IFTA Plus Helps Prevent and Manage IFTA Audits

January 15, 2010 at 4:43 pm 2 comments

At least 3% of all trucking companies must undergo an IFTA audit each year.  These IFTA audits are no fun at all.  Each state determines who to audit based on a number of criteria, some is spelled out in the IFTA Audit Manual.

IFTA Plus can help an IFTA Audit in two ways.

1) Proactive Data Analysis

When your company files an IFTA return, states look at various data points and determine if they fall within reasonable limits.  For example, if your return is filed using 15 MPG, your return is immediately flagged and not treated as valid.

IFTA Plus now actively runs all your company data through numerous checks to make sure there are no glaring issues.  What checks do we perform?

MPG Audit – Your overall company MPG is checked to see if it falls within a state specified range.

Changed MPG – If you have previously prepared your IFTA return using IFTA Plus, your MPG is reviewed to see if there have been any large changes over previous returns.

Exempt Miles – If you are claiming any exempt miles, you need to include a note explaining why these miles are exempt.

Connecting States/Provinces – If you associate your fuel and miles to a specific truck, we ensure that miles within all reported states touch each other.  For example, we notify you if miles were reported in Kansas and Colorado and NOT a connecting state such as Missouri.

Repeat Data – When sorting through past records or when filing multiple quarters, the same fuel and miles records are accidentally entered in several quarters.  This check ensures your data is different from past quarters.

While these checks can’t ensure you will not be audited, they help decrease the risk that your return will be looked at in close detail by a state government employee.

2) IFTA Plus is your audit software tool

According to section 520 of the IFTA Audit Manual, “Audit emphasis should be placed on evaluation of the licensee’s distance accounting system, as distance allocation by jurisdiction is the basis for determining the licensee’s fuel consumption and tax obligation for each jurisdiction. It is suggested, but not required, that fleet miles/kilometers be verified to source documentation for at least three representative quarters. The auditor shall also verify that the total miles/kilometers have been properly distributed to the various jurisdictions.”

In addition to your company maintaining any physical records, such as trip records or dispatching routes, IFTA Plus maintains a digital copy of your records forever.  You can go back to any prior quarter and show your fuel purchased, miles per state as well as a copy of your return.

Hopefully your company will not be scrutinized by an IFTA auditor.  However, if you are an IFTA Plus customer, hopefully the process will be easier.  If you are a current IFTA Plus customer and have been through a recent audit, please leave a comment to describe your experience.

Entry filed under: ifta, IFTA Audit. Tags: , , , , , , .

Q4 2009 IFTA fuel tax preparation How to properly calculate IFTA taxes owed per truck

2 Comments Add your own

  • 1. Why Choose IFTA Plus? « IFTA Plus Blog  |  April 16, 2010 at 9:21 pm

    […] addition to immediate preparation of you IFTA fuel reports, IFTA Plus also provides fuel and mile analysis on each return, custom IFTA reports per truck, and great incentive […]

  • […] If you need help getting started, read more about the steps required to file your IFTA return.  If you have questions regarding IFTA Plus, hopefully you can find your answers here.  If you need some incentive, or a way to earn some extra cash, we have a great incentive program called IFTA Connect.  IFTA Plus has helped thousands of companies take the headache out of preparing their IFTA return and can even help you prevent an audit. […]


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