The Bureau of Internal Revenue (BIR) has issued Revenue Memorandum Circular (RMC) 107-2025, dated Nov. 24, 2025, ordering the suspension of all ongoing field audits and related operations until further notice from the Commissioner.
This directive covers activities such as issuing Letters of Authority (LOA), Mission Orders (MO), examinations, and verification of taxpayers’ books of accounts, records, and transactions. No revalidation, extension, replacement, or supplementary LOA and MO shall be issued during the suspension period under the following exceptions.
However, the following circumstances are
the exceptions:
1. Investigation of cases prescribing within six months from the date of the Order;
2. Processing and verification of estate returns, donor’s tax returns, capital gains tax returns, and withholding tax returns on the sale of real properties or shares of stocks, together with the documentary stamp tax returns related thereon;
3. Examination or verification of internal revenue tax liabilities of taxpayers retiring
from business;
4. LOAs/MOs necessary for active criminal probes conducted by duly authorised enforcement units through verified intelligence reports, inter-agency referrals, third-party data validation, or risk-scoring anomalies that require immediate audit action where delay prejudice the government’s case;
5. Claims for refund where ethe issuance of an LOA is statutorily required; and
6. Other matters/concerns where deadlines have been imposed or under the orders of
the Commissioner.
The agency will conduct a comprehensive review of audit-related policies and procedures, starting with an inventory of all pending, unserved, expired, revalidated, or supplementary LOAs and MOs. All relevant BIR offices, committees, and task forces must submit this inventory to the Commissioner within 15 working days from the effective date.
The Technical Working Group and Review Committee on LOA Integrity and Audit Reforms is instructed to examine existing policies, identify operational and systemic vulnerabilities, and recommend a revised, integrity-driven LOA issuance protocol incorporating digital safeguards and uniform audit standards. These recommendations must be submitted within the timeframe set by the Commissioner.
All internal revenue officers are mandated to strictly enforce the directive within their respective jurisdictions, which takes effect immediately.
Please be guided accordingly.
Source:
P&A Grant Thornton
Certified Public Accountants