The Bureau of Internal Revenue (BIR) has ordered an immediate and indefinite suspension of all field audits and related field operations nationwide.
Though officially effective as of November 24, 2025, through Revenue Memorandum Circular (RMC) No. 107-2025, this directive remains critical for businesses planning their 2026 compliance strategy.
The suspension covers the issuance of Letters of Authority (LOA), Mission Orders (MO), and routine examinations of books of accounts.
Why the Suspension Was Issued
The Commissioner of Internal Revenue (CIR) ordered this pause to facilitate a comprehensive review of the bureau’s audit policies. The goal is to address systemic issues, standardize audit procedures, and develop a new protocol focused on integrity and digital safeguards.
During this period, the Technical Working Group on LOA Integrity and Audit Reforms will be reworking the guidelines to prevent irregular audit practices.
What Activities Are Currently Suspended?
Until a new order is released to lift the suspension, the following BIR activities are halted for most taxpayers:
- Field Audits: No new investigations or physical visits to taxpayer premises.
- Issuance of LOAs/MOs: No new Letters of Authority or Mission Orders will be generated, signed, or served.
- Ongoing Examinations: Routine verification of books of accounts and records is paused.
- Supplementary LOAs: No revalidation or extension of existing LOAs will be granted unless they fall under specific exceptions.
Crucial Exceptions: When Audits Will Continue
It is vital to understand that this is not a total freeze. The BIR will continue to investigate and issue orders for specific high-priority or time-sensitive cases, including:
- Prescribing Cases: Tax liabilities that will expire (prescribe) within six months from November 24, 2025.
- Tax Evasion & Fraud: Active criminal investigations supported by verified intelligence, inter-agency referrals, or third-party data matching.
- One-Time Transactions: Processing of returns for Estate Tax, Donor’s Tax, Capital Gains Tax, and Withholding Tax on property/share sales.
- Retiring Businesses: Examinations required for the official retirement or closure of a business.
- Refund Claims: Cases where an audit is statutorily required to process a tax refund.
How to Utilize This “Audit Break”
While the suspension offers temporary relief from routine inspections, businesses should view this as a compliance window rather than a vacation from tax obligations.
- Self-Assessment: Use this time to conduct an internal mock audit. Review your 2025 filings and reconcile them with your financial statements before the BIR resumes operations with stricter protocols.
- Voluntary Payment: Taxpayers are explicitly allowed to voluntarily pay known deficiency taxes during this period without needing prior approval. Correcting errors now can save you from penalties later.
- Organize Records: Ensure all substantiating documents (invoices, receipts, contracts) are digitized and ready. The post-suspension audit framework is expected to be more data-driven and rigorous.
Need Help Reviewing Your Compliance?
The suspension period is the ideal time to identify and fix vulnerabilities in your tax structure. Contact our Philippines tax team for a comprehensive health check of your accounts to ensure you are ready when regular audits resume.
