Ifta audit

When we got audited, it was IFTA and IRP. That makes sense because they are both based on miles traveled in each state. They just asked for 1 year of IRP and random couple quarters of IFTA. I got the feeling it was totally random, but I guess maybe the quarters they asked for could have put up some sort of red flags.

What they did was sent me a letter or email (I don’t recall) telling the quarters they were requesting. After that a few days passed and they sent a appointment to pickup the records, that gave me time to make sure everything was in order and to make copies of everything (do not give them your originals). The auditor showed up, I gave them the records they requested, signed some paperwork acknowledging I’m giving them possession of the paperwork, and they took the records with them and would be in contact if they needed anything else. I don’t recall the time lapsed but at some point they contacted me for a meeting to return my documents and discuss the audit findings.They gave me some guidance on how to correct some small mistakes they found, but other than that they told me to keep doing what I was doing.

Now, there is the rare instance where we only run in the state of TN the whole quarter. This makes what they call a “net zero tax return” and will red flag my account. I’ve talked to them in the IFTA office about it, because if all your miles are in the same state you buy your fuel in, it will be a net zero return.