Tracking IFTA miles?

The best way is to write down your mileage each time you cross a state line. You can also use a program such as pc miler or a gps. There have been some who have posted that they have a trucking gps and download the miles by state at the end of the quarter.

 

I will add that I use trip envelopes for each load. I write miles, gallons, etc., on the outside of the envelope. I key in all the load information into my software and then print out the IFTA report at the end of the quarter. My state offers online IFTA reporting, so when I print out the IFTA report, all I need to do is copy the miles and gallons from my report. You can use a spreadsheet, but I find it much easier to keep it in my trucking software. That also has all my revenue and other expenses so I know how I did on each load and year to date.

 

Mileage documentation must include routes of travel and/or beginning and ending odometer readings per both IFTA and IRP regulations. A lot of drivers and companies miss this requirement thinking if the stops and miles by jurisdiction are present then the mileage documentation is adequate. It is not. IRP can be a real stickler for this requirement. As of 2013, IRP adopted language to make records either adequate or inadequate. Inadequate records have a stiff penalty.

State line odometer readings will give you the least problems in an audit situation. They are the most accurate and show that driver takes the time and effort to comply. These will be give a high level of confidence, meaning a low level of testing. Gaps would be the main problem here.

Using a PC Miler program as the sole means of tracking miles is not a good system. The IFTA and IRP regulations require actual miles. Most times PC Miler does not follow the route the vehicle actually traveled and people do not take the time to adjust it. If you don't want to record state line odometer readings, the next best thing is to determine total trip miles from ending odometer reading - beginning odometer reading then adequately divide miles among the jurisdictions from a routing program that used the same route the truck actually ran. In most cases, there will be a difference between actual miles and routed. Those miles should be allotted to with any jurisdictions with detours or stops, usually the beginning and ending jurisdictions. In an audit situation, this will give a good level of confidence in the records.

When using odometer readings, be sure that there are not gaps between trips or quarters. Many times drivers and companies don't want to use odometer readings. I'm not sure why. The taxes are assessed on gallons consumed. Miles are a way to divide the gallons purchased. Odometer readings will limit the overall total miles that can be calculated by the auditor. Limiting miles makes the MPG more reasonable. If there are problems, the auditor may calculate additional miles. Additional miles will make the MPG go down. If the MPG is too low it would indicate missing fuel. Missing fuel can result in an assessment. Odometers limit the miles.

If you choose to go with a trucking GPS be sure to download the actual information not just the miles by jurisdiction summary at the end of each quarter. Too many times during an audit the taxpayer will present the summary but not the actual documentation used to determine the miles. By then it may be too late to download this information depending on the company's storage time frame. If the original documentation cannot be reviewed, the reported summary is not enough for IFTA and IRP record keeping requirements. The records will deemed the inadequate and it will cost you. Yes, the records were probably more accurate than most companies but cannot be audited. It is a shame to have to assess companies that had a system in place but cannot prove it with the documentation.

 

I personally use 5 in one logs I don't cross many state lines in a day so the 5 lines they provide is enough for me. Wrote down the last 4 on the odometer when I cross a state line and add it up at the end of the day. That works although a GPS is more accurate, I don't want to waste $300-$500 just for ifta purposes...talk to me after I get audited though and have to pay the fines for milage not adding up and see what I'm saying then. When you break it down the $300-$500 is well worth the investment if it saves you from fines in the long run. But until I get fined I can't justify the gps.

 

Actually if you have state line odometer readings, your chance of the mileages changing during an audit is VERY low unless you have gaps between trip sheets or quarters. Now all you have to worry about is the fuel documented properly.

 

I don't own my own truck anymore but when I did it was before Qualcomms where in wide use and I use to just do as the other recommend and record my miles per trip and whenever I crossed a state line.

My 2nd truck I contracted on with a company that required a Qualcomm and it did it all for me and loved it.

With new requirements for electronic reporting of HOS as of 2015 you might as well invest in one now. You should contact your local trucking association who might offer discounts or even leasing options. Either way I would contact the U.S. Small Business Administration (SBA) and tell them you are looking for loan to make your compliant with new federal regulations which have been place on you company.

 

My question is... as far as doing the taxes at the end of every quarter... if I just keep all my fuel receipts and all my shipping papers (my BOL's etc), will I be able to do my taxes just with those - basically calculate miles driven in every state...?

 

I use trucklogger for my daily logs, but it also has a bunch of reporting features, as well as mileage tracking. So for each trip you can enter a new odometer record for your various state line odometer readings, then before you do your IFTA report, print out the data for each trip. I also enter my fuel stops into the trucklogger software, and generate a "Fuel Report" monthly for Oregon, and Quarterly for IFTA, Kentucky, and New Mexico.

I think "DDL" has a module for IFTA reports, too.

 

Yeah, you probably can, but it's hard to remember them all, and it will take forever to do the prep. Technically, it's possible. Just be sure to have documented the route you took, etc. so you are providing "adequate" records, as another TTR user points out above.