After reform talks, BIR readies audit restart

The Bureau of Internal Revenue (BIR) is moving closer to resuming tax audits after consulting the private sector on a sweeping set of audit reforms, following the suspension of Letters of Authority (LOAs) in November 2025.

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In a public-private consultation held on Jan. 21 under the BIR Partnership with the Multi-Sectoral Group (BIR-PMSG), the agency presented proposed reforms and new guidelines that will govern the conduct of audits once operations restart.

The discussion was led by the Technical Working Group Review Committee on Assessment Integrity and Audit Reform (TWGRC-AIAR), headed by Deputy Commissioner Marissa O. Cabreros.

At the center of the reform package is the adoption of a single instance audit framework, under which a taxpayer will generally be subject to only one electronic Letter of Authority (eLA) per taxable year for all internal revenue taxes, subject to defined exceptions.

The draft order also provides for the consolidation of multiple eLAs issued to the same taxpayer for the same taxable year into a single audit authority. This consolidation will be done automatically, with taxpayers given the option to request non-consolidation within set deadlines.