How to Appeal a BIR Decision to the CTA: Deadlines, Petition and Common Mistakes
Updated: 1 day ago
Short answer: Generally, you can take a BIR assessment to the Court of Tax Appeals (CTA) only after a valid protest against the Final Assessment Notice. If the BIR denies the protest, usually in a Final Decision on Disputed Assessment (FDDA), file a petition for review within 30 days from receipt. If the BIR does not decide within 180 days, appeal within 30 days after the 180 days end, or wait for the decision. The 30 days cannot be extended, and an appeal does not by itself stop collection.
What is an FDDA, and when can you appeal it?
An FDDA is the BIR's written decision on your protest against the Formal Letter of Demand and Final Assessment Notice (FLD/FAN). The Commissioner or a duly authorized representative issues it. It must state the facts and the law it rests on, or it is void, and it must say that it is the final decision (RR No. 12-99, as amended by RR No. 18-2013).
The CTA reviews the Commissioner's decisions on disputed assessments, refunds and "other matters" under the Tax Code. It also reviews his inaction where the Tax Code sets a period to act, and that inaction counts as a denial (Section 7(a)(1) and (2), RA No. 1125, as amended by RA No. 9282). Any taxpayer adversely affected may appeal (Section 11, RA No. 1125, as amended).
In an assessment case, there are three ways in (Section 228, NIRC; RR No. 12-99, as amended):
The Commissioner denies your protest. Appeal within 30 days from receipt.
A duly authorized representative, such as a Regional Director, denies it. Within 30 days, either appeal to the CTA or ask the Commissioner to reconsider.
The BIR does not decide within 180 days. Appeal within 30 days after the 180 days end, or wait for the decision.
Which BIR letters count as a decision, and which do not?
A FAN worded as a final decision. The FAN said, "This is our final decision," and invited an appeal within 30 days. The Supreme Court held that the BIR could not object when the taxpayer went straight to the CTA without a protest (Allied Banking Corp. v. Commissioner of Internal Revenue, G.R. No. 175097, February 5, 2010).
A demand letter. A letter demanding payment while the protest was pending was the Commissioner's final decision, so the 30 days ran from its receipt (Oceanic Wireless Network, Inc. v. Commissioner of Internal Revenue, G.R. No. 148380, December 9, 2005).
A Final Notice Before Seizure. It was treated as the Commissioner's decision, appealable to the CTA (Commissioner of Internal Revenue v. Isabela Cultural Corp., G.R. No. 135210, July 11, 2001).
A Notice of Discrepancy or a PAN. Neither is the assessment. Answer them, but the road to the CTA opens only after the FLD/FAN. See our PAN guide and BIR audit process guide.
The Supreme Court has told the BIR to state clearly when its action is final (Allied Banking; Oceanic Wireless). So treat any demand for payment or seizure warning received while your protest is pending as a possible final decision, and count 30 days from receipt.
Why must you protest before going to the CTA?
The steps you take before the BIR are your administrative remedies, sometimes called administrative relief. They come first because the CTA acquires jurisdiction only after the taxpayer disputes the assessment and the Commissioner rules on it (Oceanic Wireless) or lets the 180 days pass (Section 228, NIRC).
A valid protest is filed within 30 days from receipt of the FLD/FAN. It must state its nature (reconsideration or reinvestigation), the date of the assessment notice and the law it relies on, or it is void. For a reinvestigation, supporting documents are due within 60 days from filing (Section 228, NIRC; RR No. 12-99, as amended). See our FAN protest guide.
Without a valid protest, the assessment becomes final, executory and demandable, and its validity or correctness can no longer be questioned on appeal (Commissioner of Internal Revenue v. Hambrecht & Quist Philippines, Inc., G.R. No. 169225, November 17, 2010). Two narrow openings remain. The CTA may still decide whether the BIR's right to collect has prescribed, as one of the "other matters" within its jurisdiction (Hambrecht & Quist). And a void assessment never becomes final, as the FAN protest guide explains.
How do you count the 30 days?
Count from the day you received the decision, not the date printed on it. The day of receipt is not counted. In one case, a decision received on August 4, 2005 had to be appealed by September 3, 2005 (Fishwealth Canning Corp. v. Commissioner of Internal Revenue, G.R. No. 179343, January 21, 2010).
