On November 24, 2025, the Bureau of Internal Revenue released RMC 107-2025, a circular that immediately placed all field audits and field operations on hold.

No ongoing fieldwork.
No new audit visits.
No extensions or revalidations of existing Letters of Authority (LOAs).

It’s a major move, and depending on your situation, it might work in your favor.

This isn’t a scare story. It’s not legalese, either.
This is a clear, honest look at what the circular means for businesses, and why paying attention right now matters.

1. What the LOA Freeze Really Means

If you’ve ever dealt with a long audit, you know the feeling, the back-and-forth, the waiting, the uncertainty. Many businesses have LOAs that have stayed alive only because they were repeatedly extended.

With RMC 107-2025, all of that stops.

• No revalidations
• No extensions
• No reviving old LOAs

And here’s the important part:

The prescriptive period for the BIR to issue an assessment keeps running.
The clock does not pause just because field operations are suspended.

So if an LOA was already nearing its deadline, this suspension could be the moment it naturally lapses.

That’s not loophole-hunting.
That’s simply how the timelines work under the law.

2. The Issue With Waiver Requests

During the suspension, some taxpayers have shared that they received calls encouraging them to sign a Waiver of the Defense of Prescription.

This is something you should approach with care.

A waiver:

• Extends the BIR’s time to assess you
• Removes your protection based on expiration
• Gives the BIR back the time they can’t use right now because of the suspension

In other words, signing a waiver may undo the advantage that RMC 107-2025 unintentionally gives taxpayers.

Waivers are powerful documents.
If someone asks you to sign one, pause and fully understand what you’re agreeing to. You have every right to ask questions before making that decision.

3. Why This Suspension Can Actually Benefit Businesses

This circular doesn’t just freeze audits, it changes what you can do during the break.

a. Some long-standing assessments may naturally expire

If the prescriptive period runs out during the suspension, and no extension is allowed, the LOA may lose its legal footing.

b. You get valuable time to clean up your books

This is a good moment to:

• Update your accounting records
• Reconcile accounts
• Prepare documentation
• Fix any compliance gaps

When audits resume, you’ll be in a stronger position.

c. Administrative processing may move faster

With field teams temporarily inactive, BIR offices often have more bandwidth for:

• Certifications
• Clearances
• Administrative filings

It’s not guaranteed, but in many cases, it does result in quicker processing.

4. What You Should Do Right Now

While the suspension is active:

• Be cautious with any waiver request
• Avoid signing documents that affect deadlines unless you understand the full impact
• Review the status of any existing LOAs
• Use this time to strengthen your compliance

You don’t need panic.
You just need awareness, and the right timing.

A Final Word: Credibility Matters

RMC 107-2025 is one of the most meaningful administrative changes this year. It shifts timelines, affects assessments, and creates opportunities for taxpayers to put their affairs in order without pressure.

At Bong Corpuz & Co. CPAs, our goal is simple:
To give you clear, honest guidance you can trust.
No jargon. No fear tactics. No shortcuts, just sound advice based on the rules as they are written.

If you want to understand how this circular specifically affects your business, our team is ready to help.