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’re lifting the suspension of issuing letters of authority, mission order and field audits with reforms in place,” Finance Secretary Frederick D. Go said at a briefing on Tuesday.
BIR Commissioner Charlito Martin R. Mendoza said the suspension of all field audits and related operations since Nov. 24 had allowed the agency to review audit procedures, seek the advice of stakeholders, and implement reforms.
“That review has now been accomplished. We’re lifting the suspension because key reforms are in place,” Mr. Mendoza said at the identical briefing.
The LoA is a document from the BIR that permits an examiner to examine taxpayer accounts. It’s required before any tax audit can proceed.
The Marcos administration had issued 82,228 LoAs from January until Nov. 3 in 2025, BIR data showed. This was nearly double the amount in 2022.
Mr. Go said the excellent review led to concrete reforms to make tax audits fairer, more predictable, and more accountable.
“These changes align with the administration’s big, daring reforms to enhance the benefit of doing business and strengthen trust in government,” he said. “As audits resume, we urge taxpayers and the general public to actively take part in implementing these reforms.”
The BIR is about to issue a memorandum circular formalizing the tip of the suspension, backed by the Technical Working Group on Assessment Integrity and Audit Reform’s tweaked rules and process.
As tax audits resume, Mr. Mendoza said businesses should not fear these documents will likely be weaponized, as additional safeguards are in place to guard taxpayers.
“With all the brand new reforms that will likely be in place now with the lifting of the audit suspension, we’re confident that the conduct of audits will now be more transparent and controlled and with clearer oversight,” he said.
These reforms include adopting a single-instance audit framework. This generally limits each taxpayer to at least one LoA per taxable yr and the consolidation of multiple audit authorities right into a single LoA.
As well as, the BIR chief said the agency will shut down operations of the value-added tax audit service and VAT audit units, in addition to disband existing audit task forces.
“Audit authority will now be limited to the regional offices and the big taxpayers’ service,” Mr. Mendoza said.
He also said taxpayers will have the opportunity to confirm the authenticity of their LoAs through the BIR website using the REVIE chatbot.
Mr. Mendoza said taxpayers will now have reasonable options regarding the style and venue of record examinations, particularly when documents are voluminous and transporting them can be impractical, burdensome, or disruptive.
“We’ve strengthened documentation, verification, and oversight, and are launching an Audit Auditor Program to make sure revenue officer accountability,” he said.
At the identical time, Mr. Mendoza said that the actual collection from the LoA accounts for 2-3% of the agency’s overall intake, while the remainder comes from voluntary compliance.
Mr. Go earlier noted that the BIR couldn’t indefinitely suspend using LoAs, making it crucial to fulfill its revised P3.431-trillion revenue goal for 2026.
The BIR collected P3.11 trillion in 2025, falling in need of its full-year goal of P3.22 trillion. — Aubrey Rose A. Inosante