RMO No. 08-2006: Prescribes the guidelines and procedures in the implementation of the Letter of Authority Monitoring System (LAMS)

Key points

1. Blank LA forms. Unused blank LA forms held by the listed investigating offices are surrendered to the OACIR-LTS, OACIR-ES, ORD or Project Manager upon roll-out of LAMS. Those officials are responsible for requisitioning blank LA forms from the Accountable Forms Division.
2. Case status. A case stays Open until a Termination Letter or an approved Tax Credit Certificate or Tax Refund Notice is issued. LAs whose taxpayers cannot be located are classified as Cancelled, not Closed. If a taxpayer with an Open case moves districts, the case in the old district is cancelled and the new RDO continues under a newly issued LA noted This cancels LA No.
3. One LA per taxpayer, tax type and period. Only one LA is issued for the same taxpayer, tax type and period, except where an earlier LA covered a specific tax type only and a later one covers all internal revenue taxes. The CIR decides which LA prevails when two or more are issued, and the other is cancelled. No new LA is issued where deficiency taxes were already paid or assessed under a previous LA, except in fraud cases.
4. Revalidation. If an audit cannot be completed in the prescribed period, the RO may request revalidation of the LA. Only one revalidation is allowed, with a progress report noted by the Group Supervisor and approved by the head of the investigating division or office.
5. Protested cases. TVNs issued on protested cases carry the notation Reinvestigation of the Tax Case per LA No. with its date. Protested cases under re-investigation are not assigned to the RO who handled the original investigation.
6. Data encoding. Upon roll-out, the concerned offices encode data on LAs issued from August 26, 2002, whether signed, spoiled or cancelled. Issuing offices update the status of signed LAs, and the manual List and Status of LAs Issued continues to be submitted to the Audit Information and Tax Exemption and Incentives Division until full confidence in LAMS is established.

Who is affected

• LTAID I and II, LTDO, NID, RDOs, SID and Task Forces
• Revenue Officers handling LAs

Deadlines and effectivity

• LAs issued from August 26, 2002 are encoded upon roll-out of LAMS