IFTA/IRP audit

[SquareOne]

Well...looks like the good MPG bit me in the a$$. Guess it was only a matter of time. Just started what could be a month long IFTA audit. Within the last couple hours spent meeting with the auditor, I gave them all the info I have...fuel reciepts, trip details (well currently in the process of sending all the trips now), computer software, etc... Seems like the high MPG is an issue.

I explained my process...drive 58-62, closely monitor gauges, engine health tip top, usually run at night for lack of traffic and start/stops at traffic lights, use the terrain to assist with momentum, high percentage of deadhead due to what I haul, flat ground @ sea level, etc. Apparently the auditor doesn't know if this will be enough for the manager to approve since they expect to see somewhere in the 5.5-6.5mpg range for a truck of that age and mileage. I explained that I hand calculate every tank and it's written on every fuel receipt. It's a way for me to catch an issue as soon as the fuel mileage starts slipping. I even offered a ride along to understand how the truck is driven....

Damn if ya do, damn if ya don't....everyone wants a little larger slice of the pie.

Dunno how this is gonna go, but I'll keep ya posted...any advice is appreciated

[hookliftpete]

Yikes....if your mpg is 'so high', are they thinking you are stealing fuel or just not reporting accurately?

[SquareOne]

(07-07-2023 )hookliftpete Wrote:  Yikes....if your mpg is 'so high', are they thinking you are stealing fuel or just not reporting accurately?

Supposed to be a 'random' selection, but it seems anything but. Lucky me...

It sounded to me like they are implying I'm not properly reporting. My odometer is a hair off, but if anything, the minuscule amount would be in their favor, not mine.

[Rawze]

(07-07-2023 )SquareOne Wrote:  Well...looks like the good MPG bit me in the a$$. Guess it was only a matter of time. Just started what could be a month long IFTA audit. Within the last couple hours spent meeting with the auditor, I gave them all the info I have...fuel reciepts, trip details (well currently in the process of sending all the trips now), computer software, etc... Seems like the high MPG is an issue.

I explained my process...drive 58-62, closely monitor gauges, engine health tip top, usually run at night for lack of traffic and start/stops at traffic lights, use the terrain to assist with momentum, high percentage of deadhead due to what I haul, flat ground @ sea level, etc. Apparently the auditor doesn't know if this will be enough for the manager to approve since they expect to see somewhere in the 5.5-6.5mpg range for a truck of that age and mileage. I explained that I hand calculate every tank and it's written on every fuel receipt. It's a way for me to catch an issue as soon as the fuel mileage starts slipping. I even offered a ride along to understand how the truck is driven....

Damn if ya do, damn if ya don't....everyone wants a little larger slice of the pie.

Dunno how this is gonna go, but I'll keep ya posted...any advice is appreciated

yeah... there is a couple that owns a volvo w ISX out in california.. started breaking 9+ mpg on their IFTA after taking advice of slowing down, and driving light on the pedal for max profits. They were audited 3 times in 3 years. Finally the auditor insisted on being on a trip with them to prove their fuel mileage. The auditor finally shut up and left them alone after seeing was believing.

[SquareOne]

It's a pain just to have to deal with all this. I just spent a few hours compiling all the info and emailing it over to the auditor. This was after I sat with her for about 3hrs or so as well. Can't help but assume this is going to drag for quite sometime. Auditor is just doing her job (and she's very thorough) so no shade on her, but I certainly don't buy the random BS once the fuel mileage was mentioned multiple times and continuously questioned. Then of coarse, there was the manager not being able to approve the audit with the info I'm providing.

Seriously, at this point, the damn IRS audit I had years back was easier It's what we all have to deal at some point or another, but damn....it just seems those who dot "I's," cross "T's," are usually the ones to get F'd with.

[SquareOne]

Well, after 2 months the IFTA / IRP audit (at least for this time) is over with. Long story short, everything matched correctly and they did accept the calculated fuel mileage for the reported quarters. To achieve there approval, this is what they required...

- July 1, 2020 to June 30, 2022 federal mileage reporting
- All daily 'trips' for the period in question
- All fuel receipts for the period in question
- Worksheets that show the compilation of quarterly reported miles and miles for the IRP renewals
- Any other documentation which would assist in proving my case

For just a one truck operation at that time, it was plenty of info nonetheless. I asked her about the process taking 2 months for a small company and what they do for a large company. To my surprise she mentioned they didn't have the man-power to audit larger companies. Therefore, they take on smaller ones to meet the audit quota. I think that's ridiculous, but a necessary evil us smaller guys have to deal with.

In the end, out of over 200k miles and countless trips, there was one 105 gallon discrepancy. Apparently there was one receipt missing for that 105 gallons purchased and I ended up getting a bill for $26 to cover the taxes which I supposedly didn't pay. Now, with all that documentation and how accurate everything else was (as in quite literally 100% within all other categories of reporting), do I think it was possible she made a mistake --- absolutely! At that point though, after 2 months and now 2.5hrs into my audit assessment, I just wrote a damn check for the 'amount owed' and let this $hit be done!

