DOF, BIR suspend all tax audits amid abuse concerns
Finance Secretary Frederick D. Go
The Department of Finance (DOF) announced the immediate and temporary suspension of all field tax audits and related operations, citing widespread taxpayer concerns over “potential abuse” and irregularities in the issuance of audit documents.
In a statement on Monday, Nov. 24, Finance Secretary Frederick D. Go said the move aims to overhaul long-standing systemic vulnerabilities within the the Bureau of Internal Revenue (BIR).
“This is in response to the concerns raised by the taxpayers regarding the issuance of Letters of Authority and Mission Orders,” Go stated, adding that the DOF is committed to protecting taxpayers from potential abuse through a comprehensive review of existing policies.
“The people deserve better,” he added.
The suspension, formalized under Revenue Memorandum Circular (RMC) No. 107-2025, immediately halts the creation, printing, signing, and serving of all Letters of Authority (LOAs) and Mission Orders (MOs). These documents are prerequisites for official tax examiners to initiate field audits.
BIR Commissioner Charlito Martin R. Mendoza said the temporary measure applies across all BIR units involved in field operations, including the influential Large Taxpayers Service (LTS), Revenue Regions, District Offices, Assessment Divisions, and specialized audit units.
The directive follows the commissioner’s initial week in office, where internal consultations revealed long-standing issues affecting taxpayer experience and internal discipline.
While broad, the suspension includes essential exceptions to prevent the loss of potential government revenue or failure to meet legal obligations.
Audits will proceed only in cases deemed urgent or legally mandated, which encompass active criminal investigations, audits prescribing (expiring) within six months, refund claims that require immediate audit, one-time transactions (such as estate or transfer taxes), and immediate action on taxpayers flagged by verified intelligence reports.
To spearhead the policy overhaul, Mendoza announced the creation of a Technical Working Group tasked with evaluating procedures, identifying systemic vulnerabilities, and recommending revised protocols.
The ultimate objective, he said, is to establish audit processes that are “predictable, evidence-based, technology-driven, and fair,” aligning with President Ferdinand R. Marcos Jr.’s directive for efficient and transparent revenue collections.
The decision underscores a significant administrative shake-up at the BIR, acknowledging the critical need to restore public trust in the tax administration system while simultaneously maintaining the government’s mandate to meet demanding revenue targets.
The suspension signals a clear mandate from the top leadership to prioritize internal discipline and procedural integrity over uninterrupted field enforcement activity.