RMO No. 6-2023: Prescribes Updated and Consolidated Policies, Guidelines and Procedures for BIR Audit Program

Key points

1. All taxpayers are audit candidates. Audits are covered by electronic Letters of Authority (eLAs) or Tax Verification Notices (TVNs), as applicable.
2. Mandatory cases covered by eLAs. These include claims for refund or credit of excise tax and income tax (except income tax claims of Job Order personnel), tax clearance requests above ₱ 3,000,000.00 gross sales or ₱ 8,000,000.00 gross assets upon retirement, certain returned or transferred cases, certain ONETT cases, and policy cases directed by the Commissioner.
3. Mandatory cases covered by TVNs. These include tax clearance requests with gross sales of ₱ 1,000,000.00 up to ₱ 3,000,000.00 or total assets of ₱ 3,000,000.00 up to ₱ 8,000,000.00 upon retirement, VAT refund claims, income tax refunds of Job-Order personnel, and refund claims from erroneous or double payment due to system error.
4. Priority audit cases. These are cases selected electronically by the IRIS-Audit Module using set criteria, plus cases handled by the VAT Audit Section, Office Audit Section and Large Taxpayers VAT Audit Unit. A Regional Director or ACIR-LTS may also select cases manually, with CIR approval, under selection code PCIR.
5. Procedures in the Order. The Order also sets the rules on eLA/TVN issuance, case assignment, audit conduct and reports, review and termination letters, protests, monitoring, replacement eLAs and administrative sanctions.

Who is affected

• BIR audit offices and officers
• Taxpayers requesting tax clearance or filing refund claims