Revenue Memorandum Order No. 06-2026

Amendments and Supplemental Guidelines Governing the Implementation of Revenue Memorandum Order (RMO) No. 1-2026

I. BACKGROUND

Following the issuance of RMO No. 1-2026, certain concerned and implementation matters have been identified with respect to its application, particularly on the consolidation of Electronic Letters of Authority (eLAs), including its scope, effects, and procedural implications.

Accordingly, this RMO is hereby issued to prescibe amendments, supplemental procedures, and clarificatory guidelines to RMO No. 1-2026 to address such concerns and ensure the consistent, uniform, and orderly implementation of the consolidation framework and related audit reforms provided therein.

II. AMENDMENTS

1. The following dates in RMO No. 1-2026 are hereby amended:

2. Annex “A” of RMO is hereby revised as follows:

a.) Item No. 7 under 1. Mandatory Case*, a. To be covered by Electronic Letter of Authority (eLA) shall now read as follows:

Revised Annex A of RMO No. 1-2026, reflecting all the amendments above, is attached in this Order as Annex A.

III. RULES ON CONSOLIDATION OF ASSESSMENT

A. ABSOLUTE PROHIBITIONS

1. No Consolidation at Final Decision on Disputed Assessment (FDDA) Stage – No consolidation shall be allowed if any case has reached the FDDS stage. Cases that have reached the FDDA stage must proceed independently.
2. No Consolidation of Final and Executory Final Assessment Notice (FAN) – No consolidation shall be allowed if a FAN has already become final, executory, and demandable. Once finality attaches, the assessment shall no longer be disturbed.
3. No Consolidation of Cases Involving FAN Stage and Cases Prior to Issuance of Preliminary Assessment Notice (PAN) – Cases at the FAN stage shall not be consolidated with cases that remain at stages prior to the issuance of a PAN, whether with or without a Notice of Discrepancy (NOD). This rule is intended to prevent undue delay in the resolution of cases at the FAN stage, in view of the remedies available to the taxpayer under Section 228 of the National Internal Revenue Code of 1997, as amended (Tax Code), including the right to appeal to the Court of Tax Appeals.
4. Exception: Allowed FAN-Level Consolidation – Consolidation involving any FAN-stage case may be allowed inly if:
   • a. The FAN was validly issued and properly served;
   • b. The protest period is still running, or a valid protest has been timely filed;
   • c. The assessment has not yet become final and executory;
   • d. All safeguards under Section III(C) of this Order are complied with; and
   • e. Where a protest has already been filed, the Consolidated FAN is issued before Section 228 of the Tax Code.
     
     Failure to satisfy any of the foregoing conditions shall preclude consolidation.

B. CONSOLIDATION CASES

The following rules shall guide the Revenue Officers in determining whether consolidation may be effected. If the mandatory safeguards under Section III(C) of this Order are not fully complied with, the cases shall proceed independently in accordance with their respective procedural stages.

1. Consolidation Prior to FAN Stage

2. Consolidation at FAN Stage

3. Cases with FDDA

C. MANDATORY SAFEGUARDS FOR FAN-LEVEL CONSOLIDATION

Consolidation involving any FAN-stage case shall not proceed unless ALL of the following are secured:

1. Written Conformity to Consolidation (Taxpayer Undertaking) Applicable to Consolidated NOD, PAN, and FAN
   
   The taxpayer must expressly agree in writing that:
   • a. The identified audit case(s)/eLA(s) covering the same taxable period may be consolidated pursuant to RMO No. 1-2026;
   • b. The taxpayer voluntarily conforms to the issuance of a consolidated notrice that shall supersede the specifically identified prior notice(s) solely for consolidation purposes under RMO No. 1-2026;
   • c. Fresh response and/or protest periods shall run only upon proper service and receipt of the consolidated/superseding notice, in accordance with existing due process rules; and
   • d. The conformity id procedural only, does not constitute an admission of liablility, and does not waive substantive defenses or legal remedies available under law.
     
     The prescribed remplate for the Written Conformity to Consolidation is provided in Annex B of this Order.
     
2. Waiver of Prescription
   
   The Waiver of Prescription pursuant to Sections 203 and 222 of the Tax Code:
   • a. Must strictly comply with the requirements and form guidance under RMO No. 14-2016, Revenue Memorandum Circular No. 141-19, and related issuances;
   • b. Must be signed by the taxpayer or a duly authorized representative, provide that the authorized representative must show a written authority which shall form part of the official record;
   • c. Must clearly specify the taxable period covered and a definite expiration date; and
   • d. While the taxpayer shall have the duty to retain a copy of the submitted waiver, a copy of the duly executed waiver showing BIR acceptance should form part of the docket.
     
     A template of the Waiver of Prescription is hereto attached as Annex C.
3. Standard Supersession Clause at the NOD/PAN/FAN Level
   
   If a Consolidated NOD/PAN/FAN is to be issued:
   • a. Any previously issued NOD/PAN/FAN covering the same taxable period shall be formally superseded for purposes of consolidation.
   • b. The Consolidated NOD/PAN/FAN must clearly identify the prior NOD(s)/PAN(s)/FAN(s) being superseded and state that it shall govern the audit moving forward.
   • c. The Consolidated NOD/PAN/FAN must contain the following clause:
     
     “This Consolidated [NOD/PAN/FAN] supersedes the [NOD(s)/PAN(s)/FAN(s)] dated ____ duly received on ___ day of _____,2026, solely for purposes of consolidation under RMO No. 1-2026, without prejudice to substantive rights and remedies available under law. This Consolidated [NOD/PAN/FAN] shall constitute the operative [NOD/PAN/FAN] for the taxable period concerned.”
   • d. Proper service must be effected in accordance with applicable regulations.
     
4. Proper Service
   
   All consolidated notices must strictly comply with service rules under Revenue Regulations No. 12-99, as amended. Failure in service may result in nullity of the notices.
   
5. No Regression Rule
   
   Consolidation should not result in the reversal of a case to an earlier procedural stage in the statutory due process sequence. Accordingly:
   • a. A case that has reached the FAN stage shall not reverted to the PAN or NOD stage;
   • b. A case that has reached the PAN stage shall not be reverted to the NOD stage; and
   • c. A validly served notice shall not be disregarded, nullified, or replaced except through a formal and properly documented supersession (or withdrawal, where appropriate) effected prior to finality.
     
     Attached herewith as Annex D is the Consolidation Compliance Checklist, which shall guide Revenue Officers in determining whether consolidation may be effected.

IV. SUPPLETORY RULES ON VAT REFUND APPLICATIONS

VATAS and LTAVAU may continue to process VAT refund applications already received only until May 29, 2026.

This Section is issued as a suppletory provision to clarify jurisdictional authority during the transition period and to ensure orderly turnover and uninterrupted processing of VAT refund applications.