IFTA/IRP Audit

There will be the difference in tax plus interest and penalty. Just like an IRS audit if you short payed them.

 

If you were using DOT logs for your mileage documentation, there is a good chance that a 100% base plate fee will be billed for IRP. DOT logs do not usually contain all necessary information required by IRP and will result in an inadequate determination. IRP audits have much higher record keeping requirements and stiffer penalties than IFTA. It depends on how lenient the base jurisdiction is. I hope that you have a very high base jurisdiction %. To figure out what a 100% fee will be take the amount of the base jurisdiction's plate fee from the bill and divide it by the base mileage % then multiply it by 100 then subtract out the plate fee already paid.

Example: Bases Jurisdicition % was 75% of miles, paid $1,125 to base jurisdiction -- 1,125 divided by 75% = 1,500 - 1,125 = $375 owed + interest + penalty = assessment total
Example: Bases Jurisdicition % was 25% of miles, paid $375 to base jurisdiction -- 1,125 divided by 25% = 1,500 - 375 = $1,125 owed + interest + penalty = assessment total

I agree that a year and half is WAY too long for an audit of this size. IFTA and IRP require 30 day notice before the audit, so there is a month, 1-2 months for the audit if you drop off the records, 1-2 months for the review and billing process so 6 months would be more like a good time line.

 

FormerINAuditor, please read my response to the other thread and let me know if you know of any attorneys that understand both IFTA and aggregate hauling.