NJ IFTA Audit

Stay up all night till you get every thing in order or you will be paying a fine split up to every state in the IFTA program?

 

What isn't accurate and why isn't it accurate? The answer to those 2 questions will give you a better idea as to how you should proceed. For example, if your mileage is inaccurate because your vehicle speed sensor malfunctioned, you'll get more leniency than if you intentionally shaved miles in high-tax states or didn't report all of your gallons used (ie you stole fuel, ran "off road" untaxed fuel, or even "lost" a fuel receipt or two from low-tax states while running miles in high-tax states) in order to bump up mpg's.

In other words, were they honest discrepancies or intentional?

 

They might shut you down and revoke your authority. If this is your new entrant audit, there isn't supposed to be fines associated with the first audit. There are certain records which are required to be kept by carriers. Failure to keep proper records can result in fines and revocation. They could put you on probation and that could hurt your safety record.

 

If it were me I would try to postpone the audit until you get things in order. What are they asking to check?

 

The fines will be what the think your tax liability is, plus penalties in the thousands of dollars. They will assume you operated the same averages as all other companies and charge you accordingly, usually many thousands of dollars over what you actually owe. A local towing company I know (family friend) did not have fuel receipts or any other records and they fined him $10,000 in penalties, $8,000 in estimated taxes due, and $250 per set of decals he had that were incorrectly displayed on his trucks (he had 16 sets of decals but only needed 3). His right to participate in IFTA and hold apportioned plates was suspended for three years, and they attached that suspension to the VIN numbers of each of his trucks so he could not sell them or lease them to another company that operated interstate for that three year period.

If you do not have fuel receipts with the location, gallons, time, etc on them get ahold of your fuel card or credit card company and see if they can get you reprints, make up state line crossing sheets that accurately reflect your operation, and find or create everything else they are looking for or you will be in big trouble, and tax debt does not go away, even with bankruptcy or going out of business.

The state and Feds take IFTA tax very seriously, you need to get your records in order now, have as much as possible to reduce the potential for penalties.

Good luck.

 

You don't have to buy fuel in each state that you run in. I'm running through In. & Ky tonight and tomorrow and I won't buy fuel in either state but will turn the miles in at the end of the qtr.