The Philippine DoF and BIR announced an immediate nationwide suspension of all BIR field audits and issuance of LOAs and MOs to review procedures and protect taxpayers, with limited exceptions for urgent or legally required cases.
The Philippine Department of Finance (DoF) has announced that the Bureau of Internal Revenue (BIR) will temporarily halt all field audits and related activities on 24 November 2025. This pause was formalised through Revenue Memorandum Circular (RMC) No. 107-2025, issued on 24 November 2025, and will continue until the BIR Commissioner decides to resume these operations.
Statement on the immediate and temporary suspension of all Bureau of Internal Revenue field audits and related operations
Good afternoon.
Commissioner Charlie Mendoza and I are here to make an important announcement.
The immediate and temporary suspension of all field audits and related operations of the Bureau of Internal Revenue.
This is in response to the concerns raised by the taxpayers regarding the issuance of Letters of Authority and Mission Orders.
We hear the people. We hear your concerns and are immediately acting on them. The people deserve better.
The Department of Finance is committed to protecting our taxpayers from potential abuse through a comprehensive review of our existing policies and procedures.
All taxpayers shall be treated with the highest degree of professionalism, courtesy, and adherence to the rule of law.
Our economy is built upon the contributions of our taxpayers who deserve fair and honest tax audits.
Commissioner Charlie will be providing details.
Statement of Commissioner Charlito Martin R. Mendoza
I have ordered the immediate suspension of all field audits and other related operations, including the issuance of Letters of Authority (LOAs) and Mission Orders (MOs), effective immediately, in accordance with Revenue Memorandum Circular (RMC) No. 107-2025.
No LOA or MO shall be created, printed, signed, or served during the suspension period.
In my first week in office, I have convened key units of the Bureau of Internal Revenue to gain a thorough understanding of existing audit operations and to identify long-standing issues that have affected taxpayer experience and internal discipline. The suspension was issued after extensive internal consultations and was undertaken with the guidance and strategic oversight of Finance Secretary Frederick Go to ensure full alignment with national priorities on good governance, taxpayer protection, and efficient revenue administration.
The temporary suspension applies to all BIR offices involved in audit and field operations, including the Large Taxpayers Service, Revenue Regions and District Offices, Assessment Divisions, VAT Audit Units, and Intelligence and Special Audit Units.
The exceptions to the suspension apply only to urgent or legally mandated cases such as active criminal investigations, one-time transactions, audits prescribing within six months, refund claims that require audits, or immediate action on taxpayers flagged by verified intelligence.
This suspension is necessary to protect taxpayer rights, strengthen internal discipline, and ensure the integrity of our audit processes. We take every complaint seriously, and any misuse of authority, harassment, or irregularity has no place in the Bureau.
To lead the reform efforts, I have instructed the creation of a Technical Working Group on LOA and MO Integrity and Audit Reforms. The group is tasked with evaluating existing procedures, identifying operational and systemic vulnerabilities, recommending revised LOA protocols, and integrating digital safeguards and uniform audit standards.
Our goal is to create processes that are predictable, evidence-based, technology-driven, and fair. These systems are meant to protect taxpayers while helping the Bureau perform its mandate efficiently.
I cannot overemphasise President Ferdinand R. Marcos Jr.’s directive for the BIR to continue meeting revenue targets while strengthening service delivery for workers, small business owners, and all taxpayers who rely on predictable and transparent audit processes.
The overarching directive of the President when I assumed office is to ensure efficient and fair revenue collections.
