RMO No. 36-2000: Prescribes an Office Audit Program in the Assessment Division of Regional Offices

Key points

1. Coverage. The Program covers audit of tax returns of individual and corporate taxpayers, estates and trusts within the Region for taxable years 1997, 1998 and 1999. The order of priority is specified in the Order.
2. How the audit is done. Office Audit is done without field investigation, only by Revenue Officers (Assessment) of the Office Audit Section in the Assessment Division of Regional Offices. The Regional Director may request office audit in far-away Revenue District Offices, subject to approval of the Assistant Commissioner, Assessment Service (ACIR, AS).
3. Letters of Authority. All office audit cases are covered by Office Audit Letters of Authority. Correspondence letters or similar orders for audit examination are strictly prohibited. One Letter of Authority is issued for each taxable year under audit, covering all internal revenue tax liabilities, which are investigated simultaneously.
4. Succeeding year and same officer. A taxpayer cannot be audited for the immediate succeeding taxable year unless there is a written justification and prior approval of the ACIR, AS. The same Revenue Officer/Group Supervisor cannot audit the same taxpayer for the immediately succeeding audit period.
5. Review of reports. The Regional Director gives final review and approval of all office audit reports.

Who is affected

• Individual and corporate taxpayers, estates and trusts within the Region

Deadlines and effectivity

• Taxable years 1997, 1998 and 1999 covered