PH suspends BIR field audits to address taxpayer concerns

Insider Spotlight

  • Finance officials halt all Bureau of Internal Revenue field audits.
  • Suspension responds to taxpayer concerns over Letters of Authority and Mission Orders.
  • Review aims to strengthen integrity, discipline, and taxpayer protection.


The Department of Finance on Monday ordered the immediate and temporary suspension of all Bureau of Internal Revenue (BIR) field audits and related operations, following mounting concerns from taxpayers over the issuance of Letters of Authority (LOAs) and Mission Orders (MOs).

In a statement released on the afternoon of Monday, Nov. 24, 2025, Finance Secretary Frederick Go said the pause reflects the administration’s commitment to protecting taxpayers and ensuring discipline within the agency.

“We hear the people. We hear your concerns and are immediately acting on them. The people deserve better,” he said.

Why it matters

The suspension signals a decisive government response amid complaints of potential misuse of audit authority and aims to rebuild trust in one of the country’s most critical revenue-collecting agencies.

Driving the news

BIR Commissioner Charlito Mendoza said the halt covers all audit-related activities across the Bureau, 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,” he said.

Finance Secretary Frederick Go and Internal Revenue Commissioner Charlito Mendoza give a briefing Monday afternoon to announce the temporary halt to field tax audits./Photo from BIR's Facebook page

The move is grounded in Revenue Memorandum Circular 107-2025 and was issued after what Mendoza described as “extensive internal consultations” in his first week in office.

The exceptions

Only urgent or legally required cases will continue, including active criminal investigations, one-time transactions, audits nearing prescription within six months, refund claims requiring audit, and immediate actions involving taxpayers flagged by verified intelligence.

The bigger picture

Mendoza said the suspension is meant to protect taxpayer rights and strengthen internal discipline. “Any misuse of authority, harassment, or irregularity has no place in the Bureau,” he noted.

To advance reforms, Mendoza ordered the creation of a technical working group for letters of authority and mission order integrity and audit reforms. The body will review protocols, identify systemic vulnerabilities, and introduce digital safeguards and uniform audit standards.

What’s next

Reforms will focus on predictable, technology-driven, and evidence-based processes that uphold professionalism and transparency—aligned, Mendoza said, with President Marcos’ directive to ensure “efficient and fair revenue collections” while meeting targets.  —Daxim L. Lucas |Ed: Corrie S, Narisma

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Tuesday, 25 November 2025
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