The Department of Finance (DOF) on Monday announced the immediate and temporary suspension of all Bureau of Internal Revenue (BIR) field audits and related operations, including the issuance of letters of authority (LOAs) and mission orders (MOs).
The move, effective immediately and outlined in Revenue Memorandum Circular (RMC) No. 107-2025, comes in response to concerns raised by taxpayers regarding these audit procedures.
Finance Secretary Frederick Go and BIR Commissioner Charlito Martin Mendoza made the joint announcement, saying the suspension is necessary to protect taxpayer rights, strengthen internal discipline and ensure the integrity of the audit processes.
“We hear the people. We hear your concerns and are immediately acting on them. The people deserve better,” Go said.
Mendoza said he had ordered the suspension after extensive internal consultations and under the guidance of Go, aiming for alignment with national priorities on good governance taxpayer protection and efficient revenue administration.
He noted that in his first week in office, he had convened key BIR units to understand audit operations and identify long-standing issues affecting taxpayer experience and internal discipline.
The temporary suspension applies to all BIR offices involved in audit and field operations, including the Large Taxpayers Service Revenue Regions and District Offices Assessment Divisions VAT Audit Units and Intelligence and Special Audit Units.
Certain urgent or legally mandated cases are exempt from the suspension, he said.
These exceptions include active criminal investigations one-time transactions audits prescribing within 6 months refund claims that require audits and immediate action on taxpayers flagged by verified intelligence.
Mendoza said that any misuse of authority harassment or irregularity has no place in the bureau.
He instructed the creation of a technical working group on LOA and MO integrity and audit reforms to evaluate existing procedures, identify systemic vulnerabilities and recommend revised protocols and standards.
The goal is to create processes that are predictable evidence-based technology-driven and fair while helping the Bureau perform its mandate efficiently, he said.
He also pointed to the directive of President Ferdinand Marcos Jr. to continue meeting revenue targets while strengthening service delivery for all taxpayers.
