Received a BIR Letter of Authority? Here's What You Must Do Immediately

A Letter of Authority (LOA) from the Bureau of Internal Revenue (BIR) is not something to take lightly. It is a formal notice that the BIR is auditing your tax returns for a specific taxable year — and your response in the first few days can make or break the entire examination. Here is what you need to know.

What Is a Letter of Authority?

An LOA is an official document issued by a BIR Regional Director or the Commissioner of Internal Revenue, authorizing a Revenue Officer (RO) to examine a taxpayer's books of accounts and other accounting records. It is valid for 120 days from issuance, but can be revalidated once.

Verify the LOA's Authenticity First

Before complying with any request, verify that the LOA is genuine. You can check the BIR's eLA system or call the issuing RDO. A legitimate BIR audit does not require cash payments to the RO directly.

What Documents Will the BIR Require?

The Revenue Officer will typically request: books of accounts, official receipts and invoices, bank statements, contracts and agreements, payroll records, ITRs, VAT returns, and withholding tax returns for the covered period.

You have 30 days from the LOA's receipt to present these documents. Request an extension in writing if you need more time — do not ignore the deadline.

Your Rights During a BIR Audit

Under the Taxpayer's Bill of Rights, you have the right to: be represented by counsel or authorized agent, receive a complete audit report, contest findings through a Protest Letter, and avail of the compromise settlement procedure.

The Audit Process: From LOA to Assessment

If the RO finds deficiencies, the BIR issues a Preliminary Assessment Notice (PAN). You have 15 days to respond. If unresolved, a Final Assessment Notice (FAN) follows. You then have 30 days to file a formal protest.

Failure to protest within the 30-day period makes the assessment final and executory — meaning the BIR can enforce collection through distraint, levy, or judicial action.

Why You Need a CPA-Lawyer for a BIR Audit

A BIR audit is simultaneously a legal proceeding and an accounting exercise. At Quimson Seebok & Partners Law Office, our CPA-Lawyers have handled BIR audits across all major tax types. We review your records before submission, identify exposures, negotiate with the BIR, and defend you at every stage from PAN to the Court of Tax Appeals (CTA) if needed. Do not face the BIR alone. Book a consultation the moment you receive an LOA.