IFTA audit - any ifta attorney's ?

Tracking vehicles can be time consuming, but only to a point. This was a sample audit. If CJAaggregatehauler cannot track the vehicles, how can an auditor with no routes of travel be expected to? CJAaggreatehauler wants to protest the audit and thinks that the tracking is important, I gave my best advice on do that. If the company does not agree with audited TX and OK miles then documenation needs to be presented as to why the audit is wrong. If not all the trips are tracked then at least enough, possibly one vehicle, to show that the actual routes differ greatly with the audited. A protest requires proof that information was interperted incorrectly. Honestly, the disallowed gallons sounds like a much bigger problem to me. Many times a taxpayer gets hung up on an issues that does not make up a lot of dollars and does not focus on the money issues. I do not know that to be the case in this audit but suspect it. I have not reviewed the audit report.

To determine the dollar amount of the miles transferred from OK to TX, divide the increase in TX miles by the audited MPG then multiplied by $0.07. An increase in 100,000 miles divided by an MPG of 5.0 multiplied by the tax rate difference of $0.07 equals only $1,400.00. That is a lot below the audit assessment so I really think that the real problem is disallowed gallons.

Our jurisdiction always suggest that the driver request the information at the time of purchase and write it on the receipt if the retailer does not comply. I would highly suggest not doing business with a company that will not supply you with the information required by IFTA.

 

I am knee deep in this BS with PA IFTA right now. they Did a 2 quarter audit and decided based on 4mpg that I owed 8500.00 now they are doing another 1/4. during the 1/4s that were audited already we were running hot shots averaging 12 mpg. There is no way I'm stroking a check with out an appeal, a lawyer and a fight. you have the right to an appeal and you need to exercise that right. I have a law firm in pa that specializes in this stuff. if you want to pm me I'll give you their info but it probably won't help where your at. they are doing a friends company and are asking for records older than the 4 yrs back from the most recently filed I/4 even though you are not required to keep those records. it is gov't greed as it always is. the auditor is an okay guy it's the state employees who hid behind emails and don't return calls that are the problem. when dealing with any gov't agency extortion you need representation and you need to dig in your heels IF you have legitimate reasons and facts proving you do not owe what they SAY you owe. good luck and remember anyone can send you a bill that doesn't mean you have to pay it or that it is correct and IFTA is no different

 

I have been audited a few times over the years.....Just pay the fine. The systems they use to figure are flawed, and the time you spend fighting and asking why you could just get back to work and probably come out ahead. If you want to shoot me a message I will be happy to talk to you on phone and give you details, Russell

 

Anybody know the consequences of not complying with and IFTA audit? I know they will probably close my account but will they do anything else? Will they come after me personally? The IFTA license is under a personal LLC. I'd appreciate any input.
ps: The reason why I don't want to do it is because they did one a couple of years ago and it was clear to me that the system is set up to beat us, I never cheated on my reports in 20 years and I don't wish to go through the same thing again.

 

If you've been through it you already know the game. If you just tell them you cant afford to be audited, they will close your account, mail you a fine, and attach any tax returns (state and federal) you may have in the future.
I dont think its criminal to not comply (its not with the IRS) so dont worry about jail. You will probably get the fine book thrown at you tho.
Spend $150 on a one hour consultation with a transportation attorney.

 

If you fail to comply and produce the required documentation in an IFTA audit, the jurisdiction will conduct a best information audit known as a BIA. Conservatively, the reported total miles will be divided by the statutory 4.0 MPG to recalculate the total gallons (meaning the total gallons are increased). All tax paid credit from purchased gallons will be denied (meaning all tax paid at the pump now = $0.00). You will get a VERY BIG bill. If the vehicles are not running maximum miles, the miles may be increased also. I really liked to do when taxpayers who made my job all that much more work. My boss didn't always concur. If you have not complied and made the auditor hunt you down then decide to comply expect them to treat you as if you hiding things and cheating.

HERE IS HOW THE BILLING OF A BEST INFORMATION AVAILABLE AUDIT WORKS (to be clear I do not know how the LLC would affect the billing so the YOU maybe the company):
Typically, the auditor will request an appointment, follow up a couple times, send a letter with date deadline, send a letter that needs to be signed for with the BIA dollar amount if no complicance, then the BIA will be submitted and billed. After the billing, you will be given a protest period. After the protest and payment periods, the account will be turned over to collections and the account will most likely be closed. In collections, any property you own (including the truck, cars, motorcycles, boats, trailers, land and bank accounts) will attached so that you cannot sell it without the funds going to the state. All state and federal tax refunds will be taken. In some states, monies will be taken directly from bank accounts. Since you can't run your truck, if you take a job then your wages may be garnished. If there are any other people listed as officers of the company, they most likely will also be affected. I'm not sure as to the LLC ramifications. You may be able to lease the vehicle to someone and they plate it under a different account.

You cannot go to jail for failure to pay an assessment. If you don't want to comply with IFTA regulations, you should lease to a carrier under their account. When you signed up for IFTA, you agreed to the regulations and auditing of those regulations. If you don't like the game, don't play.

As a side note: In some states if you do not pay an IRP assessment, the plated vehicles will be attached so that the vehicle cannot be plated again until the payment is made. That makes the truck worthless, you can't sell it, run it or lease to anyone else. One of the worse company I knew would Inc. a different name every few years. The family would run up bills including IFTA assessments then Inc. a different name. The family always paid IRP assessments due to the attachments to the truck of not being able to get a new plate. They could change the name all they wanted but the VIN number never changed.

 

You are very mis-informed if you think personal assets can be attached under a corporation or LLC......

 

I state the way that the process worked and CLEARLY stated that and I quote " I'm not sure as to the LLC ramifications. "

 

If the truck is titled under a individuals name, it cannot be attached or prevented from being run under another plate or new company.

 

I was an auditor and dealt with the assessment and billing. How the LLC affects the billing of IFTA assessments, I don't know. I know what the process was for billing. IFTA has different regulations than IRP. My guess is that if the gentleman asking the question refuses to provide information for the IFTA then any and all accounts he has with that jurisdicition will be reviewed. If he has an IRP account, it could (most likely) will also be audited. IRP can be dealt with very differently than IFTA and the truck can be flagged not to be plated reguardless of how it is titled. It was just a warning that IRP can be harsher than IFTA.