IFTA: Avoiding an Audit

We’ll start you off with a little known, yet very important fact; every base jurisdiction is required to audit 3% of its IFTA accounts per year. Doesn’t seem very fair, does it? Well it’s not, but that won’t keep you from being affected by the rule.

The policy is in place as a safety precaution to be sure that all drivers are keeping accurate fuel and mileage records. Because of this, any driver can be randomly selected for an audit at any time, often with little or no notice.

While many are random, there are also several other reasons for your base jurisdiction to decide to audit you. Below we’ve listed some of the most common reasons for an audit so you can be sure to avoid them.

Reasons for an Audit

Reporting False Information on Application: When applying for an IFTA license, be sure that all of the information you submit is correct and accurate. Even if it’s not intentional, submitting false or incorrect information is taken very seriously and is a great way to get audited by your base jurisdiction.

Gaps in Mileage: This issue occurs when the mileage on a trip log from the end of a day doesn’t match up with the mileage beginning the next day. This happens quite often on accident, as many drivers don’t realize that their personal or leased miles must also be included on trip logs. Mileage recorded should include all interstate and intrastate movement, including loaded, empty, deadhead, and/or bobtail miles.

Skewed MPG Calculations: Another great way to immediately draw a red flag with your base jurisdiction is to have a large amount of variance in your miles per gallon calculations. If that is the case, there needs to be an obvious reason for the discrepancy, such as different road conditions, varying weight loads, etc. If there is not a clear reason for the variance, it will more than likely trigger an audit.

The range of your miles per gallon should also fall within the average of 5-10 mpg. If your MPG falls outside of this range, then you have most likely made an error during your calculations. Some states will actually not even allow filings that are not within that range.

Non-continuous Jurisdictions: When completing your trip logs, they must show continuity from the starting point to the destination, including every district in between. If you have your trip logs ending in one state, and they start back with you in the middle of another state, you can bet your tail you’re going to get audited.

Decals Missing or Not Displayed Properly: Not having proper decals or not maintaining them for the proper amount of time can also be a costly issue. All decals are required to be accounted for and maintained for 4 years, and a detailed inventory list must be kept in case of an audit that includes:

• Vehicle numbers (VIN, license plate, and unit number)
• Assigned decal numbers 
• Date the decals were assigned
• Any special notes with relevant vehicle information (truck wrecked, painted, etc)

Random Selection: This is by far the most common reason for an audit. Even if you can avoid all of the above issues, there is still a chance that you can be chosen at random for an audit. So be sure that even if you’re compliant with all of the IFTA rules and regulations that you have all of the proper documentation, that way the process is as quick and painless as possible if you do ever have to deal with an audit.

If you don’t have time, or don’t want to deal with all the paperwork and calculations that accompany an IFTA return, Truck Services of North America is always here to help. We’ll not only calculate the amount owed for your return based on your trip sheets, we’ll file it for you. Just give us a call at 803.386.0320 or email us at support@tsnamerica.com, and let TSNAmerica work for you. We also offer several other trucking services, so if you need any help filing your Form 2290 or registering for your IRP, we can do that, too!

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Today is Deadline to File 2nd Quarter IFTA, Use Tax & Form 2290 Returns

The deadline to file 2nd Quarter  IFTA, KYU, NY HUT, and New Mexico Weight Distance returns is today!! You must file a return even if you did not run during the quarter. You would just file a “zero” report.

Failure to file a return, filing a late return, or failure to remit any or all tax due will result in a penalty of $50.00 or 10% of the net tax due to all member jurisdictions, whichever is greater.  Interest is computed on all delinquent taxes dues each jurisdiction at a rate of .4167% per month.  Even if you have a net refund, interest still applies to each jurisdiction for any underpayment of fuels use tax to that jurisdiction and is calculated beginning the day after the due date of the return for each month, or fraction of a month, until paid. So the longer you are late, the more you will owe.

It is also the last day to file your Form 2290, if you first placed your vehicle on the road anytime during the month of June.

A Vehicle is considered to be a taxable vehicle if it was operating on public roads between the tax periods of July through June. A vehicle is also considered to be taxable if it has a taxable gross weight of at least 55,000 pounds and travels at least 5,000 miles during the tax period (7,500 miles if used for agriculture).

The deadline for 2nd quarter IFTA and Use Tax & Form 2290 returns is today, July 31st, so if you have not yet filed your return(s), you will want to file it now to avoid penalties and interest.  At Truck Services of North America, we make it simple by preparing and filing your quarterly returns for you. TSNA takes the paperwork out of your way.  Contact us at TSNAmerica.com or call 803.386.0320.

