LOA Spot Check: Validating The LOA

 As featured on PhilStar:  LOA spot check: Validating the LOA

In the age of information and artificial intelligence, it is common to be skeptical of information and documents you come across online and in real life, especially when it comes to business and taxes. A common question for taxpayers is: “How will they know whether the Letter of Authority (LOA) they receive is legitimate?” This is a valid concern, especially for taxpayers who are unfamiliar with the tax audit process and the format of official documents issued by the Bureau of Internal Revenue (BIR).

A LOA is the document that initiates the tax audit process by designating the Revenue Officer and Group Supervisor authorized to examine the taxpayer’s books of accounts, records, and other relevant documents for a specific taxable period. As court cases have described, a valid assessment requires a valid LOA.

Part of the reforms introduced in 2026 to address this concern is the “LOA Verifier” feature on the BIR’s website chatbot, REVIE. Revenue Memorandum Circular (RMC) No. 5-2026 clarified that the “LOA Verifier” feature allows taxpayers to input details in the LOA to check whether it matches LOAs issued by the bureau. REVIE will display the term “LOA FOUND” if a match exists, or “LOA NOT FOUND” if there is no match to the LOA details (e.g. taxpayer identification number, registered name and LOA case number).

If the LOA cannot be found through REVIE’s search, the RMC directs taxpayers to email the official BIR email address at contact_us-LOA@bir.gov.ph for validation of the LOA. The email should contain a copy of the LOA, along with the details mentioned therein and the issuing office indicated on the face of the LOA. Per the RMC, a response is expected within three (3) working days.

This feature will prove useful for taxpayers moving forward. However, as it is only a tool, taxpayers should still be aware of the markers of a valid LOA or an electronic Letter of Authority (eLA) provided under Revenue Memorandum Order (RMO) No. 44-2010.

1. Primarily, the name, designation, and electronic signature of the approving BIR official shall be reflected in the LOA/eLA. The approving official depends on the office.
2. The names of the revenue officers assigned to the case shall be printed on the LOA/eLA, and only those officers are authorized to serve it.
3. The tax types and taxable period covered by the audit shall be reflected in the LOA/eLA, and the basis for the audit shall be indicated.
4. The LOA/eLA must also contain a notation requesting the taxpayer to verify the validity of the LOA/eLA with the authorized BIR official at the address and contact information provided therein.
5. The serial number shall be system-generated, while the date shall reflect the date of printing.
6. There shall be no manually written character, notation, or erasure.

Note that RMO No. 1-2026 has added the requirement that a LOA/eLA shall prominently bear the mandatory label: “FULL EXAMINATION OF BOOKS OF ACCOUNTS AND OTHER ACCOUNTING RECORDS”. Revenue Memorandum Circular No. 14-2026 clarifies that LOAs issued prior to the effectivity of RMO No. 1-2026 and not subject to replacement are not required to bear this label.

Under the Single Instance Audit Framework introduced in 2026, taxpayers shall be subject to one LOA/eLA per taxable year, covering all applicable internal revenue tax types. In cases of fraud, however, one LOA/eLA may cover several years.

Staying informed about recent reforms and verification tools is essential for taxpayers navigating the audit process. By understanding the requirements and features of a valid LOA, individuals and businesses can better protect themselves and ensure compliance with tax regulations.