Then apply the rule that fits (Section 228, NIRC; RR No. 12-99, as amended):
Denial by the Commissioner. File with the CTA within 30 days. A motion for reconsideration with the Commissioner does not stop the 30 days (Fishwealth).
Denial by a duly authorized representative. Within 30 days from receipt, appeal to the CTA or ask the Commissioner to reconsider. No reinvestigation is allowed at that stage, and the Commissioner looks only at the issues in the decision. If the Commissioner denies it, you have 30 days from receipt of that denial to go to the CTA.
No decision within 180 days. The 180 days run from the filing of the protest for a reconsideration, or from your submission of documents within the 60 days for a reinvestigation. You may appeal within 30 days after the 180 days end, or wait for the decision and appeal within 30 days from receiving it. The two options are mutually exclusive. If you choose to appeal and file late, the assessment becomes final (Rizal Commercial Banking Corp. v. Commissioner of Internal Revenue, G.R. No. 168498, April 24, 2007). If you choose to wait, you are not prejudiced (Lascona Land Co., Inc. v. Commissioner of Internal Revenue, G.R. No. 171251, March 5, 2012).
A caution on the Commissioner route. Asking the Commissioner to reconsider does not start a new 180-day period; the 180 days still count from the filing of your protest. In one case, the taxpayer asked the Commissioner to reconsider a Regional Director's decision issued after the 180 days had run, then went to the CTA when the Commissioner did not act. The CTA en banc held that the petition was premature and that the CTA had no jurisdiction over it; his only option was to wait for the Commissioner's decision (Commissioner of Internal Revenue v. Ruben U. Yu, CTA EB No. 2352, Resolution, 2023). This is a CTA ruling, not a Supreme Court decision, but it shows this route can mean an open-ended wait.
The 30-day period is jurisdictional, and courts cannot extend it (RCBC; Rule 8, Section 3(a), Revised Rules of the Court of Tax Appeals or RRCTA).
What must the petition for review contain, and what do you pay?
The appeal is a petition for review filed with the CTA and heard by one of its Divisions (Section 11, RA No. 1125, as amended; Rule 4, Section 3(a), RRCTA). Under Rule 6, Section 2 of the RRCTA, the petition must:
allege the facts showing that the CTA has jurisdiction;
state the complete facts briefly;
summarize the issues;
give the reasons the decision should be reviewed;
be verified (sworn to) and carry a certification against forum shopping (a sworn statement that you have not filed another case on the same issues); and
attach a clearly legible duplicate original or certified true copy of the decision appealed from.
Since the 30 days are jurisdictional, set out the key dates with proof: receipt of the FLD/FAN, filing of the protest, submission of documents, receipt of the decision or the end of the 180 days, and filing of the petition.
Pay the docket and other lawful fees when you file. The Clerk of Court will not receive the petition without proof of payment (Rule 6, Section 3, RRCTA).
Also follow the CTA's current rules on electronic filing and electronic copies of pleadings, issued as En Banc resolutions (such as Resolution No. 8-2024, as amended). Check the latest version on the CTA's website before you file.
Plan your evidence before you file. For the burden of proof, the formal offer of evidence and the independent CPA, see our guide to burden of proof and evidence at the CTA.
Does an appeal to the CTA stop BIR collection?
Not by itself. An appeal does not suspend the payment, levy, distraint or sale of property to satisfy the tax (Section 11, RA No. 1125, as amended; Rule 10, Section 1, RRCTA). No court may issue an injunction to restrain the collection of national internal revenue taxes (Section 218, NIRC). The relief comes from the CTA itself:
File a motion to suspend collection, with the petition or at any stage of the case. It must be verified, state the facts and grounds, and attach affidavits and documents (Rule 10, Sections 3 and 4, RRCTA).
Show the risk. The CTA may suspend collection when collection may jeopardize the interest of the Government and/or the taxpayer (Section 11, RA No. 1125, as amended).
Prepare the security. The CTA may require a cash deposit of the amount claimed or a surety bond of not more than double that amount (Section 11, RA No. 1125, as amended; Rule 10, Section 6, RRCTA).
