-remittance under the Tax Code provisions on violations (fact-specific and typically pursued in aggravated situations).

IV. Common causes of open cases specific to 1601-E and 1604-E

A. Registration-related causes

You are still registered as a withholding agent for EWT
- Even if you had “no transactions,” BIR systems will still expect returns unless the tax type is removed or business is properly closed.
Wrong tax types in your BIR Form 2303 (COR)
- Example: 1601-E is still on your COR although you no longer make payments subject to EWT.

B. Filing-related causes (most common)

Non-filing of one or more periods
- Missing monthly/quarterly returns for EWT.
Filed under the wrong period
- Example: filed for March but encoded as April; or wrong taxable year.
Filed under the wrong form
- Particularly relevant because BIR modernized withholding forms over time; taxpayers sometimes file the new form while the system still expects the old form (or vice versa), or they remain registered under an old tax type.
Filed but not “posted”
- Filing exists, but BIR’s monitoring record does not reflect it due to encoding mismatch, system issues, or wrong identifiers (TIN/branch/RDO).

C. Payment-related causes

Return filed but payment not posted/matched
- Payment may have been made but not properly linked to the return.
Payment posted but no return
- Payment was made (or credited) but the return is missing or rejected.
Underpayment
- The return shows tax due, but payment was short, leaving a deficiency.

D. 1604-E / alphalist-specific causes

Non-filing of 1604-E
1604-E filed but required alphalist not submitted
Alphalist submitted but rejected / invalid format / not acknowledged
1604-E totals do not reconcile with periodic remittances
Payee details issues
- Missing/invalid TINs, incorrect payee names, or other data integrity issues that lead to submission problems and compliance flags.

V. The governing legal framework (high-level, Philippine context)

A. Withholding tax as a “trust” mechanism

Expanded withholding tax is collected through withholding agents acting as collectors for the government. The withholding agent is obliged to:

withhold when required,
remit within deadlines,
file the required returns, and
maintain and submit information returns/alphalists.

B. Penalties that typically apply

Where returns are late or missing, the usual penalty structure under the Tax Code can involve:

surcharge (commonly 25% for late filing/payment; higher in certain aggravated cases);
interest (computed from statutory due date until full payment; the statutory interest rule references the prevailing legal interest framework); and
compromise penalties (administrative compromise amounts per BIR schedules and RDO practice).

For zero/“no tax due” late filings, there is typically no deficiency tax and therefore no interest on tax due, but there can still be compromise penalties and other administrative consequences.

VI. Step-by-step: how to resolve open cases (practical, RDO-ready approach)

Step 1 — Confirm whether you are required to file (registration audit)

Start with your BIR Form 2303 (Certificate of Registration) and identify:

Are you registered for EWT returns (1601-E or its equivalent tax type)?
Are you registered for 1604-E annual information return?
When did these tax types become effective (and were they supposed to be removed earlier)?

If you should not be registered for these tax types anymore: You will still need to clear open cases for the periods when you were registered (unless the RDO accepts a formal correction/abatement route). Separately, file BIR Form 1905 (or the applicable update form/process) to remove unnecessary tax types going forward.

Step 2 — Secure the official open case listing from the RDO

Request a printout/list showing:

tax type (1601-E / 1604-E);
period(s) tagged open;
reason code/remarks (non-filing, non-payment, etc.).

Treat this list as the master checklist.

Step 3 — Build a year-by-year reconciliation file (do this before you file anything late)

For each taxable year involved, prepare:

A schedule of all payments subjected to EWT:
- payee name, TIN, nature of payment, taxable base, rate, tax withheld, date paid.
A schedule of periodic remittances:
- return period, tax withheld, tax remitted, proof of filing/payment.
A schedule that ties to annual totals:
- totals for 1604-E and the annual alphalist.

This prevents a common mistake: clearing “non-filing” by rushing late filings that later don’t reconcile, forcing amendments and prolonging the open-case closure.

Step 4 — Resolve by category (what to do for each type of open case)

A. Open case = NON-FILING (1601-E periods)

Fix: File the missing return(s) for every period in the open case list.

If there were no EWT transactions that period: file a zero return if you were registered and required to file.
If there were transactions: file with correct taxable base and tax withheld, then pay tax due plus penalties.

Key points that avoid rejections and new mismatches:

Use the correct form version for the year/period.
Ensure the correct TIN/branch code, RDO, and period.
Print and keep proof of successful filing (confirmation/validation).

B. Open case = NON-FILING (1604-E)

Fix: File the annual 1604-E for the year(s) tagged open.

Then ensure you also complete its companion requirements:

annual alphalist of payees (and required schedules), and
reconciliation with the periodic remittances.

If there truly were no payments subject to EWT for the year, some RDOs still expect the annual information return if the tax type is active; others treat it differently depending on registration and circumstances. In practice, clearing is smoother when the filing requirement is met consistently with your COR registration and the RDO’s open case list.

C. Open case = RETURN FILED, NO PAYMENT (or payment mismatch)

This can happen in three ways:

Tax was due and was never paid
- Pay tax due + surcharge + interest + compromise penalty (as assessed/accepted).
Tax was paid but not posted/matched
- Present proof of payment (validated bank slip/e-receipt/payment confirmation) and request matching/encoding to the specific return period.
Payment was applied to the wrong period/form
- You may need a payment transfer/reallocation request (typically by letter with attachments; some RDOs require specific internal routing). You may also need to file the missing correct-period return and have the payment credited there.

D. Open case = LATE FILING / LATE PAYMENT (penalties not settled)

Even after you file a late return, the RDO may keep the case open until you settle:

compromise penalty and/or
assessed civil penalties.

Bring:

computation (or request the RDO’s computation),
payment proof (often through a separate payment form depending on the RDO workflow), and
filed return proof.

