RMO No. 62-2010: Prescribes the supplemental guidelines on the electronic issuance of Letters of Authority and related audit policies and procedures

Key points

1. Manual issuance discontinued. Starting July 1, 2010, manual issuance of LAs and Tax Verification Notices (TVNs) stops for investigating offices under the Regional Offices, the Large Taxpayer Service, the Enforcement Service and the Task Forces and Special Teams authorized to audit.
2. Cases covered by eLAs. These include mandatory cases below the 2010 Audit Program thresholds for RDOs, claims for refund or credit of Excise Tax under Title VI, and claims for erroneous or double payment of taxes. They also include taxpayers retiring from business or undergoing reorganization with gross assets of P= 1,000,000.00 up to P= 3,000,000.00, and other cases where TVNs were previously authorized.
3. Unused forms. Unused LA and TVN forms held by the listed officials and offices are surrendered to the Chief, Accountable Forms Division (AFD) within five (5) days from effectivity. Each head transmits a certified true copy of the last issued LA or TVN and a transmittal list, and the Assistant Commissioner, Inspection Service receives copies within three (3) days from the AFD’s receipt.
4. Conversion of manual LAs. Manually prepared LAs covering 2009 tax returns, and all TVNs under the 2010 Audit Program for RDOs, are converted to eLAs through LAMS within ten (10) working days from effectivity. Other offices enter their manually issued LAs and TVNs into LAMS in the same period.
5. Effect on taxpayers. Taxpayers holding manual LAs or TVNs for taxable year 2009 do not entertain a Revenue Officer unless replaced by an eLA. The BIR requires surrender of the manual LA or TVN and service of the replacement eLA even if the 2009 deficiency tax was already paid.
6. Memorandum of Assignment and approvals. A Memorandum of Assignment with a system-generated number is issued through LAMS for reassignment due to resignation, retirement or transfer, return of cases by the reviewing office, referral to another investigating office, and protested or reinvestigation cases. The Regional Director approves all eLA requests through LAMS.

Who is affected

• Investigating offices under the Regional Offices, Large Taxpayer Service and Enforcement Service
• Task Forces and Special Teams
• Taxpayers holding manual LAs or TVNs for taxable year 2009

Deadlines and effectivity

• Manual LA and TVN issuance discontinued starting July 1, 2010
• Unused forms surrendered within five (5) days from effectivity
• Conversion to eLAs within ten (10) working days from effectivity