The Bureau of Internal Revenue (BIR) has temporarily paused the issuance of BIR LOA (Letter of Authority) through RMC No. 107-2025 to businesses. The pause is intended to support the agency’s effort to improve the audit process.
BIR is now conducting a comprehensive review of its policies and procedures to fix gaps, remove inconsistencies, and strengthen safeguards in the audit process. The suspension was issued on November 24, 2025, and will remain in effect until lifted by the BIR Commissioner.
A BIR LOA (Letter of Authority) is a document that allows auditors to examine a business’s books & records, and other related transactions. Audits are a normal part of running a business, and with proper support, the whole process becomes much easier to understand and handle.
The BIR aims to make future audits more evidence-based, transparent, and fair for taxpayers by temporarily pausing the process.
Why Digital Records Matter
Keeping your business records digital can make a big difference when it comes to BIR LOAs. Here’s why:
- Keeping accurate records protects you and makes it easier to prove your compliance during a business audit.
- Having organized records helps auditors and business owners see the same information clearly and with transparency.
- Having a system makes it faster to store, retrieve, and share records when needed.
- When records are digital and up-to-date, businesses can feel more confident that audits will be fair. It’s important to have peace of mind when running a business.
Electronic tax services like Taxumo streamline the tax process and give you full transparency over your records, helping ensure your filings are accurate.
How Businesses Can Prepare For Future Audits
Use the BIR LOA pause to get your tax records in order. Turn this suspension into an opportunity to get ready for future audits, making this fairer and more predictable for you. Digital records keep compliance clear, accurate, and transparent for both your business and auditors.
For you to learn how to keep your tax records in place, feel free to check out our FREE onboarding session here: https://calendly.com/consultnow/onboarding