The International Registration Plan (IRP) and International Fuel Tax Agreement (IFTA) are programs to collect and distribute fuel tax and vehicle registration revenue between states and provinces. IFTA and IRP benefit carriers by consolidating licensing and reporting requirements through the home state.
States are required to audit Fuel/Mileage Tax reports and records as well as verify that the correct equipment registration fees were calculated and paid.
With the Electronic Logging Device (ELD Mandate) in full swing, IFTA/IRP auditors are noticing a big issue - carriers are trying to use their electronic ELD data to report their IFTA & IRP data but do not have the procedures in place to ensure it is done correctly! Worse yet, the records required for audit are not adequate or sufficient. Instead of using technology to simplify and be more efficient in IFTA/IRP compliance, gaps in data, lack of internal controls, lack records and lack of regulatory knowledge are bringing about substantial fines and penalties.
According to one State auditor manager, "you guys are in for a bloodbath!" when speaking about the audit results he is already seeing from carriers relying too heavily on the accuracy of an ELD for their IFTA/IRP compliance data.
Are you using accurate data and internal controls to be in compliance with IFTA and IRP reporting? Are you keeping the required electronic records for audit? If you can’t confidently respond “yes”, you need to find out before you are audited by the State. That’s where we can help!
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