04/09/2026
The new BIR Audit Program is a significant step toward building a fairer and more accountable tax system. By strengthening risk-based audits, standardizing procedures, and reinforcing accountability, the Bureau is not only protecting taxpayer rights but also ensuring that assessments are backed by facts and law.
This reform advances transparency, predictability, and trust in government processes which are key elements for a healthier business environment and stronger compliance culture.
๐๐๐ฅ ๐ฅ๐ข๐๐๐ฆ ๐ข๐จ๐ง ๐ก๐๐ช ๐๐จ๐๐๐ง ๐ฃ๐ฅ๐ข๐๐ฅ๐๐ , ๐ฆ๐ง๐ฅ๐๐ก๐๐ง๐๐๐ก๐ฆ ๐ฅ๐๐ฆ๐-๐๐๐ฆ๐๐ ๐๐จ๐๐๐ง๐ฆ ๐๐ก๐ ๐๐๐๐ข๐จ๐ก๐ง๐๐๐๐๐๐ง๐ฌ
The Bureau of Internal Revenue (BIR), under Commissioner Charlito Martin R. Mendoza, has released the new BIR Audit Program, further institutionalizing its audit reforms under a uniform nationwide audit framework for risk-based taxpayer selection, standardized audit procedures, and stronger accountability.
Under Revenue Memorandum Order (RMO) No. 22-2026, signed by Mendoza and issued on August 24, 2026, the BIR consolidated its previous audit programs and built on the reforms introduced under RMO No. 1-2026 earlier this year, establishing uniform policies, guidelines, and procedures for tax audits across investigating offices nationwide.
โThis new BIR Audit Program strengthens both sides of the processโfairness for taxpayers and accountability within the BIR. Audits must follow clear rules and proper procedures, and our revenue officers must be able to support the assessments they issue with facts and law,โ Commissioner Mendoza said.
For taxpayers, the new BIR Audit Program reinforces the Single-Instance Audit Framework, generally limiting audit authority to one electronic Letter of Authority per taxpayer per taxable year, subject to specified exceptions. Audits are also limited to the tax types and taxable period covered by the authority issued.
For Priority Cases, taxpayers are selected through system-assisted, risk-based processes using verifiable data. To reduce discretion, taxpayer identities are kept anonymized during selection and assignment, as far as practicable, while workload and eligibility controls govern case distribution.
The Program also provides separate rules for Mandatory Cases and institutionalizes the Revalida or โAudit of Auditors,โ under which audit reports and assessments may undergo technical and quality review to determine whether findings are supported by facts and law and whether due process was observed.
Revenue officers and officials must follow prescribed audit procedures, timelines, documentation, and monitoring requirements. Unauthorized audits, improper case classification, unjustified delays, and other violations may result in administrative sanctions and other liabilities under existing laws and rules.
The strengthened audit framework advances the BIR DARES agenda on Audit Reform and Accountability and Digital and Data Transformation. It also supports the Bureauโs broader taxpayer-centric approach by using data and clearer controls to focus audit resources on higher-risk cases while strengthening safeguards for taxpayers.
The reforms support President Ferdinand R. Marcos Jr.โs direction to restore trust in government and improve public service, and Finance Secretary Frederick D. Goโs drive to improve the ease of doing business by making government processes more predictable and reducing unnecessary uncertainty for taxpayers and investors.
โWhen we began our comprehensive audit reforms at the start of the year, we committed to clearer rules, stronger safeguards, and greater accountability in the conduct of audits. This new BIR Audit Program delivers on that commitment and advances our taxpayer-centric approach to tax administration. Fair treatment of taxpayers and firm enforcement of the tax laws have to go together. A credible audit system requires both,โ Commissioner Mendoza said.
Read the full Revenue Memorandum Order here:https://bir-cdn.bir.gov.ph/BIR/pdf/RMO%20No.%2022-2026_redacted.pdf
