The Bureau of Internal Revenue (BIR) today, January 27, released ๐ฅ๐ฒ๐๐ฒ๐ป๐๐ฒ ๐ ๐ฒ๐บ๐ผ๐ฟ๐ฎ๐ป๐ฑ๐๐บ ๐๐ถ๐ฟ๐ฐ๐๐น๐ฎ๐ฟ ๐ด-๐ฎ๐ฌ๐ฎ๐ฒ for the resumption of all tax audit and field operations of the Bureau that were suspended under a previous order issued last November 2025. Alongside the RMC is the ๐ฅ๐ฒ๐๐ฒ๐ป๐๐ฒ ๐ ๐ฒ๐บ๐ผ๐ฟ๐ฎ๐ป๐ฑ๐๐บ ๐ข๐ฟ๐ฑ๐ฒ๐ฟ ๐ก๐ผ ๐ญ-๐ฎ๐ฌ๐ฎ๐ฒ prescribing revised policies, controls, and procedures for tax audit and assessment following the lifting of the suspension imposed under RMC 107-2025 issued last November 2025.
The RMC orders the resumption of issuance of electronic Letters of Authority (eLAs), Mission Orders (MOs), and Tax Verification Notices (TVNs), the continuation and completion of audit cases previously suspended, enforcement verification, assessment, and collection activities requiring audit or field operations, and other audit or enforcement activities necessary to protect revenue or enforce compliance. The RMC, which takes effect immediately, also orders that all tax audit and field operations conducted after the resumption order shall now comply with RMO 1-2026.
During todayโs joint press conference of the DOF and the BIR, Finance Secretary Frederick Go co-announced the lifting of the suspension, saying that the BIR has completed a comprehensive review and has engaged the private sector to address the main concerns raised last year.
โThe BIR has designed concrete reforms to make audits fairer, more predictable, and more accountable. These changes align with the administrationโs big, bold reforms to improve the ease of doing business and strengthen trust in government,โ said Secretary Go.
Commissioner Mendoza said the suspension last November gave the Bureau time to review audit procedures, consult stakeholders, and implement reforms.
โThat review has now been completed. We are lifting the suspension ๐ฏ๐ฒ๐ฐ๐ฎ๐๐๐ฒ ๐ธ๐ฒ๐ ๐ฟ๐ฒ๐ณ๐ผ๐ฟ๐บ๐ ๐ฎ๐ฟ๐ฒ ๐ถ๐ป ๐ฝ๐น๐ฎ๐ฐ๐ฒ. I thank the ๐ง๐ฒ๐ฐ๐ต๐ป๐ถ๐ฐ๐ฎ๐น ๐ช๐ผ๐ฟ๐ธ๐ถ๐ป๐ด ๐๐ฟ๐ผ๐๐ฝ ๐ผ๐ป ๐๐๐๐ฒ๐๐๐บ๐ฒ๐ป๐ ๐๐ป๐๐ฒ๐ด๐ฟ๐ถ๐๐ ๐ฎ๐ป๐ฑ ๐๐๐ฑ๐ถ๐ ๐ฅ๐ฒ๐ณ๐ผ๐ฟ๐บ ๐ณ๐ผ๐ฟ ๐ฟ๐ฒ๐๐ถ๐ฒ๐๐ถ๐ป๐ด audit rules, processes, systems, and controls, and crafting the reforms for audit resumption. I also thank the Department of Finance, Senate members, and our private sector partners for their guidance and constructive input,โ Mendoza explained.
In a public-private consultation on audit reforms last week, January 21, the BIR presented to the private-sector representatives of the BIR Partnership with Multisectoral Group (BIR-PMSG) the salient features of the new guidelines under RMO 1-2026 that will now govern all audit conduct. These reforms were well-received and supported by the private sector.
