NJ IFTA Audit

You are not required to purchase fuel in each state in which you run. You are required to pay the tax. How did you file your IFTA? Those need to file quarterly. You did file your IFTA? According to your profile, you have been trucking for 15 years. You should know what records to keep. Most carriers keep a written record of miles driven in each state. You could use PC Miler or Mapquest to reconstruct your state miles. But, you need to make sure your logs match. This is one business where you can't operate by the seat of your pants. You must keep accurate records. I keep all my load information in an envelope. Each load has it's own envelope. I write the miles, route information, fuel purchases, etc., on the outside of the envelope. I then transfer everything into my software. I can also scan all receipts, bills of lading, etc., into the software and should I get audited, all I need to do is print out what the auditor needs to see. Whether you write everything down in a composition book, use a spreadsheet of buy trucking software or general accounting software, you need to keep accurate records.

 

You won't have a fine for not buying fuel in the other states but will have to pay the tax, plus will have a penalty if you did not file on time or filed false information. Depending on where you run you need to change your purchase habits, just because the pump price is cheaper in NJ doesn't make that a good buy. NJ has one of the lowest fuel tax rates, so if you buy most of your fuel in NJ but run in Pa or NY, you will end up writing a check for the difference every quarter. For example, I am based in PA right on the NY and NJ border, I buy almost all of my fuel in PA, but run most of my miles in NY. I do this because Pa tax is higher than NY and I will receive a credit at the end of the quarter, but I also do it because there is a little fuel station in my home town that beats the best price I can get in NY or NJ by a large margin, especially after I take the taxes out of it.

Pa fuel today in Lords Valley PA $3.579 of which $0.51 is tax so the actual cost of fuel is $3.069
NY fuel today in Clifton Park NY $3.739 of which $0.4065 is tax so the actual cost of fuel is $3.339
and the real shock NJ Fuel $3.359 in Montague NJ of which $$0.175 is tax so the actual cost of fuel is $3.189.

With the real numbers above you can see how the fuel in PA was my best buy, beating NJ by about 12 cents per gallon, even though it is less than 1 mile out of my way to buy fuel in NJ, I would lose a lot of money if I just went for the cheapest pump price. If you bought all your fuel in NJ but ran most of your miles in NY you will owe almost 23 cents per gallon you bought in fuel when you file your IFTA return, so that can add up to a lot of money real fast to pay in one lump sum, it is better to pay it at the pump a little at a time every day.

Good luck with your audit.