Request for Reconsideration vs. Reinvestigation: Which BIR Protest Should You File?

Executive Summary

After receiving a Formal Letter of Demand and Final Assessment Notice (FLD/FAN) from the Bureau of Internal Revenue, a taxpayer who disagrees with the assessment generally has 30 days from receipt to file an administrative protest.

That protest can take one of two forms:

Request for Reconsideration – the taxpayer asks the BIR to reevaluate the assessment based on records and evidence already submitted before the FLD/FAN was issued.

Request for Reinvestigation – the taxpayer asks the BIR to reevaluate the assessment using newly discovered or additional evidence that will be presented during the protest.

The distinction is important because the two remedies have different documentary requirements and affect how certain deadlines are counted. BIR guidance expressly defines reconsideration as relying on the existing record, while reinvestigation involves newly discovered or additional evidence.

Choosing between them should therefore not be treated as a matter of wording. The correct choice depends on what evidence the taxpayer needs to prove its case.

Reconsideration vs. Reinvestigation: The Basic Difference

Issue	Request for Reconsideration	Request for Reinvestigation
Basis of review	Existing records already submitted	Newly discovered or additional evidence
30-day protest deadline	Yes	Yes
Additional 60-day document deadline	Generally no	Yes
Best suited for	Legal, computational, or interpretative disputes already supported by the record	Cases requiring new documents, reconciliations, or evidence
Available after an FDDA at administrative appeal level	Reconsideration may be pursued with the CIR, subject to applicable rules	No reinvestigation after the FDDA stage

Revenue Regulations No. 18-2013 expressly provides that the 60-day supporting-document period applies to reinvestigation but not to reconsideration.

What Is a Request for Reconsideration?

A request for reconsideration asks the BIR to take another look at its assessment based on evidence that is already part of the audit record.

In simple terms, the taxpayer is saying:

“The documents are already there. Please reconsider your conclusion based on the existing evidence and the applicable law.”

This remedy may be appropriate where the dispute primarily involves a legal interpretation, computation, classification, or factual conclusion that can already be resolved using documents previously submitted to the BIR.

For example, the BIR may have disallowed an expense even though the supporting invoices and withholding documents were already submitted during the audit. The taxpayer may argue that the BIR misapplied the law or overlooked evidence already in the docket.

Because the protest relies on the existing record, the special 60-day deadline for newly discovered or additional documents does not apply to a request for reconsideration.

That does not mean reconsideration is easier.

The protest must still identify the assessment being challenged and explain the relevant facts, laws, regulations, or jurisprudence supporting the taxpayer's position. A defective protest can be treated as void.

What Is a Request for Reinvestigation?

A request for reinvestigation asks the BIR to reopen its evaluation because the taxpayer intends to submit newly discovered or additional evidence.

The taxpayer is essentially saying:

“The assessment should be reviewed again because additional evidence materially affects the findings.”

This may be appropriate when the taxpayer needs documents that were not previously part of the audit record.

Examples may include newly completed transaction reconciliations, additional supplier records, bank documents, contracts, confirmations, or other evidence necessary to explain the deficiency findings.

The key consequence is the 60-day rule.

A taxpayer who chooses reinvestigation must generally submit all relevant supporting documents within 60 days from filing the protest. If the taxpayer fails to do so, the assessment can become final for purposes of introducing that additional evidence.

This makes reinvestigation potentially more useful—but also more demanding.

Step-by-Step Guide: How to Choose the Correct BIR Protest

Step 1: Calendar the 30-Day Deadline First

Before deciding between reconsideration and reinvestigation, determine when the FLD/FAN was received.

Under RR No. 18-2013, the administrative protest must generally be filed within 30 days from receipt of the FLD/FAN.

If no valid protest is filed within that period, the assessment generally becomes final, executory, and demandable.

Do not spend so much time deciding which remedy to use that the protest deadline itself is missed.

Step 2: Identify Every Issue Being Assessed

Review the FLD/FAN tax by tax and adjustment by adjustment.

