The Bureau of Internal Revenue (BIR) has temporarily suspended all field audits and related operations — including the issuance of Letters of Authority (LOAs) and Mission Orders (MOs) — after numerous complaints from taxpayers about misuse and harassment.
BIR Commissioner Charlito Mendoza says the suspension is part of a reform effort “to protect taxpayer rights, strengthen internal discipline, and ensure the integrity of our audit processes.”
The pause affects all major audit teams, such as those from the Large Taxpayers Service, VAT Audit Units, and Regional and District Offices. However, some cases are exempt: ongoing criminal investigations, audits close to prescription deadlines, refund claims that require audits, and other urgent matters flagged by verified intelligence.
To address the problem, Mendoza has ordered the creation of a technical working group to review current LOA and MO practices. The group will look into systemic weaknesses and propose reforms — such as digital safeguards and standardized audit protocols — to make the process more transparent and fair.
The move comes amid growing calls for a Senate investigation. Senator Erwin Tulfo, in particular, has filed a resolution seeking to examine alleged “weaponization” of LOAs. He claims some BIR offices used LOAs to extort businesses, combine multiple years into a single audit, and pressure companies into unofficial settlements.
Finance Secretary Frederick Go echoed the urgency of reform: he emphasized that taxpayers deserve “fair and honest tax audits” and pledged a thorough review of BIR’s policies and procedures.