๐ฅ๐ฒ๐ณ๐ผ๐ฟ๐บ๐ฒ๐ฑ ๐ฃ๐ผ๐น๐ถ๐ฐ๐ถ๐ฒ๐, ๐ง๐ถ๐ด๐ต๐๐ฒ๐ฟ ๐๐๐ฑ๐ถ๐ ๐๐ผ๐ป๐๐ฟ๐ผ๐น๐
Salient features of the new RMO 1-2026 include:
1. Clear Audit Authority. Clarification on the proper labels for taxpayer verification, to avoid confusion as to the kind of audit and verification instrument that is issued: eLA, MO, or TVN.
2. One LOA per taxpayer per year. Single Instance Audit Framework, which, except for fraud cases, and as a general rule, shall conduct only one eLA per taxpayer per taxable year, covering all applicable internal revenue tax types, including value-added tax (VAT). Taxpayers with multiple previously issued eLAs may request that they be consolidated into a single LOA.
3. Risk-based data-driven selection using system-assisted audit selection, which provides for the use of risk-based criteria in generating an anonymized list of candidate taxpayers to be subjected to audits.
4. Abolished Task Forces. The tax forces that were previously created to conduct audits are now abolished, and the transfer of their audit and assessment functions shall return to the regular offices of the BIR.
5. Shut down of VAT Audit Sections (VATAS) and Large Taxpayers VAT Audit Units (LT-VAU) to rationalize audit authority.
6. Ensure fair and proper assessments. Revenue Officers shall not issue unreasonable assessments. Audit notices shall be anchored only on issues that remain unresolved and shall clearly state the factual and legal bases, including the applicable law and jurisprudence.
7. During the conduct of audits and assessments, the mandatory use of standardized audit checklists and proper documentation of audit events and taxpayer interactions shall be required. Minutes of any audit event must be duly signed by the taxpayer and the revenue officer.
8. While examination and inspection of books of accounts and other accounting records shall be conducted in the taxpayer’s office or the designated place of business, or in the BIR office, the taxpayer is given reasonable options on the manner and venue when the required records are voluminous and handling and transporting would be impractical, burdensome, or disruptive.
๐๐๐ฑ๐ถ๐ ๐ฅ๐ฒ๐ณ๐ผ๐ฟ๐บ๐ ๐ฃ๐ฎ๐ฟ๐ ๐ผ๐ณ ๐๐๐ฅ ๐๐๐ฅ๐๐ฆ ๐ฅ๐ฒ๐ณ๐ผ๐ฟ๐บ ๐๐ด๐ฒ๐ป๐ฑ๐ฎ
BIR Commissioner Charlito Martin R. Mendoza reiterated that the audit reforms are part of BIR D.A.R.E.S., the Bureauโs five-point priority reform and legacy agenda, emphasizing that audit reform is a key pillar of the institutionโs broader, phased transformation.
โWe deliberately framed BIR DARES not only as ๐ฟ๐ฒ๐ณ๐ผ๐ฟ๐บ ๐๐ผ๐ฟ๐ธ, but as ๐น๐ฒ๐ด๐ฎ๐ฐ๐ ๐๐ผ๐ฟ๐ธโ work that is meant to endure beyond immediate fixes and beyond any single term of leadership. These are reforms we intend to institutionalize, embed in systems and processes, and carry forward so that they last. Audit reform, therefore, is ๐ผ๐ป๐ฒ ๐ฝ๐ถ๐น๐น๐ฎ๐ฟ ๐ผ๐ณ ๐ฎ ๐ฏ๐ฟ๐ผ๐ฎ๐ฑ๐ฒ๐ฟ, ๐น๐ฎ๐๐๐ถ๐ป๐ด ๐๐ฟ๐ฎ๐ป๐๐ณ๐ผ๐ฟ๐บ๐ฎ๐๐ถ๐ผ๐ป,โ stressed Commissioner Mendoza.
BIR D.A.R.E.S. stands for Digital and Data Transformation, Audit Reform and Accountability, Revenue Collection and Base Protection, Employee Empowerment and Welfare Promotion, and Service Excellence and Stakeholder Engagement.
View the RMC and RMO on the BIR website through the following links:
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