BIR resumes tax audits

By Aubrey Rose A. Inosante, Reporter

The Bureau of Internal Revenue (BIR) is resuming the issuance of  letters of authority (LoA) and mission orders after a two-month suspension triggered by complaints these were being misused and weaponized.

“We are lifting the suspension of issuing letters of authority, mission order and field audits with reforms in place,” Finance Secretary Frederick D. Go said in a briefing on Tuesday.

BIR Commissioner Charlito Martin R. Mendoza said the suspension of all filed audits and related operations since Nov. 24 had allowed the agency to review audit procedures, consult stakeholders, and implement reforms.

“That review has now been completed. We are lifting the suspension because key reforms are in place,” Mr. Mendoza said in a briefing on Tuesday.

The LoA is a document from the BIR that allows an examiner to inspect taxpayer accounts. It is required before any tax audit can proceed.

As tax audits resume, Mr. Mendoza said taxpayers can expect reforms, include the adoption of a single-instance audit framework. This limits each taxpayer to one LOA per taxable year, and the consolidation of multiple audit authorities into a single LOA.

In addition, the BIR shut down the Value-Added Tax Audit Section (VATAS) and VAT Tax Audit Unit (VATAU) units, as well as disbanded existing audit task forces.

“Audit authority will now be limited to the regional offices and the large taxpayers’ service,” Mr. Mendoza said.

He also said taxpayers will be able to verify the authenticity of their LOAs through the BIR website using the REVIE chatbot.