Carriers that report under the International Fuel Tax Agreement can be audited by their base jurisdiction. The auditor compares the miles and gallons on your quarterly returns with the records behind them.
What auditors ask for
- Distance records: trip reports or ELD and GPS data showing the route, the miles in each jurisdiction, the start and end of each trip, and the vehicle.
- Fuel records: receipts or fuel card statements showing the date, seller, location, gallons, fuel type, price and the vehicle.
- Your quarterly returns and how each figure was calculated.
How long to keep them
Under the IFTA agreement, records are generally kept for four years from the return's due date or filing date, whichever is later. Your base jurisdiction can tell you its exact rules.
Common problems
- Gaps in trip records, such as missing days or vehicles.
- Fuel purchases that cannot be matched to a vehicle.
- Miles per gallon that look unrealistic for the equipment.
- Personal or bobtail miles left out or mixed in.
Make it routine
Close out each quarter the same way: export jurisdiction miles, match every fuel purchase to a unit, check miles per gallon by truck, and file the support with the return. Our IFTA mileage organizer helps with the miles.
General information, not tax advice. Your base jurisdiction's rules govern.
This article is general information, not legal, tax or regulatory advice. Rules change; confirm current requirements with the responsible agency or a licensed professional.
