My IFTA account is flagged

Discussion in 'Ask An Owner Operator' started by m16ty, Aug 11, 2022.

  1. m16ty

    m16ty Road Train Member

    Jan 22, 2016
    Well, I’ve been having to deal with my IFTA account today. After talking to somebody with the State of TN, a new policy is that anytime there is a net zero sum return, you account gets flagged.

    We do the vast majority of our trucking intrastate, therefore there are some quarters where we don’t travel outside of the state. This will equal a net zero sum return, because all mileage and gallons were within the State of TN. This now causes your account to be flagged and has to be reviewed by a agent.

    Also, while talking to the agent on the phone, I was informed that this is a new requirement from the IRS. When did the IRS become in charge of IFTA? It used to be just all the states cooperating with one another.

    I just have a feeling that with it seeming like the IRS seems to be taking over everything, and then with the new 87,000 IRS agents, we are all fixing to get screwed.
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  3. InTooDeep

    InTooDeep Donner party survivor

    Jan 17, 2016
    Carmichael CA
    I believe that right there is the answer
  4. Antinomian

    Antinomian Road Train Member

    Feb 17, 2013
    Imagine how many trucking companies in your state only run intrastate. "Flagged" would become meaningless if they flagged every one of them every quarter.

    Hopefully those 87000 new IRS agents will get laid off as soon as they are hired. The House and possibly the Senate will change hands after November.
  5. ProfessionalNoticer

    ProfessionalNoticer Road Train Member

    Apr 25, 2021
    See American History 101. Focus on the events that took place in 1861. Those events made it clear states rights do not exist and the Fed is now the only centralized all seeing power.
    Vampire, dirthaller, DRTDEVL and 5 others Thank this.
  6. m16ty

    m16ty Road Train Member

    Jan 22, 2016
    I just did a Google search about who controls IFTA. Everything on the Web says it is "an agreement among states". The TN IFTA office out right told me the new regulations were passed down from the IRS. She also fallowed up with a email that said the same thing.

    Here is the text of the email-
    "Good afternoon,

    Thank you for contacting the Tennessee Department of Revenue.

    I have attached the GA to the return and it will be processed for you soon. Thank you for that.

    We did receive your return on time, we just weren't able to process it with the net zero validation. While we do understand it is possible to get a net zero sum, the IRS still requires a signed legal statement from the taxpayer that the net zero is accurate and that no fraud is intended. It is just something we are required to ask for in this situation and unfortunately the system will not let us move forward without it.

    So, in short we will have to ask for this anytime a net zero is calculated.

    We appreciate your help in getting this taken care of.

    I hope you have a good evening."

    Again I ask, why does the IRS have anything to do with IFTA?
  7. m16ty

    m16ty Road Train Member

    Jan 22, 2016
    I have no idea how many people in TN run intrastate only and are signed up in IFTA, but I'd say the number is relatively small. In TN, if you run State tags and not apportioned, you don't have to have IFTA. We run apportioned tags because although a majority of are trips are within the State, we do travel outside of State every now and then.

    It seems like it comes in spurts with us. We will go out of state once a week or more sometimes, then we may go a quarter or more without crossing State lines.
    Last edited: Aug 11, 2022
  8. TallJoe

    TallJoe Road Train Member

    Apr 12, 2016
    More than once it happened that I received a refund from IFTA and why was it less suspicious than 0?

    I guess, ZERO has some mystical connotations and It is unthinkable for the agency to believe that a mere mortal can obtain such a devine figure from the infinite set of possibilities.

    IRS having something to do with IFTA is news to me too. IFTA is simply a mechanism of redistributing collected fuel taxes to participant states' treasuries.
    D.Tibbitt and m16ty Thank this.
  9. bonder45

    bonder45 Road Train Member

    Oct 2, 2011
    Williston, ND
    In the 2+ of running I’ve only paid once for IFTA… to me that would be a red flag.
  10. Oxbow

    Oxbow Road Train Member

    Nov 24, 2015
    We were recently selected for and went through an IFTA/IRP audit. The gal doing the audit worked out of the State Tax Commission office. After all was said and done we owed $13.79 to IFTA, but received a $4.23 refund from IRP. When I jokingly asked her if a weeks worth of her time was really worth getting that minuscule amount of revenue, she replied that it was a Federal requirement. I don't recall her mentioning the IRS though, but I do know that back in the 80s when fuel tanks were first being dipped to check for dyed fuel, it was IRS personnel that were doing the sampling, not the Port of Entry folks, at least here in Idaho.
  11. m16ty

    m16ty Road Train Member

    Jan 22, 2016
    If you travel in more than one state in a quarter, I can see where a zero sum would be very unusual. Because the different tax rates, where you purchased fuel, and the mileage in each state would have to line up perfectly to equal a zero sum. It would be almost impossible.

    That is a moot point in my situation though, because I clearly only reported 1 state on my IFTA return, so anybody that looks at the actual return can see what's going on, and tell it's not fraud. They don't look at it though, the system just automatically flags it.

    I have no real complaints with the State of TN. They have always been more than helpful anytime I've had to call them. The lady I talked to even apologized for the whole ordeal, but just said these were new mandates passed down by the IRS and they were just having to deal with them. Se even seemed kind of scared that the IRS would come down on her and the department if they didn't do everything "by the book".

    Mark my words, I bet it isn't no time before the whole IFTA deal is completely taken away from the states and put completely into Federal and IRS control. Makes you wonder what else the IRS is taking control of that we don't know about?
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