Hello. I'm new to this forum. I'm the secretary and just received a letter from the State of Michigan - Department of State.
I have only been with this company for a little under a year and am now getting a letter for an audit for our fleet distance reports. They want to audit for the second third quarter of 2006 up till the 3rd quarter of 2009.
I have yet to thoroughly look over the records, but I have a couple of questions.
First of all - does the IFTA Quarterly Fuel Use Tax Return needed for each quarter of the audit? The reason I ask is because I am looking at the letter from the State of Michigan Department of Treasury regarding the 3rd quarter of 2006, and it said that the period is complete. Then it states that our return was corrected from a credit to tax due amount. We paid this amount and that was that. Could that be just one reason for the State of Michigan to audit us?
Second of all, does the letter mentioned above come every quarter even though there is no amount due or no credit?
We need to have this in on or before December 1 of this year. I only hope the girl before me kept excellent records. The letter also stated that if we do not comply with this audit, we will be subject to the full assessment of the Michigan registration fee. Does anyone know how much that would be???
Thank you so much!
Suzanne
IRP Audit - help!
Discussion in 'Ask An Owner Operator' started by bneuens, Nov 11, 2010.
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I would suggest you contact the people that contacted you and ask for clarification in these matters, just like you're asking us. IFTA quarterly returns need to be filed whether there is fuel use or not.
Also, many States have begun sending out their IRP renewal packages for 2011 and distance schedules are part of that renewal.
I'm afraid I've not been much help here, but my best suggestion is to contact them for clarification so you know what is needed and why.
I'll be watching this thread to see how things unfold for you. -
As far as the distance report-
Check out page 27:
http://www.michigan.gov/documents/2002IRPmanual_17888_7.pdf
Here's a sample distance report:
http://www.michigan.gov/documents/IRPFuel-DistanceReport_75162_7.pdf
You should not be receiving an audit notice every year.
These are a few things that will trigger an audit (other than being randomly selected):
Fleet MPG is too high for the type of operation. This means that you haven't declared all fuel purchased in all juristictions.
Consecutive quarters where you have had a credit that the state thinks is unreasonable.
Consecutive registration years where you have no declared miles travelled in a state, they have evidence that you did travel in that state.
You might want to contact the state (info is in the manual, link above) and ask them what they are specifically looking for.
Hope this helps. -
read this article: http://2290taxform.com/2011/06/13/irs-inspection-on-form-2290-e-file/
It will tell you how to safeguard yourself against IRS audit -
This is an IRP audit and the thread is eight months old. -
Well, we never heard back so might we presume the OP is now a "Guest of the State"??
BigJohn54 Thanks this.
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