IFTA/IRP Overview

Wayne Schooling • June 5, 2024

IFTA

IFTA license and decals valid in all jurisdictions
Quarterly tax filings, filed/with paid to base jurisdiction
Tax is based on fuel used and miles driven, by jurisdiction

IRP

Plate and cab card valid in all jurisdictions
Annual renewal filed, with base jurisdiction

“Qualified” Vehicles

Vehicles that exceed 26,000 pounds
Power unit with 3 or more axles
Combination exceeds 26,000 pounds gross combined weight

Fee Calculation

IRP – Based on % of miles and state/province plate fee
IFTA – Basen on miles/MPG and fuel tax rate

GPS Rules as of January 1

Ping required at least

Every 15 minutes for IRP
Every 10 minutes for IFTA
Latitude/longitude to 4 decimal places (0.0001) of each system reading
The data muse be accessible in an electronic spreadsheet format (XLS, XLSX, CSV or Delimited text file)

Manual vs Electronic Recordkeeping

Technology	Manual
Miles & routes from GPS data	Miles & routes from driver trip reports
Automatic monthly & quarterly summaries	Hand or spreadsheet monthly & quarterly summaries
Electronic documentation	Manual/ scanned documentation
Automatic report creation	Download & manually create reports
Electronic check lists	Manual audits

Consequences of Inadequate Records

IFTA – Reduce Fleet fuel economy

To 4.00 MPG or 1.70 KPL or
By 20%

IRP – Penalty based on annual IRP registration

1st occurrence = 20%
2nd occurrence = 50%
Each additional occurrence = 100%

Record Retention

IRP – Up to 6 ½ years
IFTA – 4 years

Mileage Reports – Electronic (GPS)

Vehicle ID number/unit number
Date & time of each reading
Latitude & longitude
Electronic Control Module (ECM) odometer reading

Mileage Records – Paper

Date of trip
Trip origin & destination
Route of travel
Odometer/hub odometer or ECM readings
Total trip distance
Distance traveled in each jurisdiction
Vehicle ID number or unit number

Fuel Receipts

Date of purchase
Seller name & address
Number of gallons
Total amount of sale
Purchaser’s name & address
Fuel type
Vehicle number

Best Practices

Internal controls

Keeping appropriate records
Check accuracy
Consistency
Recordkeeping policy and train drivers
Use fuel cards to provide electronic fuel receipts that can be imported into your system
If using ELD data – do not purge GPS data.
Every mile is reportable after you put IFTA/IRP on your truck including
Empty deadhead
Personal use
Repairs
Spot check mileage
Keep a “Daily Trip Report” in the truck
Go Electronic
Do a gap analysis on your mileage

IRP or IFTA vs Safety Audit Compliance Review

IRP or IFTA Audit	Safety Review
Tax Audit	Compliance review
Checks to see if carrier has paid fuel tax & registration fees	Check to see if carrier has in place sufficient safety management controls
Burden is on Carrier	Burden is on Investigator
Checks for driver “red Flags”	Checks carrier CSA scores

Reasons For IFTA and IRP Audit

3% must be audited
Late returns
Amended returns
Missing information
Fuel economy and milage fluctuations
High refunds

Assessment Amounts

Thousands of dollars
Multiplied by balance of fleet & by total years
Be sure receipts & distance records include all required information

Gaps in Miles

Investigate within company
Try to recoup information
Be honest with auditors

State Weight Distance Tax

Connecticut
Kentucky
New Mexico
New York
Oregon

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