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Tomorrow is the Deadline For 2nd Quarter Returns & Form 2290

Tomorrow, Wednesday, July 31, 2013 is the deadline for 2nd Quarter IFTA, KYU, NY HUT, and New Mexico Weight Distance returns as well as Form 2290 for Heavy Vehicle Use Taxes on vehicles first placed on public highways during the month of June.  

On the road and unable to file on your own?  No problem, just give us a call and we’ll take care of it for you.  We take all your information over the phone and submit it to the IRS on your behalf!  All we need is your information and a signed Form 8453, giving us the authorization to file for you.  We can fax you the form, you sign it a fax it back and we take care of the rest. We can even send your employer proof that you filed your Form 2290 for you.  So don’t risk IRS penalties by missing tomorrow’s deadline.

As a premier processing agency, Truck Services of North America can assist with your IFTA,  NY HUT, KYU, New Mexico Taxes and Form 2290. TSNA takes the paperwork out of you.  Check out all our services at TSNAmerica.com and fill out the Service Request Form, email us at support@TSNAmerica.com or call 803.386.0320.

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2nd Quarter IFTA Returns Due In One Week

Reminder that 2nd Quarter IFTA Returns are due next Wednesday, July 31, 2013.  The International Fuel Tax Agreement (or IFTA) is an agreement between the lower 48 states of the United States and the Canadian provinces (except Northwestern Territories, Nunavut and Yukon), to simplify the reporting of fuel use by motor carriers that operate in more than one jurisdiction. This simplifies the process of reporting quarterly fuel tax returns.

This tax is required for motor vehicles used, designed, or maintained for transportation of persons or property and:

• Having two axles and a gross vehicle weight rating or registered gross vehicle weight in excess of 26,000 pounds, and/or 
• Having three or more axles regardless of weight, and/or 
• Is used in combination, when the weight of such combination exceeds 26,000 pounds gross vehicle or registered gross vehicle weight.
  

Exceptions exist for Recreational Vehicles (such as motor homes, pickup trucks with attached campers, and buses when used exclusively for personal pleasure by an individual). Some states have their own exemptions that may apply to farm vehicles or government vehicles, so check your state for their specific exemptions.

The IFTA license offers several benefits to the interstate/inter-jurisdictional motor carrier. These benefits include one license, one set of decals per vehicle, one quarterly fuel tax report for all vehicles that reflects the net tax or refund due. Tax returns are required even if no operations were conducted or no taxable fuel was used during the reporting period. Returns that are not filed or not paid in full are considered late and will be assessed penalty and interest.

When filing a tax return, a licensee may apply the fuel overpayment generated in one jurisdiction to the taxes owed for another jurisdiction. These advantages result in cost and time savings for the carrier and the member jurisdictions.

Under IFTA, you are able to file one return in your base jurisdiction and that jurisdiction will allocate the money appropriately.  This agreement definitely simplified what used to be a very long and time-consuming process. So don’t delay in filing your 2nd Quarter IFTA return by the July 31st deadline.  

At Truck Services of North America, we make it even simpler by preparing and filing your quarterly returns for you. TSNA takes the paperwork out of your way.  Check out all our services at TSNAmerica.com and fill out the Service Request Form, email us at support@TSNAmerica.com or call 803.386.0320.

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Penalties For Late IFTA Filing

IFTA is the International Fuel Tax Agreement between the 48 contiguous States and 10 Canadian Provinces, where the member jurisdictions act cooperatively to administer and collect motor fuel use taxes.

Under IFTA, you are required to file Quarterly Fuel Tax Returns.  A quarterly fuel tax return must be filed even if the no fuel was used.  You submit a “zero” report. IFTA Returns are due on the last day of the month following the end of each calendar quarter. 2nd Quarter IFTA Returns are due July 31, 2013.

To avoid penalty for late filing, the tax reports must be postmarked no later than midnight on the date indicated. If the last day of the month falls on a Saturday, Sunday or legal holiday, the next business day will be considered as filed timely.

At Truck Services of North America, we make it even simpler by preparing and filing your quarterly returns for you. TSNA takes the paperwork out of your way.  Check out all our services at TSNAmerica.com and fill out the Service Request Form, email us at support@TSNAmerica.com or call 803.386.0320.

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2013 IFTA, NY HUT & KYU 2nd Quarter Filing Deadline Approaching!

The 2nd Quarter Filing Period for IFTA (International Fuel Tax Agreement), KYU (Kentucky Use Tax), New Mexico Weight Distance Tax, and NY HUT (New York Highway Use Tax) is now open. We want to remind you that the deadline for filing is July 31, 2013 and we encourage you not to wait until the last minute to file.

