REVENUE MEMORANDUM CIRCULAR NO. 38-2013 issued on May 3, 2013 clarifies the implication of Legal Petition Notices (LPN)/Declarations and similar documents on the audit/assessment process.

     The normal process and/or procedures related to audit/investigation arising from electronic Letters of Authority (eLA) issued will not be suspended notwithstanding the receipt of LPN pertaining to the case. Moreover, the BIR National Office shall no longer entertain any LPN questioning the validity and enforceability of the eLA duly issued by the concerned Regional Director for the audit of taxpayer within the region inasmuch as the issue has already been clarified under Revenue Memorandum Circular No. 6-2013. Thus, there shall be no impediment on the investigation of the taxpayer’s internal revenue tax liabilities and the eventual recommendation for an issuance of Subpoena Duces Tecum, if warranted, in accordance with Revenue Memorandum Order Nos. 45-2010 and 88-2010.

     Correspondingly, upon receipt of the Preliminary Assessment Notice or Formal Letter of Demand and Final Assessment Notice, the taxpayer is given 15 or 30 days, as the case may be, to rebut the assessment upon his compliance with requirements of filing a protest pursuant to Revenue Regulations No. 12-99. Thus, any LPN, declaration or any similar document protesting the assessment addressed to the Commissioner or any official in the National Office without the issuance of a Final Decision on Disputed Assessment from the Regional Office shall be considered premature and invalid.

     Taxpayers should ensure that the tax agents/practitioners whom they choose to engage are accredited with the BIR. Taxpayers are also forewarned to be more circumspect in scrutinizing the credibility and competence of the consultants and the veracity of the contents of the LPN/Declaration or any document before affixing their signature therein since these documents will not gain merit and may lead to adverse consequences, such as the filing of the necessary charges in court.