The Bureau of Internal Revenue (BIR) announced the resumption of all tax audit and field operations nationwide, following a two-month suspension dedicated to a comprehensive overhaul of assessment procedures.
The move was formalized through the release of Revenue Memorandum Circular (RMC) 8-2026, which ends the suspension imposed last November, and Revenue Memorandum Order (RMO) 1-2026, which introduces a reformed framework designed to make tax audits fairer, more transparent, and less burdensome for taxpayers.
During a joint press conference, Finance Secretary Frederick Go emphasized that the lifting of the suspension is not a return to “business as usual,” but a transition to a more accountable system. “The BIR has designed concrete reforms to make audits fairer, more predictable, and more accountable,” Secretary Go stated. “These changes align with the administration’s big, bold reforms to improve the ease of doing business and strengthen trust in government.”
Commissioner Charlito Martin R. Mendoza explained that the hiatus allowed the Bureau to engage in deep consultations with the private sector and the Technical Working Group on Assessment Integrity and Audit Reform.
“We are lifting the suspension because key reforms are now in place,” Mendoza said. “This is legacy work—reforms we intend to institutionalize so they last beyond any single leadership term.”
The new guidelines aim to eliminate redundant investigations and prevent “fishing expeditions” by revenue officers. Significant changes include:
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One LOA Per Taxpayer Per Year: Under a new “Single Instance Audit Framework,” taxpayers will generally only face one electronic Letter of Authority (eLA) per taxable year, covering all tax types.
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Abolition of Special Task Forces: Specialized audit task forces have been disbanded, returning all assessment functions to regular BIR offices to streamline accountability.
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Data-Driven Selection: To remove bias, the BIR will use a system-assisted, risk-based criteria to generate anonymized lists of taxpayers for audit.
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Abolition of VAT Audit Sections: The VATAS and Large Taxpayers VAT Audit Units (LT-VAU) have been shut down to rationalize audit authority.
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Fair Assessment Mandate: Revenue officers are strictly prohibited from issuing unreasonable assessments. All notices must now include clear factual and legal bases, supported by applicable law and jurisprudence.
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Taxpayer Convenience: While inspections typically occur at the taxpayer’s office, new rules provide flexible options for the venue if records are too voluminous to transport.
These reforms are a central pillar of BIR D.A.R.E.S., Commissioner Mendoza’s five-point priority agenda:
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Digital and Data Transformation
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Audit Reform and Accountability
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Revenue Collection and Base Protection
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Employee Empowerment and Welfare Promotion
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Service Excellence and Stakeholder Engagement
Effective immediately, the BIR will resume the issuance of eLAs, Mission Orders (MOs), and Tax Verification Notices (TVNs), all of which must strictly comply with the new RMO 1-2026 guidelines.
