IFTA/IRP Overview
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
Content Disclaimer: Due to the constantly changing nature of government regulations, it is impossible to guarantee the total and absolute accuracy of the material contained herein or presented. NorthAmerican Transportation Association (NTA) cannot and does not assume any responsibility for omissions, errors, misprinting or ambiguity contained. NTA shall not be held liable in any degree for any loss, damage or injury caused by any such omission, error, misprinting or ambiguity present. It is made available with the understanding that NTA is not engaged in rendering legal, accounting or other professional service. If legal advice or other expert service is required, the services of such a professional should be sought.
