BIR has issued RMC No. 107-2025 on November 24, 2025 which orders the immediate and temporary suspension of all field audits and related field operations conducted by the BIR. This includes a halt to the issuance and implementation of new Letters of Authority (LOAs) and Mission Orders (MOs), which are the usual triggers for tax audits and examinations.

Under the Circular, the following are suspended:

  • Creation, approval, signing, serving of LOAs and MOs.
  • All ongoing field audits and examinations: review of books of accounts, verification of returns, site inspections, field investigations, audit-related fact-finding, etc.
  • Operations in all audit-related BIR units: Revenue District Offices, Large Taxpayer Service, VAT Audit Groups, Assessment Divisions, and other relevant divisions.

RMC 107-2025 does not suspend all BIR activity. Certain cases may still proceed, for example:

  • Cases whose prescription (statute-of-limitations) period runs out within six months.
  • Certain tax types, e.g., capital gains tax, estate/donor’s tax, withholding taxes, etc., especially if related to retirement/closing of business, or other special circumstances.
  • Criminal tax fraud investigations and other cases flagged as urgent or with legal mandates (including certain refund claims, tax-exempt estate/donor/OTX verifications, closing businesses).

In addition to this, no LOA or MO may be revalidated, extended, replaced or supplemented unless it falls under the stated exceptions. However, the RMC does not cover/suspend the filing and payment of taxes, deadlines for tax compliances, assessment periods or protest periods and other BIR administrative processes not related to field audits.

The RMC is also accompanied by the formation of a Technical Working Group (TWG) with the following objectives:

  • Review BIR audit protocols
  • Strengthen controls and integrity of LOA/MO issuance
  • Identify and correct systemic vulnerabilities
  • Develop standardized and technology-driven audit procedures
  • Improve transparency, predictability, and fairness in future audits

What are the practical implications for the taxpayers?

  • Reduced audit activity for now, except for cases under the exceptions
  • Opportunity to review and correct internal records, bookkeeping, and tax compliance
  • Businesses under active audit should verify if their case falls under the exceptions
  • Expect updated audit guidelines and potentially stricter protocols once audits resume

The suspension remains in effect until formally lifted by the Commissioner of Internal Revenue.