BIR suspends Audit and other fields of operations, including LOAs and MOs

The Bureau of Internal Revenue (BIR) has ordered a suspension of all fields of audit and other field operations following and under the authority of all Task Forces, those created via Revenue Special Orders (RSOs), Operation Memoranda (OM), and other similar orders or directives, relative to examinations and verifications of taxpayers' books of account, records, and other transactions. Letters of Authority (LOAs) and Mission Orders (MOs) that are relative to examinations and verifications of taxpayers' books of account, records, and other transactions are also suspended until given further notice by the BIR.

The suspension was implemented through Revenue Memorandum Circulars (RMC) 76-2022 and 77-2022; upon their release, no field audit, field operations, or any form of business visitation in the execution of LOAs/Audit Notices or MOs should be conducted by the said Task Forces, nor should any new letters of LOAs or MOs be issued further.

Written orders to audit and/or investigate taxpayers' internal revenue tax liabilities are now prohibited. They will no longer be issued and/or served pursuant to, and under authority, of said Task Forces. However, the cases below are considered exceptions:

• Investigation of cases prescribing on or before October 31, 2022
• Processing and verification of estate tax returns, donor's tax returns, capital gains tax returns and withholding tax returns on the sale of real properties or shares of stocks together with the documentary stamp tax returns related thereto;
• Examination and/or verification of internal revenue tax liabilities of taxpayers retiring from business;
• Audit of National Government Agencies (NGAs), Local Government Units (LGUs) and Government-Owned and Controlled Corporations (GOCCs) including subsidiaries and affiliates; and
• Other matters/concerns where deadlines have been imposed or under the orders of the Commissioner of Internal Revenue.
  • Let it be noted that the service of Assessment Notices, Warrants, and Seizure Notices should still be effected. Additionally, taxpayers have the option of voluntarily paying their known deficiency taxes without the need to secure authority from concerned Revenue Officials.

The RMCs also stated that the respective heads and members of the Task Forces mentioned are required to submit a status report of the audits they have so far conducted to the Office of the Commissioner. The report must contain a brief description of the Task Force to which they belong, the total electronic Letters of Authority (eLOAs), Mission Orders (MOs) and Closure Orders issued if any. The following should be attached to the report: Annex "A" – a copy of the RSO / OM /Memorandum / RRSO for the Task Force; Annex "8" - Accomplishment Report; and Annex "C" - Status of Pending Cases.

The BIR then provided a deadline, stating that all reports need to be passed on or before noon of June 15, 2022. Afterwards, a case-to-case review and evaluation of the necessity and progress of each Task Force created will be administrated by the Office of the Commissioner before the Task Force under scrutiny is allowed to resume its audit functions and other field operation activities.

Furthermore, the inventory of all outstanding LOAs/Audit Notices and Letter Notices made as of May 30, 2022, must be submitted to the Office of the Commissioner in Excel format, in both softcopy via CDs/DVDs and a hardcopy, on or before noon of June 15, 2022. The template for the inventory can be viewed HERE.