Suspension of Audit of 1990 and 1991 Internal Revenue Tax Liabilities

June 11, 1992 REVENUE MEMORANDUM ORDER NO. 23-92 SUBJECT : Suspension of Audit of 1990 and 1991 Internal Revenue Tax Liabilities TO : All Regional Directors, Revenue District Officers and Others Concerned This Office has received reports that on-going audit and investigation of internal revenue tax liabilities for 1990 and 1991 which were authorized on a selective basis are erroneously perceived as being undertaken by revenue officers for purposes not germane and appropriate to the objectives of the assessment function of this Bureau. Considering that the post-election atmosphere and the forthcoming change in administration are conducive to unfounded suspicions and perceptions that examinations of tax returns are motivated politically or otherwise and in order to maintain the image of the Bureau of Internal Revenue that it regularly performs its various functions purely for the purpose of implementing revenue laws and to dispel any baseless suspicion that post-election tax audits are being conducted for purposes other than to collect revenue, all examinations and/or audits of internal revenue tax liabilities for 1990 and 1991 which were heretofore authorized are hereby temporarily and indefinitely suspended until such time as this Office may deem appropriate to resume such activities. Accordingly, no such examination of internal revenue tax liabilities should be conducted or continued until further notice and authorization from the undersigned. During the period of suspension, all Revenue District Officers and Chiefs of Assessment Branches shall, in the form prescribed in ANNEX A of Revenue Memorandum Order No. 36-90, submit and distribute to the indicated offices the List of Taxpayers selected for Office/Field Audit not later than fifteen (15) days from date of selection . The requirements in RMO 36-90 prescribing the maximum number of taxpayers to be selected, segregated and listed for assignment to a revenue officer assigned at the Office Audit Section or Revenue District Office to perform office audit or field audit, respectively as of May 30, 1992, shall be applicable in listing 1991 tax returns to be audited. With respect to 1990 internal revenue tax liabilities for which Letters of Authority have already been issued beyond the limits prescribed in the said RMO, a list of the taxpayers for whom LAs were issued should likewise be submitted not later than June 30, 1992. aisa dc Strict compliance with the requirements of this RMO shall be the responsibility of both the Regional Directors and the Revenue District Officers who are supposed to manage the operations of their respective revenue regions and districts within the parameters of prescribed policies. Authorization to resume tax audits will be given only to RDOs and Chiefs, Office Audit Sections, who have shown compliance with this RMO. This order shall take effect immediately. (SGD.) JOSE U. ONG Commissioner of Internal Revenue