Bureau of Internal Revenue

The Bureau of Internal Revenue (BIR) issued Revenue Memorandum Circular (RMC) No. 127-2020, 2 December 2020, to circularize the suspension of all field audit and other field operations of the BIR relative to examinations and verifications of taxpayers' books of accounts, records and other transactions from 15 December 2020 to 7 January 2021.

No written orders to audit and/or investigate taxpayers' internal revenue tax liabilities shall be served except in the following cases:

• Investigation of cases prescribing on or before 15 April 2021;
• Tax evasion cases;
• Processing and verification of estate tax returns, donor's tax returns, capital gains tax returns and withholding tax returns on the sale of real properties or shares of stocks together with the documentary stamp tax returns related thereto;
• Examination and/or verification of internal revenue tax liabilities of taxpayers retiring from business;
• Audit of National Government Agencies (NGAs), Local Government Units (LGUs) and Government Owned and Controlled Corporations (GOCCs) including subsidiaries and affiliates of GOCCs;
• Monitoring of privilege stores (tiangge); and
• Other matters/concerns where deadlines have been imposed or under the orders of the CIR.

Service of Notices to avail the Tax Amnesty on Delinquencies (TAD), Estate Tax Amnesty (ETA) and Voluntary Assessment and Payment Program (VAPP) should still be effected. Also, taxpayers may voluntarily pay their known deficiency taxes without the need to secure authority from concerned Revenue Officials.

Attached is the full text of the issuance.

Revenue Memorandum Circular No. 127-2020