Tax Alert No. 27 [Revenue Memorandum Circular (RMC) No. 77-2022 dated 30 May 2022]

Suspension by the Bureau of Internal Revenue Effective 30 May 2022 of All Pending Letters of Authority/Mission Orders as of 30 May 2022 and Submission of lnventory Thereafter

The Commissioner of Internal Revenue has issued RMC No. 77-2022 suspending all field audit and field audit operations covered by Letters of Authority/Mission Orders relative to examinations and verifications of taxpayers’ books of accounts records, and other transactions until further notice. 

The service of Assessment Notices, Warrants, and Seizure Notices should still be effected. However, no new Letters of Authority/Mission Orders shall be further issued. 

Under RMC No. 77-2022, no written orders to audit and/or investigate taxpayers' internal revenue tax liabilities shall be issued and/or served, except in the following cases:

• Investigation of cases prescribing on or before 31 October 2022;
  
• Processing and verification of estate tax returns, donor's tax returns, capital gains tax returns (CGT) and withholding tax returns on the sale of real properties or shares of stocks together with the documentary stamp tax (DST) returns related thereto;
  
• Examination and/or verification of internal revenue tax liabilities of taxpayers retiring from business;
  
• Audit of National Government Agencies (NGAs), Local Government Units (LGUs) and Government Owned and Controlled Corporations (GOCCs) including subsidiaries and affiliates; and
  
• Other matters/concerns where deadlines have been imposed or under the orders of the Commissioner of lnternal Revenue.
  

Taxpayers may still voluntarily pay their known deficiency taxes without the need to secure authority from concerned Revenue Officials. 

You may access the full version of this Advisory through the BIR website.