What to Do in the Event of an IFTA Audit

Even though the 3rd quarter IFTA deadline is still over a month away, don’t think you can put IFTA out of your mind entirely. Even though you filed your 2nd quarter return, paid the necessary fees, and even registered for your new license and stickers, unfortunately, there’s still the chance of an audit!

Now we know you’re a responsible trucker; you tracked your mileage properly and kept all of your fuel receipts nice, neat, and organized. But what you may not know, is that even if you do everything right, there’s still a chance you're going to get audited. Each base jurisdiction is required to audit three percent of its filers, just to make sure that truckers across our nation are keeping their logs and receipts properly.

So what can you do if you’re one of the unfortunate truckers that gets audited?

Get Your IFTA Information Ready

The first step (and only step, really) in a routine audit is for the auditor to go through and verify all of the information on your return. So you’ll need to have the following information ready to go:

Basic Information About Your Vehicle: 

• Driver’s Name and Signature
• VIN (vehicle identification number) 
• Trailer Number
• Registrant’s Name 
• Make, Model, and Gross Weight of the Vehicle 

Trip Log Information:

• Beginning and End Dates of the Trip 
• The Route(s) of travel 
• The Origin Point and Destination Point of each Trip 
• Odometer Readings Before and After Each Trip 
• Total Trip Miles
• Miles Traveled in Each IFTA Jurisdiction 

Fuel Record Information: 

• Receipts for Each Purchase (Please note that copied or scanned receipts are not acceptable.)
• Date of Each Purchase (If it’s not listed on the receipt) 
• Seller’s Name and Address 
• Price Per Gallon/Liter 
• Fuel Type

So just make sure you have all of the following pieces of information together, and you'll have nothing to worry about in the event of an audit.

And if you think maybe you got audited because you threw your return together yourself at the last minute, then next time, try using ExpressIFTA to generate your report. All you have to do is enter your fuel and mileage information and they'll calculate everything for you!

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International Fuel Tax Agreement

The International Fuel Tax Agreement (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. 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.

Who is required to file?

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.

When do you have to file?

Under IFTA, you are required to file quarterly fuel tax reports.

• The reporting quarters and due dates are:

January – March	April 30
April – June	July 31
July – September	October 31
October – December	January 31

How do you file?

The filing process varies from state to state.  Some states offer e-filing, with more states moving towards that option.  Check with your state to find out what is required.

As a premier processing agency, Truck Services of North America can set up your IFTA accounts and file your Quarterly IFTA Taxes for you.  TSNA takes the paperwork out of your way. For more details contact us at TSNAmerica.com or call 803.386.0320.

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