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Thursday, July 14, 2016

Want to Avoid an IFTA Audit? Avoid These Errors!

Alright, Trucking Nation. The 2nd Quarter IFTA deadline is getting closer and closer, and we need to focus on avoiding an audit.

We’re gonna take this step by step, and focus on the heavy hitters.

The following are some of the red flags IFTA auditors keep their eyes out for:

Non-continuous Jurisdictions


Alright, this is kind of obvious, but it happens. Your trip logs must show continuity from your starting point to your destination. That includes every district in between.

There’s no way your vehicle began in New Jersey and then suddenly shows up in Ohio. Make this kind of error, and an auditor will be knocking on your door in no time.

Gaps in Mileage


If your end of day trip logs don’t match up with the beginning of the next day, you got yourself a mileage gap.

This usually happens because drivers don’t realize that their personal or leased miles must also be included on the trip logs.

Over-simplified Fuel Calculations


When reporting fuel, it is not acceptable to divide your miles traveled by a predetermined Miles Per Gallon estimate as MPG will naturally fluctuate. The precise fuel use and mileage must be recorded.

Skewed MPG


If your average MPG has drastic variations from one quarter to the next, without a legitimate reason such as differing road conditions, varying weights of the loads carried, etc, an audit could be triggered.

Excessively High/Low MPG


The average MPG for a heavy vehicle is between 5-10 MPG.

If your MPG falls outside of this range, you probably made an error in calculations.

The tough part is, some states won’t let you file your IFTA return until your MPG is within that acceptable range.

However—even if you avoid these obvious errors—you can still be chosen at random for auditing.

If you feel your IFTA return is too complicated, or you don’t have time to dedicate to it, contact one of the dedicated specialists at Truck Services of North America. We not only calculate the tax amount due and prepare the return based on the information provided to us, we also file it directly with the state.

Give us a call at 803.386.0320 or fill out our service request form today!


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