An assessment may involve income tax, VAT, withholding taxes, disallowed expenses, undeclared sales, unsupported input VAT, or several different issues at once.

The protest should address each issue the taxpayer intends to dispute.

RR No. 18-2013 warns that if a taxpayer protests only some issues, or fails to provide the factual and legal basis for certain disputed items, the assessment relating to the remaining issues may become final, executory, and demandable.

Step 3: Ask Whether the Existing Audit Record Is Enough

This is the central question.

If all the documents needed to prove the taxpayer's position were already submitted before the FLD/FAN, reconsideration may be sufficient.

If the taxpayer cannot adequately defend the assessment without presenting additional evidence, reinvestigation may be the more appropriate remedy.

The choice should follow the evidence not merely which option sounds more favorable.

Step 4: Confirm That the New Evidence Can Be Produced on Time

A taxpayer should not choose reinvestigation casually.

If additional evidence is necessary, determine immediately whether it can realistically be gathered, reviewed, reconciled, and submitted within the applicable 60-day period.

Reinvestigation may be strategically useful when records exist but require additional collection or reconciliation.

It becomes risky when the taxpayer has no clear idea what documents will be submitted or whether they can actually be completed within the deadline.

Step 5: Draft the Protest With Specific Factual and Legal Grounds

A proper protest should clearly state:

1. the date of the assessment notice;

   
   

2. whether the protest is a request for reconsideration or reinvestigation; and

   
   

3. the law, regulations, jurisprudence, and factual grounds supporting the protest.

   
   

If reinvestigation is chosen, the taxpayer should also specify the newly discovered or additional evidence intended to be presented. BIR guidance warns that a protest lacking the required information may be treated as void and without force and effect.

Which Remedy Is Better?

Neither remedy is automatically better.

A request for reconsideration can be efficient where the controversy is already fully documented.

For example, suppose the BIR assessed undeclared income because it interpreted a transaction as revenue, while the taxpayer's contracts and accounting records already submitted during the audit show that the amount was a refundable customer deposit.

If no new evidence is needed, reconsideration may allow the taxpayer to focus on why the BIR's interpretation of the existing record is incorrect.

A request for reinvestigation may be stronger where the existing audit record is incomplete.

Suppose the BIR disallowed PHP 4 million in expenses because several documents were unavailable during the field audit. After the FLD/FAN was issued, the company obtained archived supplier invoices, proof of payment, contracts, withholding certificates, and detailed reconciliations.

Because the taxpayer needs those additional documents to defend the deductions, reinvestigation may be more appropriate.

The correct question is therefore not:

“Which remedy gives me more time?”

It is:

“What evidence does my case actually require?”

Important Difference: The 180-Day BIR Review Period

The distinction between the two protests also affects the reckoning of the BIR's 180-day period for action.

For a request for reconsideration, the 180-day period is generally counted from the filing of the protest.

For a request for reinvestigation, the period is generally counted from the submission of the required supporting documents within the applicable 60-day period.

This becomes important because BIR inaction may eventually give the taxpayer procedural options involving the Court of Tax Appeals.

Taxpayers should therefore maintain a complete calendar showing not only the 30-day protest deadline but also the relevant filing dates, document-submission date, BIR action period, and any succeeding CTA deadline.

Risks of Choosing or Filing the Protest Incorrectly

Missing the 30-Day Deadline

This is the most serious risk.

A taxpayer who fails to file a valid protest within 30 days from receipt of the FLD/FAN generally allows the assessment to become final, executory, and demandable.

Choosing Reinvestigation but Missing the 60-Day Deadline

If the taxpayer requests reinvestigation but fails to submit the necessary additional evidence within the prescribed period, the taxpayer may lose the opportunity to dispute the assessment using those documents.

Filing a Generic Protest

A letter saying only “we disagree with the assessment” can be dangerous.

The taxpayer should identify the issues and provide specific factual and legal grounds.