IFTA is the International Fuel Tax Agreement between the 48 contiguous States and 10 Canadian Provinces, where the member jurisdictions act cooperatively to administer and collect motor fuel use taxes.

The purpose of IFTA is to establish and maintain the concept of one fuel use license and one administering base jurisdiction for each license holder (licensee). Under IFTA, you only have to report to one state and the state allocate the fuel tax payments.  For more details see http://www.iftach.org.

We are halfway through the filing period for 2nd quarter.  The fuel taxes are due quarterly and July 31st is the deadline to file for the 2nd quarter. (April, May June).

What you need to file:

• Mileage log 
• Fuel Receipts 
• Any IFTA correspondences pertaining to your account (if applicable)

Late Filing or Not Filing could result in the following:

• IFTA filing (late fee) plus interest (if applicable) 
• Possible suspension of IFTA license 
• Possibility of having IRP/Apportioned Plate account affected 
• Citation from DOT if caught operating on a delinquent and or suspending IFTA license 
• Threat of having your entire transport operation shut down

The IFTA filing process may be vary slightly depending on your base jurisdiction state.  

New York Highway Use Tax (NYHUT) 

• Carriers operating certain commercial motor vehicles that weigh 18,000 lbs or greater in New York are required to register and obtain NYHUT tax credentials. Once a NYHUT account has been established, carriers must file and pay mileage tax on a quarterly basis.

Kentucky Use Tax (KYU Number) 

• All commercial motor vehicles (except buses) with a gross weight of 60,000 lbs and over traveling into or through Kentucky must be registered with the state. Carriers with an active KYU Number are then required to file a quarterly return and pay mileage taxes to Kentucky. New qualifying vehicles must be listed with Kentucky prior to the vehicle entering the state. Temporary permits are also available.

New Mexico Weight Distance Tax 

• All commercial motor vehicles with a gross weight in excess of 26,000 lbs. must be registered with the state before traveling into or through New Mexico. Entrance can be paid at the port if not registered; however, it is not cost effective to pay at the port unless you travel through New Mexico only once or twice per year. Once a Weight Distance Tax account in New Mexico is established quarterly reports must be filed and mileage tax paid.  

Oregon Weight-Mile Tax 

• All commercial carriers with a gross vehicle weight in excess of 26,001 lbs. must obtain a temporary or annual permit to travel into or through Oregon. Oregon does not belong to the International Fuel Tax Agreement; however, a proper tax permit must be obtained before entering this state. Heavy fines are imposed on carriers entering into Oregon without the proper credentials. 
• Oregon requires all new entrants to become bonded before permanent credentials are issued. Bonds may be placed by a Surety Company or posted with cash. The size of your fleet will determine the amount of the bond required.

If you are new and not sure what to do or would rather not have to take the time to file your IFTA, NY HUT or KYU contact Truck Services of North America today. If you would like us to take care your IFTA, we will need copies of your mileage logs and fuel receipts into our office by July 15th, to ensure the paperwork is processed by the July 31, 2013 deadline.

As a premier processing agency, Truck Services of North America can assist with your IFTA,  NY HUT, KYU, New Mexico and Oregon Weight Distance Taxes.  TSNA takes the paperwork out of you.  Check out all our services at TSNAmerica.com and fill out the Service Request Form, email us at support@TSNAmerica.com or call 803.386.0320.

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ATTN Colorado IFTA Filers

The Colorado Department of Revenue has discontinued the Quarterly Fill-In IFTA Tax Report (DR 0122) as of 2nd Quarter 2013.  You can now E-File your Quarterly return online through Revenue Online.

If you do not want to deal with E-Filing, contact Truck Services of North America and we can handle the filing process for you.  As a premier processing agency, Truck Services of North America can assist with E-Filing your IFTA.  We prepare and file your return for you.  TSNA takes the paperwork out of you. Check out all our services at TSNAmerica.com and fill out the Service Request Form, email us at support@TSNAmerica.com or call 803.386.0320.

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ATTN California IFTA Filers!

If you hold a California IFTA, you are required to file quarterly IFTA returns. The paper return your received in the mail for 2013 1st Quarter IFTA, was the last IFTA return that the Board of Equalization will mail to you.  Beginning 2nd Quarter 2013, you will be required to E-File IFTA your returns.

See the full notice, you should have received in the mail.  It explains how to set up your account in detail, so that you will be ready to file your 2nd Quarter IFTA Tax Return next month.  Or you can have TSNA do it for you.

As a premier processing agency, Truck Services of North America can assist with E-Filing your IFTA.  We prepare and file your return for you.  TSNA takes the paperwork out of you. Check out all our services at TSNAmerica.com and fill out the Service Request Form, email us at support@TSNAmerica.com or call 803.386.0320.

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