The Department of Finance (DOF) and the Bureau of Internal Revenue (BIR) on Monday announced the immediate and temporary suspension of all BIR field audits and related operations, citing growing taxpayer concerns over the issuance of Letters of Authority (LOAs) and Mission Orders (MOs).
Finance Secretary Frederick D. Go and newly appointed BIR Commissioner Charlito Martin R. Mendoza jointly made the announcement, stressing that the government is taking swift action to address complaints of harassment, irregularities, and misuse of audit authority.
“We hear the people. We hear your concerns and are immediately acting on them. The people deserve better,” Go said.
“The Department of Finance is committed to protecting our taxpayers from potential abuse through a comprehensive review of our existing policies and procedures,” he added.
Go emphasized that taxpayers must be treated “with the highest degree of professionalism, courtesy, and adherence to the rule of law,” noting that fair and honest audits are essential to sustaining the economy.
Mendoza said the sweeping suspension—issued through Revenue Memorandum Circular (RMC) No. 107-2025—takes effect immediately and covers all BIR units engaged in audit and field operations, including the Large Taxpayers Service, regional and district offices, Assessment Divisions, VAT Audit Units, and Intelligence and Special Audit Units.
“No LOA or MO shall be created, printed, signed, or served during the suspension period,” the commissioner said.
The order follows what Mendoza described as extensive internal consultations during his first week in office, undertaken with “the guidance and strategic oversight” of Secretary Go to ensure alignment with national priorities on good governance, taxpayer protection, and efficient revenue administration.
Limited exceptions
Mendoza clarified that only urgent or legally mandated cases are exempt, such as active criminal investigations, one-time transactions, audits nearing prescription within six months, refund claims requiring audit, and cases involving taxpayers flagged by verified intelligence.
“This suspension is necessary to protect taxpayer rights, strengthen internal discipline, and ensure the integrity of our audit processes,” he said. “Any misuse of authority, harassment, or irregularity has no place in the Bureau.”
To drive institutional reforms, Mendoza announced the formation of a Technical Working Group on LOA and MO Integrity and Audit Reforms, which will review existing procedures, identify vulnerabilities, and propose new protocols, including digital safeguards and uniform audit standards.
“Our goal is to create processes that are predictable, evidence-based, technology-driven, and fair,” he added. “These systems are meant to protect taxpayers while helping the Bureau perform its mandate efficiently.”
Mendoza reaffirmed President Ferdinand R. Marcos Jr.’s directive for the BIR to strengthen service delivery while continuing to meet revenue targets.
“The overarching directive of the President when I assumed office is to ensure efficient and fair revenue collections,” he said.