Can a memorandum of assignment be considered a valid LOA to authorize a Revenue Officer to audit a taxpayer?

• A. NO. A Revenue Officer must act pursuant to a Letter of Authority issued by the Revenue Regional Director to validly examine a taxpayer and perform assessment functions.
• B. YES. A memorandum of assignment suffices to authorize audits.
• C. The memorandum is valid if notarized by a notary public.
• D. LOA is not required for audits.

Answer: (A)

The essential point is that formal authorization to audit a taxpayer must come from a Letter of Authority issued by the Revenue Regional Director. This document specifically empowers a Revenue Officer to examine the taxpayer and perform assessment functions, defining the scope, taxpayer, and period of the audit. A memorandum of assignment does not confer that level of legal authority; it may delegate tasks internally but is not the recognized instrument to authorize audits. Even if a memorandum is notarized, that does not make it valid authority for examination and assessment. And stating that such authorization is not required conflicts with the established process. Therefore, only the Letter of Authority provides the proper, legally sufficient grant of audit power.