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RMO No. 05-2009: Prescribes the policies and guidelines in the issuance of Letters of Authority by the various BIR investigating offices

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Summary

RMO No. 05-2009 prescribes the policies and guidelines for issuing Letters of Authority (LA) by the various BIR investigating offices.

Key points

  1. Primary jurisdiction. The investigating office where the taxpayer is registered or which has specific jurisdiction over the taxpayer audits that taxpayer for a given period. These are the Revenue District Offices, LT Audit and Investigation Divisions I and II, and the LT District Offices in Makati and Cebu.
  2. Exceptions. Cases with prima facie evidence of tax fraud, and cases under the Run After Tax Evaders (RATE) Program, go to the National Investigation Division (NID) or the Regional Special Investigation Divisions (SIDs).
  3. Fraud determination. The NID or SID sends the case through the ACIR, Enforcement Service, to the DCIR of the Legal and Inspection Group (LIG). The DCIR-LIG evaluates it and, if prima facie fraud exists, recommends it to the Commissioner for final evaluation. The National Office Tax Fraud Committee under Revenue Special Order No. 5-2008 is dissolved.
  4. Effect on existing Letters of Authority. If the Commissioner approves, the Enforcement Service prepares the LA, and any LA the investigating office issued for the same period is automatically cancelled. Revenue Officers stop work on the case, and an RDO that has not yet issued an LA may not issue one for that period.
  5. If the Commissioner does not approve. The report and evidence go back through the DCIR-LIG to the appropriate investigating office under the primary jurisdiction rule.
  6. Duplicate LAs and collections. Duplicate or multiple LAs issued before the Order for one taxpayer and period are elevated to the Office of the Commissioner, whose decision is final and executory. Collections from NID or SID tax fraud and RATE investigations are credited to the office with primary jurisdiction.

Who is affected

  • BIR investigating offices
  • Taxpayers under audit or investigation

Summary by Tax Resources PH. It is not a substitute for the full text of the issuance or professional advice.

Copies of BIR issuances are hosted here for reference. For the official version, check bir.gov.ph. Summaries by Tax Resources PH are not a substitute for the full text or professional advice.