Suspension of Tax Audit, Examination, Investigation and/or Verification

April 30, 2001 REVENUE MEMORANDUM CIRCULAR NO. 20-01 SUBJECT : Suspension of Tax Audit, Examination, Investigation and/or Verification TO : All Internal Revenue Officers, Employees and Others Concerned Pursuant to Revenue Memorandum Order No. 10-2001 dated April 24, 2001, all field operations of the Bureau relative to tax audit, examination and verification of taxpayers' books of accounts and records including other audit-related transactions have been temporarily suspended from the effectivity of the said RMO. Accordingly, no letters of authority, tax verification notices, mission orders, or any written orders to audit and/or investigate internal revenue taxes shall be issued or pursued for internal revenue tax purposes, except for the following: 1. Investigation of cases prescribing in year 2001; 2. Service of Assessment Notices for cases prescribing in the year 2001; 3. Processing and verification of estate tax returns, donor's tax returns and tax returns (capital gains tax returns, expanded withholding tax returns and documentary stamp tax returns) covering the sale of real property or shares of stocks, prior to the issuance of Tax Clearance and/or Certificate Authorizing Registration; 4. Examination and/or verification of internal revenue tax liabilities of taxpayers retiring from business; 5. Verification and processing of all claims for refunds and/or tax credits; 6. Requests for reinvestigation/reconsideration (protested tax cases); and 7. Cases approved by the Commissioner or other duly authorized officials for audit of identified large taxpayers, tax fraud cases, and policy cases in the National Office, as well as the audit of Local Government Units (LGUs) in the Regional Office. The foregoing suspension shall remain in force until further notice. All internal revenue officers and others concerned are enjoined to give this Circular as wide a publicity as possible. (SGD.) RENE G. BAEZ Commissioner of Internal Revenue