Let’s talk about audits! Nobody wants to be audited, not that we need to actually say it, but it’s true.
Of course, you don’t have to always lose sleep over audits. I mean, the idea of filing your IFTA online
is supposed to make your life easier. How can we do that?
With the advent of IFTA, the legislation decided that 3% of IFTA license holders will be required to be audited every year.
We talk a lot about IFTA due dates, but we don’t nearly discuss audits enough. With the next IFTA deadline right around the corner, it’s important to audit-proof yourself before it’s too late!
Get Ready With Better Recordkeeping
In an audit, an auditor will request records previously agreed upon, like mileage records, fuel records, and any other requested information related to your IFTA operations.
Throughout the process, an auditor will be looking over your records, including:
- Individual trip records in detail
- Calculate trip mileage based on routes of travel using mileage logs and mileage software
- Examine the continuity of odometer reading to determine total elapsed miles
- Reconciliation of Mileage Source Documents and Summaries to IFTA quarterly tax returns
What IFTA Records Should I Keep?
The FMCSA requires you to retain at least 6 months for both logs and e-logs, and have the following records available:
- Fuel Receipts: You have to keep individual records for each type of fuel used, such as retail fuel and bulk fuel purchases. You’ll also need to show date or purchase, where the fuel was purchased from, the amount and type of fuel purchased, price per gallon or the total amount, and the unit numbers the for the truck which fuel was purchased for.
- Mileage Records: In order to prove the validity of your trip information, you will need to keep track of the mileage on your odometer. Your logs will need to include the mileage of the trip, including the total mileage, total mileage for each trip, and the total mileage traveled in each jurisdiction.
- Trip Reports: For your distance records, you’ll need to include all of your relevant trip information like the beginning and ending trip dates, trip origin and destination, and the route of travel. When you keep IFTA trip logs, you’ll always have that information ready to go.
If you find yourself in the middle of an IFTA audit, being prepared will make all the difference.
Thankfully, when you report your IFTA return with ExpressIFTA, your records are saved in our cloud-based system, allowing you to access them whenever you need. Avoid the IFTA penalties, file your fuel tax return with ExpressIFTA.
Are you prepared for an IFTA audit? If you have any questions about e-filing for the upcoming 3rd Quarter IFTA filing deadline, give us a call at 704.234.6005. We’d love to hear from you!