E. Open case = MISSING ALPHALIST (QAP / annual alphalist)

This is one of the most frequent reasons 1601-E/1604-E cases stay open even after tax is paid.

Fix: Submit the required alphalist(s) and secure proof of successful submission/receipt.

Commonly encountered lists:

Quarterly/periodic alphalist of payees associated with EWT remittances (often referred to in practice as a QAP-style submission); and
Annual alphalist attached to or required for 1604-E.

Practical failure points that keep cases open:

file was sent but not acknowledged;
file format was rejected;
wrong year/TIN/branch code in the alphalist header;
missing mandatory fields (payee TIN, amount fields, etc.);
duplicate or inconsistent entries.

Prepare a clean resubmission and keep the acknowledgment/receipts.

F. Open case = RECONCILIATION MISMATCH (1604-E vs periodic returns)

BIR often expects that the sum of periodic withheld/remitted amounts equals the annual totals.

Fix options (choose the one that matches the truth of your records):

If periodic returns were correct but 1604-E totals are wrong → file an amended 1604-E (and corrected alphalist).
If 1604-E reflects the true totals but periodic filings were wrong → file amended periodic returns for the affected periods.
If both are wrong → correct both, and ensure the alphalist and any issued withholding certificates align.

Where amendments change tax due, settle any resulting deficiency plus penalties.

VII. Computing and paying penalties (what is usually required to close the case)

A. For periods with tax due (withheld tax not remitted on time)

Penalties typically include:

surcharge for late filing/payment (standard rate applies unless an aggravated rate is legally triggered),
interest from due date until payment, and
compromise penalty (administrative).

B. For “no tax due” periods (zero returns)

There may be:

compromise penalties for late filing/non-filing,
but usually no interest (because there is no tax due to accrue interest on).

C. Abatement/relief concepts (limited and fact-specific)

Tax law allows certain abatements/compromises in specific situations (e.g., penalties attributable to reasonable cause). In practice, withholding tax cases—especially where tax was actually withheld from payees—are treated strictly because the amounts are viewed as collected for the government. Relief is more plausible for purely administrative non-filing with zero tax due, but still depends on RDO evaluation and documentation.

VIII. The “closure packet”: what to submit so the RDO can actually close the cases

A common reason open cases persist is that filing/payment is done, but the RDO is not given a complete set of documents to close the monitoring record.

A strong closure packet typically includes:

Cover letter requesting closure of specified open cases
- include registered name, TIN, branch, RDO, address, contact details
- list tax type and periods to be closed
Open case listing from the RDO (marked and annotated)
Proof of filing for each return
- printed returns + filing confirmation/validation
Proof of payment for each period with tax due/penalties
- bank-validated documents or electronic payment confirmations
Proof of alphalist submissions
- acknowledgment screens/emails/receipts as accepted by the submission channel used
Reconciliation schedules
- summary tying periodic totals to 1604-E totals
- payee-level rollforward if needed
For corrections:
- copies of amended returns and explanation of changes
- documents supporting payment transfer/reallocation, if applicable

After submission, request an updated open case printout showing the cases as closed (or the RDO’s equivalent confirmation).

IX. Special situations and how they affect open cases

A. You had no operations / dormant period

Dormancy does not automatically stop return expectations. If 1601-E/1604-E tax types remained active, open cases can accumulate. Typical resolution path:

file zero returns for required periods, then
remove the tax type going forward (registration update) or process closure properly.

B. You were never supposed to be a withholding agent

If you can document that you should not have been registered for EWT withholding (e.g., registration error), you may request correction. In practice, many RDOs still require filings up to the effective correction date unless the registration issue is clearly established and corrected through internal processes.

C. You paid suppliers and should have withheld but did not

This is not merely an “open case” issue; it can become an audit exposure:

BIR may assess deficiency withholding tax (as if you should have withheld),
plus penalties,
and potentially disallow related deductions depending on audit posture and rules applied.

Open cases for 1601-E/1604-E sometimes surface because the taxpayer is registered as a withholding agent but did not file, while their expense levels suggest payments that should have been subjected to withholding.

D. You issued withholding certificates (e.g., 2307) but did not remit correctly

This can create a serious mismatch because payees may claim tax credits based on certificates issued. BIR can cross-check certificates against remittance and alphalists.

X. Prevention: how to avoid recurring 1601-E/1604-E open cases

Keep your COR tax types accurate
- Remove 1601-E/1604-E tax types if no longer applicable.
Maintain a withholding tax ledger
- payee, nature of payment, taxable base, rate, withheld amount, period remitted.
Reconcile quarterly and annually
- do not wait until year-end; reconcile before filing the annual 1604-E.
Treat alphalists as a required filing, not an “attachment”
- late or rejected alphalists commonly keep cases open even when taxes are paid.
Validate identifiers
- correct TIN, branch code, and period on every filing/payment and alphalist header.

XI. Practical template: cover letter outline (for open case closure)

Subject: Request to Close BIR Open Cases – 1601-E and 1604-E Body essentials:

Taxpayer name, TIN, branch code, RDO
List of open cases (tax type + period + reason, if available)
Statement that returns have been filed and payments/alphalists submitted
Inventory of attached proofs (returns, confirmations, receipts, alphalist acknowledgments, reconciliation schedules)
Request for updating/closure in the RDO monitoring system and issuance of an updated open case status printout

XII. Bottom line

Resolving 1601-E and 1604-E open cases is less about a single filing and more about closing a compliance chain:

correct registration →
complete periodic filings/remittances →
complete annual 1604-E →
complete alphalists →
reconcile totals →
settle penalties (when applicable) →
submit proofs so the RDO can close the cases in its monitoring system.