The Bureau of Internal Revenue (BIR) has launched a wide-ranging reform program that places audit reform and accountability at the core of its 2026 priorities, as the agency prepares to resume tax audits under tighter rules and stronger safeguards.

The five-point agenda, branded BIR D.A.R.E.S., was formally introduced during the BIR Directors’ Conference attended by regional directors from Luzon and officials of the Large Taxpayers Service. 

The program covers Digital and Data Transformation; Audit Reform and Accountability; Revenue Collection and Base Protection; Employee Empowerment and Welfare Promotion; and Service Excellence and Stakeholder Engagement. A second rollout for Visayas and Mindanao offices is scheduled later this month.

“BIR DARES reflects what we are already grappling with on the ground,” Mendoza said. “These are not abstract priorities. These are the real challenges we face, and these are the reforms we are choosing to confront.”

The Bureau suspended all issuances of new LOAs and halted all field audits in November 2025, following numerous allegations of misconduct. Senators JV Ejercito and Erwin Tulfo separately flagged alleged corruption within the BIR, with Tulfo alleging an agency-wide kickback scheme and calling for a Senate Bkue Ribbin Committee investigation.

To address these concerns, the agency created the Technical Working Group Review Committee on Assessment Integrity and Audit Reform, which is now finalizing policies governing the lifting of the suspension and the resumption of audits.

As part of its reforms to enhance accountability and transparency within its practices, the BIR will introduce a public LOA verification tool through its website chatbot REVIE, limit audits to one consolidated LOA per taxpayer per year, and abolish overlapping audit units and task forces. 

The agency will also revive the revalida or “audit-the-auditors” system to strengthen internal accountability.

“These reforms are being carefully designed to ensure that when audits resume, they do so under clearer rules, stronger safeguards, and better oversight,” Mendoza said.

Beyond audits, Mendoza added the BIR will accelerate the digitalization of tax services and adopt more risk-based enforcement, particularly for high-risk products such as vape, tobacco, and fuel. Employee welfare and professional development will also be emphasized to improve service delivery.

“This is about preparing the organization for what comes next,” Mendoza said. “The work being done now will define how we carry out our mandate moving forward.”