Maybe this info will help others who have this situation show up at random. It's imperative that you keep EVERY fuel receipt in order to prove you paid taxes on the fuel purchased. Depending on the auditor, they will certainly comb through all Uitems presented to them. I have a pretty solid system and can pull anything they request and show prove of whatever they need, yet somehow I still 'owed' that measly $26. Just be prepared in the event any of you guys have to go through this. You will have to defend any info reported and unfortunately they get to choose the time period and the amount of documentation they want to see. Until next time....

[Rawze]

(09-16-2023 )SquareOne Wrote:  Well, after 2 months the IFTA / IRP audit (at least for this time) is over with. Long story short, everything matched correctly and they did accept the calculated fuel mileage for the reported quarters. To achieve there approval, this is what they required...

- July 1, 2020 to June 30, 2022 federal mileage reporting
- All daily 'trips' for the period in question
- All fuel receipts for the period in question
- Worksheets that show the compilation of quarterly reported miles and miles for the IRP renewals
- Any other documentation which would assist in proving my case

For just a one truck operation at that time, it was plenty of info nonetheless. I asked her about the process taking 2 months for a small company and what they do for a large company. To my surprise she mentioned they didn't have the man-power to audit larger companies. Therefore, they take on smaller ones to meet the audit quota. I think that's ridiculous, but a necessary evil us smaller guys have to deal with.

In the end, out of over 200k miles and countless trips, there was one 105 gallon discrepancy. Apparently there was one receipt missing for that 105 gallons purchased and I ended up getting a bill for $26 to cover the taxes which I supposedly didn't pay. Now, with all that documentation and how accurate everything else was (as in quite literally 100% within all other categories of reporting), do I think it was possible she made a mistake --- absolutely! At that point though, after 2 months and now 2.5hrs into my audit assessment, I just wrote a damn check for the 'amount owed' and let this $hit be done!

Maybe this info will help others who have this situation show up at random. It's imperative that you keep EVERY fuel receipt in order to prove you paid taxes on the fuel purchased. Depending on the auditor, they will certainly comb through all Uitems presented to them. I have a pretty solid system and can pull anything they request and show prove of whatever they need, yet somehow I still 'owed' that measly $26. Just be prepared in the event any of you guys have to go through this. You will have to defend any info reported and unfortunately they get to choose the time period and the amount of documentation they want to see. Until next time....

I have always over-paid any required taxes like that by a little bit (always by under-claiming an item or 3, or double claiming something slightly in their favor by purposeful mistake). As soon as they start screwing with me, I start finding where I over-paid a bit ehemm '''by mistake" .. and they leave me alone real fast once they see that they owe me moneys instead.


Now .. because you had to paid them, ... it is on their records in their system that you owed them moneys during your last audit, and this opens you up for further investigations and more random checking in the future.

Just the beer talkin'.

[SquareOne]

(09-16-2023 )Rawze Wrote:  I have always over-paid any required taxes like that by a little bit (always by under-claiming an item or 3, or double claiming something slightly in their favor by purposeful mistake). As soon as they start screwing with me, I start finding where I over-paid a bit ehemm '''by mistake" .. and they leave me alone real fast once they see that they owe me moneys instead.

Thats an interesting way to do it, although it would seem like the 'mistake' would actually cause them to investigate further due to the 'discrepancy.' I guess in all reality, it IS about the money, so as long as it fattened their end, maybe they would be more keen to let it slide lol

(09-16-2023 )Rawze Wrote:  Now .. because you had to paid them, ... it is on their records in their system that you owed them moneys during your last audit, and this opens you up for further investigations and more random checking in the future....

Funny you bring that up, because I asked her exactly how 'random' this audit deal really was and the likelihood of getting chosen again. According to MY auditor, only a few years ago the company in question only had to prove 75% of their reported IFTA/IRP figures. Now that figure is closer to the 95% range (again according to her). It's at the auditor's discretion as to make a judgement call on the company in question - so if that company in question is near (but below) the percentage threshold of proving those reported miles/gallons , the auditor can be the one to determine if additional action needs to be taken.

Auditor's answer to their regional manager who then have to approve what the auditor has discovered and what action has been taken. All this for her to tell me this - aside from attempting to defraud the IFTA/IRP process, there is no radar or reason to be directly chosen in the future. Whether that's the truth, I have no idea.... I certainly won't hold my breath.

BTW, out of curiosity I asked her what was the highest bill she had to deliver to a company. Her response - over 53k dollars due to that company purchasing bulk fuel with no real record keeping to prove taxes paid or where that fuel was burned.

[MCRENT]

I just got done with my second RANDOM audit in 3 years, 1 truck operation here too, total BS.. 2019-20 last time and 2021-22 this time.. They found nothing in the 1st one and claimed I was off 1000 Cali miles and 500 Nevada Miles for this one.. I say BS to auditor.. asked how they come up with that and she say we put your destinations in the computer and it tells us how many miles you should have.. I say then WHY do I have to give you all the routes I take on my trip logs.. Had explain to her that I rarely take the fastest least miles to avoid the big city or I am on a permit load and have to go a certain route.. She acted like nobody had ever mention that to her but would put it in her report and request a no change audit to her higher ups. Hopefully they leave me alone now.