[Ask The Tax Whiz] Can the BIR now issue new LOAs and MOs? 

Can the BIR issue new Letters of Authority (LOAs) and Mission Orders (MOs)?

Yes, while the issuance of LOAs and MOs were suspended by Revenue Memorandum Circular (RMC) No. 77-2022, this suspension was lifted on 21 November 2022 pursuant to RMC No. 148-2022.

Under RMC 148-2022, the newly appointed Commissioner of Internal Revenue, Romeo Lumagui, Jr., lifted the suspension on field operations of the Bureau of Internal Revenue. Thus, the BIR can now execute Letter of Authority/Audit Notices or Mission Orders as well as issue new LOAs and MOs. 

With the lifted suspension of BIR audit, the government expects that it would meet its 2022 revenue target of P2.438 trillion. As of the end of October this year,  the BIR’s collection already reached P1.919 trillion. 

“Strict compliance with the existing applicable rules and regulations of the Bureau on the issuance and implementation of LOAs and MOAs shall be observed,” added the BIR.

What is the significance of the lifting of the LOA and MO suspension?

The lifting of the suspension would undoubtedly trigger the issuance of multiple notices of tax audits to taxpayers as BIR examiners resume their investigations in full force. Knowing this, taxpayers should learn about the possible letters and notices that the BIR may issue. For instance, taxpayers should know that the issuance of LOAs and MOs gives the BIR the authority to audit a taxpayer. 

A Letter of Authority is a formal document issued by the BIR authorizing the inspection of the taxpayer’s books of accounts and other accounting documents for a certain tax type and during a certain taxable period. 

On the other hand, Mission Orders grant BIR Revenue Officers a more general authority. It allows them to carry out inventory-taking for the determination of tax liabilities, and to place any taxpayer under surveillance should they suspect the taxpayer of not paying the proper taxes.

Business owners and CEOs, in particular, should be aware of the various sorts of letters issued by BIR. Failure to respond to and understand these letters may result in penalties and other unwarranted charges.  – Rappler.com

If you have any questions or concerns about the letters being received by your company, Asian Consulting Group is offering consultation. Visit www.acg.ph or email consult@acg.ph