Just received an IFTA audit letter Now what?
Just received an IFTA audit letter — Now what?
A letter arrived in the mail this week indicating that your company is scheduled for an International Fuel Tax Agreement (IFTA) audit. Now what?
The words “you’re being audited” can create anxiety for motor carriers, especially among employees responsible for meeting with officials. But thorough, diligent recordkeeping and advance preparation can help you get through an audit.
What the auditor expects from you
When preparing for an audit, remember that the burden of proof is on your company. IFTA licensees must support their reported activity by presenting the documentation required.
When meeting with an auditor, be prepared to present:
- Demographic details, including federal employer identification and tax identification numbers;
- Details regarding unfiled returns and other outstanding liabilities;
- Relevant notes, including power of attorney, on file;
- Details from prior IFTA audits;
- Characteristics of vehicles in fleet, including types and weights;
- Activation and closing dates of accounts;
- Unusual fluctuations in reported distances, fuel, or miles per gallon (mpg) during the audit period;
- Number of reported jurisdictions;
- Variances between sums of quarterly reported jurisdictional distance and tax paid fuel compared to total distance and tax paid fuel;
- Variances between reported jurisdictional IFTA and International Registration Plan distances for quarters in the reporting period; and
- Apparent rounded or estimated reported figures.
What to expect from the auditor
Auditors will make initial contact either by telephone or letter, and the auditor should follow up with another letter or phone call before the audit takes place.
The auditor will usually request that you fill out a pre-audit questionnaire.
During the initial contact, an auditor may request mileage and fuel summaries to aid in sample selection and to obtain an early indication of the level of recordkeeping for the licensee. When follow-up communication is made, the auditor may discuss the documentation that will be reviewed and confirm that all available information will be ready at the beginning of the audit.
You should also expect an auditor who has no personal, external, or organizational connection to the company.
Key to remember: The word “audit” can create apprehension for carriers, but knowing what to expect can alleviate some of the anxiety.






















































