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Great news from the Bureau of Internal Revenue (BIR)! They\u2019ve hit pause on all audit operations amid concerns about the misuse of Letters of Authority (LOA).<\/p>\n
\u201cI’ve ordered an immediate halt to all field audits and related activities, including issuing any Letters of Authority (LOAs) and Mission Orders (MOs) effective right now, following Revenue Memorandum Circular (RMC) No. 107-2025,\u201d announced BIR Commissioner Charlito Martin R. Mendoza.<\/p>\n
\u201cNo LOA or MO will be created, printed, signed, or delivered during this suspension,\u201d<\/span> he added.<\/p>\n Finance Secretary Frederick D. Go echoed support for this move, sharing in a separate statement that all field audits were paused in response to taxpayers raising their concerns.<\/p>\n The LOA is crucial because it allows revenue<\/span> officers to kickstart an investigation into a taxpayer\u2019s liabilities, and it\u2019s a must-have before any audit can take place.<\/span><\/p>\n \u201cWe\u2019re listening! We\u2019re hearing your worries and acting on them quickly. The people deserve more,\u201d Mr. Go stated.<\/p>\n \u201cThe Department of Finance is dedicated to protecting our taxpayers from any potential misuse through a thorough review of our current policies and procedures,\u201d he added.<\/p>\n Mr. Mendoza, who just took on his role on November 13, confirmed that this temporary pause will affect all BIR offices involved in audits and field operations.<\/p>\n This holds true for the Large Taxpayers Service, Revenue Regions, District Offices, Assessment Divisions, Value-Added Tax Audit Units, and the Intelligence and Special Audit Units.<\/p>\n \u201cExceptions to this suspension only apply to urgent cases or legally mandated ones. This may include active criminal investigations, one-time transactions, audits that must happen within six months, refund claims that need audits, or immediate actions on taxpayers flagged through verified intelligence,\u201d explained the BIR chief.<\/p>\n Mr. Mendoza also revealed plans for establishing a Technical Working Group focused on ensuring the integrity of Letters of Authority and Mission Orders during this time.<\/p>\n The group will assess current procedures, pinpoint vulnerabilities, suggest updated LOA protocols, and add digital safeguards along with consistent audit standards.<\/p>\n \u201cThis pause is essential to protect taxpayer rights, reinforce internal discipline, and maintain the integrity of our audit processes. We take every complaint to heart, and any misuse of authority, harassment, or irregularity is simply unacceptable in the Bureau,\u201d Mr. Mendoza emphasized.<\/span><\/p>\n Meanwhile, Senator Erwin T. Tulfo has taken action by filing Senate Resolution No. 180, calling for an investigation into the misuse and \u201cweaponization\u201d of LOAs.<\/p>\n \u201cWe\u2019re really hoping the Blue Ribbon will take on this issue swiftly, especially since it\u2019s been abused while everyone\u2019s focused on the flood control situation,\u201d Mr. Tulfo, who co-chairs the committee, said during a news briefing that mixed Filipino and English.<\/p>\n In the resolution, he urged the committee to review the existing audit and LOA issuance protocols, explore vulnerabilities in both paper and digital trails, examine internal controls, and suggest needed reforms.<\/p>\n \u201cWe\u2019ve heard from companies claiming that BIR personnel have misused LOAs to extort businesses, even when taxes have already been paid,\u201d he added.<\/p>\n