How to Prepare for an IFTA Audit

ExpressIFTA | October 12, 2020 | IFTA Audit | No Comments

Worried about being selected for an IFTA audit? Well since you could be randomly selected for an audit at any time, it’s something you ought to be prepared for.

Here’s everything you need to know about how to prepare for an IFTA audit.

How the IFTA audit process works

You will be notified by your base jurisdiction in advance about an IFTA audit.

At some point in the following 30 days, an auditor will contact you. They will request a lot of information about your organization and all of your IFTA records.

Then, they will have an in-person visit to examine your organization. This is a fairly comprehensive process that might include examinations of your record-keeping process, individual truck odometers, and more.

Finally, the auditor will compile all this information and notify you of what fees or penalties, if any, that you owe.

IFTA auditors don’t want to fine you

It’s important to remember that IFTA auditors aren’t trying to be malicious. They don’t want to hit you with penalties, though it might feel like it.

Each jurisdiction participating in IFTA agrees that it will audit 3% of its members every year. Most companies are selected at random, as each jurisdiction must meet their quota. Unfortunately, this means there’s nothing you can really do to avoid being audited.

What you can do, however, is prepare yourself for audits.

What IFTA auditors are looking for

Auditors really just want to see that you have a comprehensive, accurate system for recording mileage and fuel purchases — and that you’ve reported accurately.

This means having a shoebox full of receipts isn’t going to good look for you.

You need accurate, readily-accessible mileage records, fuel purchase information, and odometer readings to make the reporting process as painless as possible.

Truck preparing for ifta audit reporting

What to do before ever being audited

Establish a simple, accurate, and repeatable system for recording IFTA information.

This might involve something like using a trucking management software (TMS) to record all of your mileage, fuel receipts, and odometer readings in one place.

TruckLogics can do all of that for you.

For every dispatch you assign (or are assigned), TruckLogics will help you by calculating the mileage, letting you record odometer readings, and notate fuel purchases with attached documentation. At the end of every quarter, TruckLogics will also generate an IFTA report that you can use to file.

In addition to using a TMS, you should also occasionally audit your own information just to make sure it’s accurate.

This will help you address any inaccuracies as they arise, and address the source of those problems. Not only could this help you during an IFTA audit, but it could also help save you money on your quarterly taxes.

Always file on time

If you file your IFTA returns late, this will be an immediate red flag to an auditor. It will show that you haven’t been responsible with your time.

Also, remember to keep IFTA reporting records on file for at least four years. That’s as far back as auditors can typically go in your timeline.

Use TruckLogics TMS

TruckLogics can streamline all parts of your trucking operation, especially IFTA reporting. Get a free 15-day trial so you can see just how much they’ll help you! There’s no obligation and no credit card info required.

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Tags:Ifta, IFTA Audit, ifta reporting, ifta return, trucklogics