A timely protest that fails to satisfy the substantive requirements may not protect the taxpayer.

Forgetting to Dispute One of Several Assessment Issues

A company may successfully challenge four adjustments but unintentionally leave a fifth one unanswered.

Under RR No. 18-2013, an undisputed issue or an issue for which the necessary factual and legal basis is not stated may independently become final and collectible.

What Happens After the BIR Decides the Protest?

The BIR may eventually issue a Final Decision on Disputed Assessment (FDDA).

If the taxpayer disagrees with an FDDA issued by the authorized BIR official, applicable rules may allow the taxpayer to either seek reconsideration before the Commissioner of Internal Revenue or proceed to the Court of Tax Appeals, subject to the applicable 30-day deadline.

Importantly, RR No. 18-2013 states that reinvestigation is no longer available at the administrative appeal stage after the FDDA.

This is another reason to determine early whether additional evidence is needed.

The FLD/FAN protest stage may be the taxpayer's critical opportunity to introduce that evidence through reinvestigation.

Practical Example: Reconsideration vs. Reinvestigation

Assume XYZ Corporation receives an FLD/FAN assessing PHP 7 million.

The first issue involves PHP 2 million in alleged undeclared revenue. XYZ had already submitted invoices, contracts, and accounting entries showing that the amount consisted of refundable advances rather than income.

That issue may potentially be addressed through reconsideration, because the relevant evidence is already in the BIR's possession.

The second issue involves PHP 3 million in disallowed expenses. During the audit, several supporting documents were missing. XYZ later obtains the original supplier records, proof of payment, and withholding certificates.

That issue may require reinvestigation because the taxpayer wants the BIR to evaluate additional evidence that was not part of the original record.

This example also illustrates why selecting the remedy should follow a careful review of each assessment issue not simply a standard template used for every BIR protest.

Frequently Asked Questions

What is the main difference between reconsideration and reinvestigation?

A reconsideration relies on the existing audit record.

A reinvestigation asks the BIR to evaluate newly discovered or additional evidence.

Do both protests have to be filed within 30 days?

Yes.

The administrative protest against the FLD/FAN generally must be filed within 30 days from receipt.

Does the 60-day document deadline apply to both?

No.

RR No. 18-2013 expressly states that the 60-day supporting-document period applies to reinvestigation, not reconsideration.

Can I submit new evidence under a request for reconsideration?

Reconsideration is designed to rely on the existing record. If the taxpayer's defense depends materially on newly discovered or additional evidence, the case should be evaluated for reinvestigation instead.

Can I ask for reinvestigation after receiving an FDDA?

Generally, no. RR No. 18-2013 provides that no request for reinvestigation is allowed at the administrative appeal stage after the authorized BIR official has issued the decision.

What happens if I do not identify all the disputed issues?

Assessment items that are not properly challenged may become final, executory, and demandable even if other portions of the FLD/FAN are being protested.

Choosing the Right Protest Can Shape the Rest of the Tax Case

A BIR protest should not begin with a template.

It should begin with the evidence.

If the existing audit record already proves the taxpayer's position, reconsideration may be appropriate.

If additional records are necessary to explain the transactions or dispute the assessment, reinvestigation may provide the proper procedural route but it comes with an important 60-day documentary deadline.

In either case, taxpayers should review the FLD/FAN immediately, identify every disputed issue, preserve proof of receipt, evaluate the available evidence, and prepare specific factual and legal grounds before filing.

Aureada CPA Law Firm assists businesses and individual taxpayers in reviewing FLD/FAN assessments, determining whether reconsideration or reinvestigation is appropriate, preparing administrative protests, analyzing tax and accounting records, and developing strategies for subsequent BIR and Court of Tax Appeals proceedings.

For substantial assessments, choosing the correct remedy early can affect not only which documents may be considered, but also the timing and strength of every succeeding stage of the dispute.

If you have received an FLD/FAN, the issue is not simply whether you disagree with the BIR. The more important question is how and on what evidence you will legally challenge the assessment.