A BIR audit notice isn’t a document that people should fear receiving. In fact, it is just one of the ways on how the Bureau of Internal Revenue (BIR) sees to it that taxpayers pay correctly.
The audit program starts with the issuance of Letter of Authority (LA), Letter Notice (LN), or Tax Verification Notice (TNV). These authorizations empower a BIR personnel to audit a taxpayer’s books and records.
Upon receiving a BIR audit notice, you should panic. This is a program/process wherein taxpayers usually undergo. You may never know when irregularities were just unintentionally made, so you wouldn’t be totally liable for the findings. What you need to do upon receiving a BIR audit notice is to prepare the documents requested by the revenue officer. Documents may include tax returns, reports, and accounting records. There should be proper communication between the taxpayer and BIR as to which documents would be provided by the latter or the former.
If a taxpayer fails to submit the requirements, the BIR examiner may recommend the issuance of a Subpoena Duces Tecum (SDT) to the legal division of BIR. This is a document serving as a compliance notice for the required documents.
On the other hand, when required documents are submitted, the revenue officer then would conduct the audit. The findings of the investigation would be sent to BIR. A notice for an informal conference is sent to a taxpayer to inform him about the audit findings. A conference is set to discuss the deficiencies in the taxes as seen on the audit findings.
Receiving a BIR Audit Notice and undergoing the process surely isn’t an easy task. If you want to learn more about BIR Audit, join Mr. Ruperto Somera, former Director of Bureau of Internal Revenue, as he talks about “Top Secrets of Handling BIR Audit”. This event is set to happen on September 29, 2017, at the RCBC Plaza Makati.
For more information, visit https://powermaxph.com/new/.
