27/01/2026
BIR Lifts Audit Suspension; Tax Audits to Resume Under Reformed Rules
January 27, 2026
The Bureau of Internal Revenue (BIR) announced today the lifting of the suspension on tax audits, including the issuance of Letters of Authority (LOAs). The audit suspension, which began in November 2025, was imposed to address concerns on audit consistency, overlapping examinations, and alleged abuse of audit authority. According to the BIR, reforms have now been put in place to ensure fairness, transparency, and accountability in audit operations.
Key Highlights of the Reforms:
Single-Instance Audit Policy
Taxpayers will generally be subject to only one audit per taxable year, covering all internal revenue taxes. Multiple or overlapping audits for the same period will be avoided, with electronic LOAs consolidated where applicable.
Risk-Based and Data-Driven Audit Selection
Audit selection will now rely more on system-assisted, risk-based criteria, reducing discretionary targeting and promoting objectivity in the audit process.
Stronger Audit Safeguards
The BIR introduced stricter controls, including standardized audit procedures, enhanced documentation and supervisory review, and sanctions for revenue officers who violate audit protocols.
Stakeholder Confidence and Support
The BIR reported that business groups and private sector stakeholders expressed support for the new audit framework and raised no objections to the resumption of audit activities.
What This Means for Taxpayers
With the lifting of the suspension, tax audits will gradually resume, but under a more predictable and regulated environment. The BIR emphasized that the reforms aim to balance revenue collection with taxpayer protection, and to restore trust in the audit system. The resumption of audits forms part of the BIR’s broader reform agenda to modernize tax administration and strengthen institutional accountability.
Grajo and Associates affirms that it is fully prepared to assist taxpayers in navigating the resumption of audits under the new BIR framework. With established systems aligned with single-instance audits, risk-based compliance, and enhanced documentation standards, the firm stands ready to provide strategic guidance and audit defense support in line with the latest reforms.
