The authority, records and questions to check under the consolidated audit rules.
A letter from the Bureau of Internal Revenue can send a small-business owner straight to the filing cabinet, then to the accountant. Which records are being requested? Which tax year is involved? Has the same period already been examined? These are sensible questions to ask before making assumptions about what the letter means.
The BIR's consolidated audit program, contained in Revenue Memorandum Order 22-2026, was issued in August and received renewed news coverage this weekend. It brings together rules on selecting cases, assigning examiners, requesting records and reviewing findings. Its promises of more consistent treatment need to show up in the actual handling of taxpayers' cases. Here are five places to look when reading a notice and discussing it with the professional helping you respond.