Clarifications on the proper modes of service of eLAs

(Revenue Memorandum Circular No. 110-2020 issued on October 06, 2020)

This Tax Alert is issued to inform all concerned on the clarifications on the proper modes of service of an electronic Letter of Authority (eLA).

An eLA must be served to the concerned taxpayer by the Revenue Officers authorized to conduct examination of books of accounts of the taxpayer.

However, there are times when the concerned taxpayer or his authorized representative, or authorized officer in case of a non-individual taxpayer, could not be found in the registered address. Thus, the Bureau of Internal Revenue (BIR) clarified that the modes of service of assessment notices provided under Revenue Memorandum Order No. 40-2019 shall also apply to eLAs, as follows:

  1. Personal service

The eLA shall be served to the taxpayer by personally delivering a copy of the eLA at his registered or known address or wherever he may be found.

Personal or substituted service shall be done by the Revenue Officer (RO) assigned or any BIR employee as duly authorized for this purpose.

  1. Substituted service or by mail

In case personal service is not possible, the eLA shall be served either by substituted service or by mail.

  • Substituted service. This can only be resorted to when the party is not present at the registered or known address.
    • The eLA may be left at the party’s registered address, with his clerk or a person having charge thereof.
    • If the known address is a place where the party’s business activities are conducted, the eLA may be left with the clerk or with a person having charge thereof.
    • If the known address is a place of residence, the eLA may be left with a person of legal age residing therein.
    • If no person is found in the registered or known address or the taxpayer refuses to receive the eLA, the RO concerned shall bring a barangay official and two disinterested witnesses so that they may personally observe and attest to such absence or refusal. The original copy of the eLA shall be given to the barangay official.
  • Service by mail shall be done by sending copy of the eLA through
    • registered mail with an instruction to the postmaster to return the mail to the sender after 10 days, if undelivered;
    • reputable professional courier service; or
    • ordinary mail, if no registry or reputable courier is available.

For eLAs served through personal or substituted service, the date of receipt, name and signature of the person acknowledging receipt or barangay officials/witnesses, as applicable, shall be indicated at the back of the duplicate copy of the eLA.

Personal service shall be complete upon actual delivery of the eLA to the taxpayer or his representative. Service by registered mail is considered complete upon actual receipt by the taxpayer or after 5 days from the date of receipt of the first notice of the postmaster, whichever date is earlier. Service by ordinary mail is considered complete upon the expiration of 10 days after mailing.

Service to the tax agent/practitioner, who is appointed or authorized by the taxpayer, shall be deemed service to the taxpayer.