BIR Temporarily Suspends All Field Audits: What Taxpayers Need to Know (November 24, 2025)
- Yasser Aureada
- 2 hours ago
- 3 min read
The Department of Finance (DOF) and the Bureau of Internal Revenue (BIR) have announced a major policy move: all field audits and related operations are suspended immediately, following growing concerns from taxpayers about the issuance and handling of Letters of Authority (LOAs) and Mission Orders (MOs).
Finance Secretary Frederick D. Go and BIR Commissioner Charlito Martin R. Mendoza delivered the statement together, emphasizing a renewed commitment to fairness, transparency, and taxpayer protection.
Why the BIR Suspended Field Audits
In recent months, the BIR has faced increasing complaints from taxpayers about the way LOAs and MOs are being issued and enforced.
What are LOAs and MOs?
LOA (Letter of Authority): A document that legally allows the BIR to audit a taxpayer.
MO (Mission Order): A document authorizing BIR officials to conduct certain field operations.
Concerns around these documents — from misuse to inconsistent practices — prompted the government to act.
Secretary Go explained: “We hear the people. We hear your concerns and are immediately acting on them. The people deserve better.”
The temporary suspension allows the DOF and BIR to review and reform audit procedures to prevent potential abuse and improve tax administration.
What Is Covered by the Suspension?
Under Revenue Memorandum Circular (RMC) No. 107-2025, the following are suspended effective immediately:
All BIR field audits
Issuance of new LOAs
Issuance of new Mission Orders
All related audit and field operations
This suspension affects all major BIR units, including:
Large Taxpayers Service
Revenue Regions and District Offices
Assessment Divisions
VAT Audit Units
Intelligence and Special Audit Units
Commissioner Mendoza was clear: “No LOA or MO shall be created, printed, signed, or served during the suspension period.”
Exceptions to the Suspension
Some activities must continue due to legal or urgent requirements. These include:
Active criminal tax investigations
One-time transactions such as estate tax or capital gains tax
Audits close to prescription (within six months)
Refund claims requiring audits
Taxpayers flagged by verified intelligence reports
These exceptions ensure that critical investigations and time-sensitive legal obligations remain on track.
What This Means for Taxpayers
For individuals, professionals, and businesses — including MSMEs — this suspension has several immediate effects:
1. No new BIR audit will start for now.
Since LOAs and MOs cannot be issued, no new field audit can begin.
2. Many ongoing audits may pause.
Non-urgent audits are expected to hold while the suspension is in place.
3. More predictable and transparent processes are coming.
This pause is meant to reset the system and introduce clearer, technology-driven controls.
4. Taxpayers may see improved treatment and safeguards.
The DOF and BIR want to ensure that audits are conducted with fairness, professionalism, and accountability.
Reforms Underway
To lead the reform process, the BIR has created a Technical Working Group on LOA and MO Integrity and Audit Reforms. This group is responsible for:
Reviewing current audit procedures
Identifying weaknesses and loopholes
Recommending improvements
Integrating stronger digital safeguards
Introducing uniform, evidence-based audit standards
Commissioner Mendoza highlighted that these reforms align with President Ferdinand R. Marcos Jr.’s directive to ensure:
Efficient revenue collection
Fair service delivery
Predictable and transparent audit procedures
The government’s decision to temporarily suspend all BIR field audits is a major step toward reforming tax administration in the Philippines.
For now, taxpayers can expect:
A pause in new audits
A review of existing audit systems
Stronger protections and more transparent processes in the future
This move signals a clear message: audits must be fair, professional, consistent, and respectful of taxpayer rights.