30/07/2026
3 ways to cancel BIR LOA in 2026 🤔
The Bureau of Internal Revenue (BIR) can examine taxpayers' books of accounts and other accounting records through issuance of the Letter of Authority (LOA). It empowers BIR tax agents or examiners to check whether or not taxpayers are paying correct taxes and to recommend issuance of tax assessments.
However, the BIR LOA is not absolute. It can be challenged. . . and cancelled.
HERE'S 3 WAYS TO CANCEL BIR LOA:
âś… Lack of jurisdiction
Not all BIR offices can conduct tax audit investigation of books of accounts and other accounting records of taxpayers. If your business is registered under the jurisdiction of Revenue Region No. 4, the Regional Director of Revenue Region No. 5 cannot issue LOA against your company on the ground of not having jurisdiction over your business.
Likewise, the BIR issued audit program for small business under RMO 32-2018, as amended. If your company's annual sales falls within its threshold, the investigating office Assessment Division can conduct tax audit investigation of your books and records through a LOA issued by the office of Regional Director.
However, in practice, some LOAs are defective or null and void because this audit sales threshold for small business has not been met. Thus, a taxpayer subject to this tax audit investigation should file a valid protest to the office of the Regional Director to invalidate the LOA immediately.
Accordingly, if the LOA is cancelled, the corresponding tax assessments are also cancelled. No LOA, No assessment, No payment. . . legally.
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âś… No basis of audit
Under RMO 6-2023 and RMO 1-2026, only taxpayers who meet the non-compliance risk through selection criteria shall be issued LOA. Thus, it is very important for the taxpayers to know the reason, based on audit selection criteria, why his company received a LOA from the BIR.
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However, if you check carefully the contents of your BIR LOA, you will see this statement:
"Pursuant to Sec. 6(A) and 10(C) of the National Internal Revenue Code of 1997, as amended"
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That is not basis of the audit. Under RMO 44-2010, the basis of audit is the selection code description provided by BIR audit program.
We strongly recommend to taxpayers to write a letter to the office of the BIR Commissioner of Internal Revenue (CIR) to request the basis of audit, under audit program, to determine the reason for issuance of LOA to your company. And if there is none, your remedy is to file a written protest to cancel the BIR LOA on the ground of due process violations committed for its issuance.
âś… Unauthorized audit
Only few BIR officials are authorized to issue LOA. Generally, the office of the Regional Director (RD) is authorized to issue LOA. However, some BIR officials are also authorized through CIR's Revenue Delegation Authority Order (RDAO).
Example is when the BIR official who signed and issued the LOA is the Assistant Regional Director (ARD). ARD is not the same with RD. Hence, we strongly recommend to taxpayers to determine the authority first of the BIR official who signed and issued the BIR LOA which their company received. You can visit the BIR website to check the list of BIR RD who has jurisdiction over your place of business.
WARNING: The temptation of settling or cancelling the BIR LOA through bribe is only an illusion. Because the BIR corrupt Revenue Officers will come back again to your company to issue another LOA for different taxable year and to ask for higher bribe. Sooner or later, your business will suffer and close.
P.S. Do you want to cancel your company's BIR LOA without bribing?​
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âś… We will study your BIR LOA case
âś… Meet online to discuss BIR LOA cancellation startegies
âś… Prepare protest letter for submission to BIR
âś… Follow up through email
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