Question & AnswerQ&A (BIR REVENUE MEMORANDUM CIRCULAR NO. 38-2013)
Filing LPNs does not suspend or defer the audit or investigation process initiated under eLAs. The Bureau of Internal Revenue (BIR) will continue with the audit regardless of LPNs filed by taxpayers or practitioners.
No, the BIR National Office will no longer entertain LPNs questioning the validity and enforceability of eLAs, as their validity is already clarified under RMC No. 6-2013.
Upon receipt of the Preliminary Assessment Notice (PAN) or Formal Letter of Demand (FLD) and Final Assessment Notice (FAN), the taxpayer is given fifteen (15) or thirty (30) days respectively to file a protest and rebut the assessment pursuant to Revenue Regulations No. 12-99.
No, such LPNs or declarations are considered premature and invalid if sent before issuance of the FDDA by the regional office.
Taxpayers must ensure that their tax agents or practitioners are accredited with the BIR and must scrutinize their credibility, competence, and the veracity of any LPN, declaration, or document before signing, as filing invalid documents can lead to adverse consequences including charges in court.
Filing of protests against assessments is governed under Revenue Regulations No. 12-99.
The BIR can refuse to transact official business with tax agents/practitioners who are not accredited, pursuant to Section 9 of RR No. 11-2006 and RMC No. 6-2013.
Revenue Memorandum Order (RMO) Nos. 45-2010 and 88-2010 clarify the issuance of SDTs during audits where warranted.
The main purpose is to clarify the implications of Legal Petition Notices and similar declarations on the audit and assessment processes, and to prevent attempts to undermine the authority of the BIR.
Filing LPNs with inaccurate or false information may lead to adverse consequences such as the filing of necessary charges in court against the taxpayers or practitioners involved.