27/01/2026
๐ฐThe Bureau of Internal Revenue (BIR) has issued the following orders and circulars relative to the lifting the suspension of all tax audit and field operations previously imposed under RMC No. 107-2025.
๐ Revenue Memorandum Order (RMO) No. 1-2026
๐ฐRMO No. 1-2026 prescribes the revised policies and procedures for tax audits following the lifting of the suspension previously imposed under RMC No. 107-2025.
Key highlights of the new guidelines include:
๐ถ Single-Instance Audit Framework: As a general rule, taxpayers will be subject to only one Electronic Letter of Authority (eLA) for a given taxable year, covering all applicable internal revenue tax types, including Value-Added Tax (VAT).
๐ถ Anonymized Selection and Assignment: To reduce discretion-related risks, the BIR is implementing an anonymized process where taxpayer identities remain concealed during the initial selection and officer assignment phases.
๐ถ Mandatory Audit Labels: Audit instruments must prominently display specific labels defining their scope: "Full Examination" for eLAs, "Limited Authority" for Mission Orders (MO), and "Limited Scope" for Tax Verification Notices (TVN).
๐ถ Standardized Audit Checklists: Revenue Officers are now required to use a standardized checklist of documents for all audits to minimize repetitive requests and ensure transparency.
๐ถ Integration of Task Forces: Audit functions previously performed by specialized task forces, such as the Run After Fake Transactions (RAFT) Task Force, are concluded and absorbed by regular BIR offices to align with the new framework.
๐ถ System-Assisted Selection: The issuance of new eLAs will be governed by system-assisted taxpayer selection based on objective risk parameters and centralized approval by the Commissioner.
๐ถ These reforms aim to institutionalize transparency, uphold due process, and promote accountability across the tax assessment process.
๐ฐ Revenue Memorandum Circular (RMC) No. 8-2026
๐Effective immediately, the Bureau will resume the issuance of Electronic Letters of Authority (eLAs), Mission Orders, and Tax Verification Notices. The resumption also includes the continuation and completion of audit cases that were previously stayed.
๐All resumed field operations and assessments must now comply with the revised policies, controls, and procedures prescribed under RMO No. 1-2026. This move marks the conclusion of the review of audit processes and the implementation of new internal control mechanisms for the Bureau.
Source: BIR website
