Tax Alert

(Revenue Memorandum Circular No. 127-2020 published on December 4, 2020)

This Tax Alert is issued to inform all concerned on the suspension of field audit and field operations of the Bureau of Internal Revenue (BIR) starting December 15, 2020 until January 7, 2021 relative to examinations and verifications of taxpayers’ books of accounts, records and other transactions.

No field audit, field operations, or any form of business visitation in execution of Letters of Authority/Audit Notices or Mission Orders should be conducted from the period starting December 15, 2020 until January 7, 2021. Moreover, no written orders to audit and/or investigate taxpayers’ internal revenue tax liabilities shall be served except in the following cases:

• Investigation of cases prescribing on or before April 15, 2021;
• Tax evasion cases;
• Processing and verification of estate tax returns, donor's tax returns, capital gains tax returns and withholding tax returns on the sale of real properties or shares of stocks together with the documentary stamp tax 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 of GOCCs;
• Monitoring of privilege stores (tiangge); and
• Other matters/concerns where deadlines have been imposed or under the orders of the Commissioner of lnternal Revenue.

Service of notices to avail the Tax Amnesty on Delinquencies (TAD), Estate Tax Amnesty (ETA) and Voluntary Assessment and Payment Program (VAPP) are not covered by the suspension. Also, taxpayers may still voluntarily pay their known deficiency taxes without the need to secure authority from concerned revenue officials.