The International Fuel Tax Agreement (IFTA) and International Registration Plan (IRP) have similar recordkeeping requirements. A recommended source document under these programs is an “Individual Vehicle Mileage Record” (IVMR). The IVMR is the original record generated in the course of actual vehicle operation and is used as a source document to verify your reported distance and fuel use.
Interstate carriers must keep records to demonstrate compliance with the International Registration Plan (IRP) and the International Fuel Tax Agreement (IFTA).
Recordkeeping is an important part of keeping your vehicles on the road. Every International Registration Plan (IRP) registrant and International Fuel Tax Agreement (IFTA) licensee must maintain distance and tax use records to substantiate information reported on the tax returns and registration renewals.
A recommended and acceptable source document under IFTA and IRP is an “Individual Vehicle Mileage Report” (IVMR).
The IVMR is the original record generated in the course of actual vehicle operation and is used as a source document to verify the registrant’s reported distance and fuel use.
For records produced by means other than an electronic recording device (i.e., paper trip reports), the IVMR must show:
| Prior to January 1, 2024 | Beginning January 1, 2024 |
|---|---|
| Records produced wholly or partly by a vehicle-tracking system, including a system based on a GPS, must include: 1. Original GPS or other location data for the vehicle to which the records pertain; 2. Date and time of each GPS or other system reading; 3. Location of each GPS or other system reading; 4. Beginning and ending reading from the odometer, hubodometer, engine control module (ECM), or any similar device for the period to which the records pertain; 5. Calculated distance between each GPS or other system reading; 6. Route of the vehicle’s travel; 7. Total distance traveled by the vehicle; 8. Distance traveled in each jurisdiction; and 9. Vehicle identification number or vehicle unit number. | When the vehicle’s engine is on, the vehicle-tracking system that utilizes latitudes and longitudes must create and maintain a record at a minimum of:
Records must contain the following elements: 1. Vehicle identification number or vehicle unit number, 2. Date and time of each system reading, 3. Latitude and longitude to include a minimum of 4 decimal places (0.0001) of each system reading, and 4. Odometer reading from the ECM of each system reading. If no ECM odometer is available, a beginning and ending dashboard odometer or hubometer for the trip is acceptable. The data must be accessible in an electronic spreadsheet format such as XLS, XLSX, CSV, or Delimited text file. |
IVMRs should be accurately and legibly prepared by the driver.
Both IFTA and IRP require reported mileage for the actual routes traveled by each vehicle for each trip.
IFTA licensees must maintain complete records of all motor fuel purchased, received, and used while conducting their business. Detailed distance records showing taxable and non-taxable use of fuel and the distance traveled for taxable and non-taxable use must be kept on an individual-vehicle basis. Separate totals must be compiled for each motor fuel type. Retail fuel purchases and bulk fuel purchases must be accounted for separately.
IRP registrants must maintain operational records that support the total distance each vehicle traveled in each jurisdiction and total distance traveled everywhere to substantiate an application for apportioned registration. The source documents must contain sufficient detail that vehicle movement may be traced. When recording the mileage of an apportioned vehicle all movement (interstate and intrastate) must be included, as well as loaded, empty, dead-head and/or bobtail miles or kilometers, and all distance traveled while operating with trip permits.
The information from the IVMRs is used to prepare a monthly summary of in-jurisdiction and total distance traveled by each power unit, a monthly summary of in-jurisdiction and total distance traveled by the fleet during each calendar quarter, and a summary of the quarterly reports used to prepare the apportioned application.
The summaries are not acceptable at face value as the sole record; they must be supported by source documents, such as the IVMRs during an audit.
Record retention. IRP requires the licensee to preserve the records their apportioned registration application is based upon for the current application year, plus the three preceding mileage years.
IFTA requires the records used for the quarterly tax return to be retained for four years from the return due date or filing date, whichever is later, plus any time period included as a result of waivers or jeopardy assessments. If a licensee fails to provide the required records for audit, the four year retention requirement is extended until the required records are provided.
In some cases, depending on when the IRP is renewed, licensees must keep records for 6½ years. It is recommended to keep all records for at least 6½ years to ensure coverage in an audit.