DoF halts all BIR field audits

The Department of Finance (DoF) announced on Monday the immediate and temporary suspension of all field audits and related operations of the Bureau of Internal Revenue (BIR). The suspension covers the issuance of Letters of Authority (LoAs) and Mission Orders (MOs) to protect taxpayers from potential abuse.

In a joint statement, DoF Secretary Frederick Go and BIR Commissioner Charlito Mendoza detailed the scope of the suspension. Mendoza said it 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.

Legally mandated cases

Exceptions will be made only for urgent or legally mandated cases such as active criminal investigations, one-time transactions, audits prescribed within six months, refund claims requiring audits, or immediate action involving 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,” Mendoza said.

BIR using LoAs as an extortion tool

The suspension comes amid allegations from Senators Erwin Tulfo and JV Ejercito, who accused the BIR of using LoAs as an extortion tool.

Ejercito claimed LoAs — documents authorizing BIR personnel to audit taxpayers — are being “weaponized” to fuel corruption, while Tulfo earlier called for a Senate Blue Ribbon Committee investigation into the Bureau.

Mendoza said the BIR has formed a Technical Working Group on LoA and MO Integrity and Audit Reforms.