It is important to keep accurate records in case they are ever requested during an IFTA audit. As stated in in the IFTA Procedural Manual, you are required to maintain your records for 4 years from the due date or file date of the quarterly tax return, whichever is later, plus any time period included as a result of waivers or jeopardy assessments. Records may be kept on microfilm, microfiche, or other computerized or condensed record storage system acceptable to the base jurisdiction. Non-compliance with any recordkeeping requirement may result in the revocation of the license.
Detailed distance records which show operations on an individual-vehicle basis must contain, but not be limited to:
- Taxable and non-taxable usage of fuel;
- Distance traveled for taxable and non-taxable use; and
- Distance recaps for each vehicle for each jurisdiction in which the vehicle operated.
An acceptable distance accounting system is required and supporting information should include:
- Date of trip (starting and ending);
- Trip origin and destination;
- Route of travel (may be waived by base jurisdiction);
- Beginning and ending odometer or hubodometer reading of the trip (may be waived by base jurisdiction);
- Total trip miles/kilometers;
- Miles/kilometers by jurisdiction;
- Unit number or vehicle identification number;
- Vehicle fleet number;
- Registrant's name; and
- may include additional information at the discretion of the base jurisdiction.
Complete fuel records of all motor fuel purchased, received, and used in the conduct of its business must be maintained. Separate totals must be compiled for each motor fuel type and retail fuel purchases and bulk fuel purchases are to be accounted for separately.
The fuel records shall contain, but not be limited to:
- The date of each receipt of fuel;
- The name and address of the person from whom purchased or received;
- The number of gallons or liters received;
- The type of fuel; and
- The vehicle or equipment into which the fuel was placed.
Retail purchases must be supported by a receipt or invoice, credit card receipt,
automated vendor generated invoice or transaction listing, or microfilm/microfiche of the receipt or invoice. Receipts that have been altered or indicate erasures are not accepted for tax-paid credits unless the licensee can demonstrate the receipt is
valid. An acceptable receipt or invoice must include, but shall not be limited to, the following:
- Date of purchase;
- Seller's name and address;
- Number of gallons or liters purchased;
- Fuel type;
- Price per gallon or liter or total amount of sale;
- Unit numbers; and
- Purchaser's name
A licensee may claim a tax-paid credit on the IFTA tax return for bulk fuel only
when the bulk storage tank from which the fuel is withdrawn is owned, leased or
controlled by the licensee; the fuel is placed into the fuel tank of a qualified motor
vehicle; and either the purchase price of the fuel includes tax paid to the member
jurisdiction where the bulk fuel storage tank is located or the licensee has paid
fuel tax to the member jurisdiction where the bulk fuel storage tank is located.
Bulk fuel records must contain the following:
- Date of withdrawal;
- Number of gallons or liters;
- Fuel type;
- Unit number; and
- Purchase and inventory records to substantiate that tax was paid on all bulk purchases.
There are specific requirements necessary to maintain accurate IFTA records and is your responsibility as an IFTA licensee. Proper recordkeeping simplifies the audit process, should you ever be audited.
As a premier processing agency, Truck Services of North America, makes it simple by preparing and filing your quarterly returns for you. TSNA takes the paperwork out of your way! Contact us today at TSNAmerica.com or call 803.386.0320 to get your account set up.
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