The deposit or bond may be dispensed with or reduced when the BIR's method of collection is not sanctioned by law, and the Supreme Court told the CTA to hold a preliminary hearing on that question (Spouses Pacquiao v. Court of Tax Appeals, G.R. No. 213394, April 6, 2016).
What happens after you file?
The CTA issues summons. The Commissioner answers within 15 days from service, and the BIR forwards its case records within 10 days after the answer (Rule 6, Section 5, RRCTA).
The case goes through pre-trial and trial, where each side presents its evidence.
A Division decides. A motion for reconsideration or new trial may be filed within 15 days from notice (Section 11, RA No. 1125, as amended; Rule 15, Section 1, RRCTA).
The losing party may then go to the CTA en banc and, after that, the Supreme Court.
For each stage, see our CTA litigation roadmap.
What mistakes most often lose a CTA appeal?
Skipping the protest. No disputed assessment and no ruling means no jurisdiction (Oceanic Wireless).
Asking the Commissioner to reconsider his own denial. The 30 days keep running (Fishwealth).
Ignoring a letter that counts as the decision, such as a demand letter or final notice before seizure (Oceanic Wireless; Isabela Cultural).
Counting the 180 days from the wrong date. For a reconsideration, count from filing; for a reinvestigation, from submission of documents.
Filing late after choosing the inaction route, or counting on an extension. The assessment becomes final (RCBC).
A defective filing: no verification, no certification against forum shopping, no copy of the decision, unpaid docket fees, or a missing electronic copy.
Frequently asked questions
What happens after 180 days with no BIR decision?
Appeal within 30 days after the 180 days end, or wait for the decision and appeal within 30 days from receipt. You must choose one (RCBC; Lascona).
Can I ask the CTA for more time to file?
No. The 30 days are jurisdictional and cannot be extended (RCBC).
Do I have to pay the assessment before appealing?
Neither Section 11 of RA No. 1125 nor the CTA rules make payment a condition for filing the appeal. But the appeal does not stop collection, so ask the CTA to suspend it if needed.
Can I still go to the CTA if I missed the protest deadline?
Generally, no. The assessment becomes final, and its correctness can no longer be questioned on appeal (Hambrecht & Quist). The narrow exceptions are a void assessment and the separate question of whether the BIR's right to collect has prescribed. A compromise may still be possible; see compromise settlement vs. tax protest.
Sources
National Internal Revenue Code of 1997, as amended, Sections 218 and 228
Republic Act No. 1125, as amended by Republic Act No. 9282 (March 30, 2004) and Republic Act No. 9503 (June 12, 2008), Sections 7 and 11
Revenue Regulations No. 12-99, as amended by RR No. 18-2013 (November 28, 2013)
Revised Rules of the Court of Tax Appeals, A.M. No. 05-11-07-CTA (November 22, 2005), as amended on September 16, 2008 and February 10, 2009, Rules 4, 6, 8, 10 and 15
CTA En Banc Resolution No. 8-2024, as amended
Allied Banking Corp. v. Commissioner of Internal Revenue, G.R. No. 175097, February 5, 2010
Oceanic Wireless Network, Inc. v. Commissioner of Internal Revenue, G.R. No. 148380, December 9, 2005
Commissioner of Internal Revenue v. Isabela Cultural Corp., G.R. No. 135210, July 11, 2001
Commissioner of Internal Revenue v. Hambrecht & Quist Philippines, Inc., G.R. No. 169225, November 17, 2010
Fishwealth Canning Corp. v. Commissioner of Internal Revenue, G.R. No. 179343, January 21, 2010
Rizal Commercial Banking Corp. v. Commissioner of Internal Revenue, G.R. No. 168498, April 24, 2007
Lascona Land Co., Inc. v. Commissioner of Internal Revenue, G.R. No. 171251, March 5, 2012
Spouses Pacquiao v. Court of Tax Appeals, G.R. No. 213394, April 6, 2016
Facing a BIR audit, assessment or tax dispute?
Aureada CPA Law Firm's CPA-lawyers handle BIR audits, assessment protests, refund claims and Court of Tax Appeals cases from our Makati and Lucena offices. See our tax services.
You can also email info@aureadalaw.com or call (02) 8812-9990.
Related guides
This article is general information as of its publication date, not legal advice, and does not create a lawyer-client relationship. For advice on your situation, consult a lawyer.
Comments