November 8, 2023
REVENUE MEMORANDUM ORDER NO. 1-2024
SUBJECT : Further Amending Revenue Memorandum Order No. 6-2023 Prescribing the Updated and
Consolidated Policies, Guidelines and Procedures for BIR Audit Program
TO : All Internal Revenue Officials/Officers and Others Concerned
I. OBJECTIVE
This Order is hereby issued:
1. To include as part of Mandatory Audit those taxpayers who failed to pay taxes declared on tax returns filed through Electronic Filing and Payment System (eFPS) facility of the Bureau; cSaATC
2. To amend the time frame for the submission of reports of investigation of Office Audit cases prescribed in Revenue Memorandum Order (RMO) No. 6-2023; and
3. To reiterate policies on handling pending audit cases of recently classified/enlisted Large Taxpayers.
II. AMENDMENTS
1. Item III.A.1 of the same RMO is hereby amended to include as one of the Mandatory Cases to be covered by eLA the audit/investigation of taxpayers who consistently failed to pay/remit the corresponding taxes due reflected in the tax returns
filed through eFPS or who later filed an amended tax returns reflecting a decrease/no tax due. By "consistently," we mean taxpayer incurred such violation for at least three (3) times in any given period. This is to enhance voluntary compliance, at the same
time, decrease future accumulation of delinquent taxes/accounts receivable emanating from tax returns electronically filed but taxes due thereon remain unpaid/unremitted. (Selection Code: EFPS).
2. Item IV.C.6 of the same RMO, prescribing the time frame for the submission of report of investigation of cases covered by eLA, other than replacement eLA, is likewise amended, as follows:
Case Classification No. of Days
Cases covered by eLAs 180 days for Regional cases/240 days for LT
other than replacement cases/120 days for OAS/90 days for LTVAU and
eLA VATAS from date of the eLA
Further, the counting of the number of days to complete audit as prescribed in the same Item of the RMO, shall be suspended when the investigating RO requested for the issuance of Subpoena Duces Tecum (SDT) or an Exchange of Information (EOI). The
reckoning date for the suspension shall be on the date of receipt of request by the concerned office, and shall only be lifted when the reply has been forwarded to the requesting RO: CHTAIc
Concerned BIR Office
Requests for issuance of SDT Legal Division/Office of the Assistant
Commissioner-Large Taxpayers
Service
Requests for exchange of Exchange of Information Unit of the
information provision for taxes International Tax Affairs Division
covered by tax treaty
To prevent the issuance of jeopardy assessments as well as to ensure that the Bureau is not deprived of its right to assess and collect the right amount of tax, the procedures in the issuance of SDT within two (2) working days from receipt of request as
prescribed under Item No. III.3.5 of RMO No. 10-2013, as amended by RMO No. 8-2014 must be strictly observed by the concerned office to compel taxpayers to submit or present the required books, records and documents.
3. Item IV.G.2.b of RMO No. 6-2023, is likewise amended to read as follows:
"In case the taxpayer has transferred its business registration to another Revenue District Office (RDO), or the taxpayer has been enlisted/delisted as large taxpayer, the continuation of audit cases which has already started prior to transfer or its
enlistment/delisting as large taxpayer, shall be conducted by the old handling BIR Office.
In the same manner, all protests against deficiency tax assessment notices [e.g., Preliminary Assessment Notice (PAN), Formal Letter of Demand/Final Assessment Notice (FLD/FAN), and Final Decision on Disputed Assessment (FDDA)] issued against
transferred or newly enlisted/delisted large taxpayers, shall be handled by the old concerned BIR Office that issued such notice until settlement/termination of the case. Unprotested tax assessments that matured into "delinquent accounts" shall be
referred to the new concerned BIR Office where the taxpayer is registered.
Any collection therefrom shall be credited to the Office that conducted/concluded the audit upon notification to the Large Taxpayers Service (LTS) or Regional Office, as the case may be, for proper crediting by the Revenue Accounting Division.
Thereafter, all eLAs/TVNs regardless of the taxable year shall be issued by the new BIR Office having jurisdiction over the taxpayer's registration." cHDAIS
III. REPEALING CLAUSE
All provisions of revenue issuances/memoranda inconsistent herewith are hereby repealed, amended or modified accordingly.
IV. EFFECTIVITY
This Order shall take effect immediately.
(SGD.) ROMEO D. LUMAGUI, JR.
Commissioner of Internal Revenue
