presented by ifta managers’ and law enforcement seminar september 19, 2008 meg cronk – new york...

Presented by

IFTA Managers’ and Law Enforcement Seminar

September 19, 2008

Meg Cronk – New YorkMeg Cronk – New York

Ron Hester - OntarioRon Hester - Ontario

WHAT YOU’LL LEARNWHAT YOU’LL LEARN

The Basics – core principles and The Basics – core principles and benefitsbenefits

How IFTA Works – from A to ZHow IFTA Works – from A to Z The Amendment Process – how The Amendment Process – how

IFTA changesIFTA changes Compliance – jurisdiction and Compliance – jurisdiction and

carrier – administrative and carrier – administrative and roadside enforcementroadside enforcement

IFTA 101 - Articles of IFTA 101 - Articles of AgreementAgreement

1. What does IFTA stand for?1. What does IFTA stand for?

A: R110A: R110

2. What is the purpose of IFTA?2. What is the purpose of IFTA?

A: R130A: R130


3. What is the purpose of a base 3. What is the purpose of a base jurisdiction?jurisdiction?

A: R212.100-.200A: R212.100-.200

4. What makes a vehicle qualify as an 4. What makes a vehicle qualify as an IFTA vehicle?IFTA vehicle?

A: R245A: R245


5. Who is required to have an IFTA 5. Who is required to have an IFTA license?license?

A: R305A: R305

6. A qualified IFTA carrier must base 6. A qualified IFTA carrier must base in the jurisdiction they are located in the jurisdiction they are located in.in.

A: R325 - FA: R325 - F


7. When should a base jurisdiction NOT 7. When should a base jurisdiction NOT issue an IFTA license to a carrier?issue an IFTA license to a carrier?

A:R335A:R335

8. Under what circumstance can a base 8. Under what circumstance can a base jurisdiction refuse renewal of an IFTA jurisdiction refuse renewal of an IFTA license?license?

A: R345.300A: R345.300


9. Failure to comply with all applicable 9. Failure to comply with all applicable provisions of the IFTA shall be grounds for provisions of the IFTA shall be grounds for suspension or revocation of a taxpayers suspension or revocation of a taxpayers IFTA license. IFTA license.

A: R420.100 - TA: R420.100 - T

10. The base jurisdiction is responsible for 10. The base jurisdiction is responsible for issuing one license and two decals per issuing one license and two decals per taxpayer vehicle. taxpayer vehicle.

A: R620 & R625 - FA: R620 & R625 - F


11. What is the licensee required to do 11. What is the licensee required to do with the license and decals? with the license and decals?

A: R620-R625A: R620-R625

12. What is the grace period for IFTA 12. What is the grace period for IFTA license renewal? license renewal?

A: R655.200A: R655.200


13. A member jurisdiction may exempt 13. A member jurisdiction may exempt from taxation any use of motor fuel from taxation any use of motor fuel within its jurisdiction. within its jurisdiction.

A: R830.100 - TA: R830.100 - T

14. What requirements must a licensee 14. What requirements must a licensee meet to be able to file an annual meet to be able to file an annual return instead of filing quarterly? return instead of filing quarterly?

A: R930.200A: R930.200


15. When is the quarterly IFTA Return due? 15. When is the quarterly IFTA Return due?

A: R960.100A: R960.100

16. A licensee may claim a tax-paid credit 16. A licensee may claim a tax-paid credit on the IFTA Tax Return for fuel purchased on the IFTA Tax Return for fuel purchased at retail regardless of whether the fuel is at retail regardless of whether the fuel is placed into the fuel tank of qualified placed into the fuel tank of qualified motor vehicles. motor vehicles.

A: R1010.100 A: R1010.100 - F- F


17. Any credits a licensee accumulates 17. Any credits a licensee accumulates and is not refunded will be applied and is not refunded will be applied to future tax reporting periods until to future tax reporting periods until it has been fully used or eight it has been fully used or eight calendar quarters have passed from calendar quarters have passed from the end of the calendar quarter in the end of the calendar quarter in which the credit accrued. which the credit accrued.

A: R1120.100 - TA: R1120.100 - T


18. A base jurisdiction has 60 days after 18. A base jurisdiction has 60 days after receipt of request from a licensee to receipt of request from a licensee to issue a refund. issue a refund.

A: R1150 - FA: R1150 - F

19. What penalty may the base 19. What penalty may the base jurisdiction assess a licensee for jurisdiction assess a licensee for failing to file a tax return? failing to file a tax return?

A: R1220.100A: R1220.100


20. The base jurisdiction must distribute a 20. The base jurisdiction must distribute a penalty received from a licensee to all travel penalty received from a licensee to all travel jurisdictions. jurisdictions.

A: R1220.200A: R1220.200 - F- F

21. U.S. and Canadian Jurisdictions, for itself 21. U.S. and Canadian Jurisdictions, for itself and on behalf of the other jurisdictions, shall and on behalf of the other jurisdictions, shall assess interest on all delinquent taxes due assess interest on all delinquent taxes due each jurisdiction at the rate of one per cent each jurisdiction at the rate of one per cent per month. per month.

A: R1230.100 & .200A: R1230.100 & .200 - F- F


22. The base jurisdiction shall audit its 22. The base jurisdiction shall audit its licensees on behalf of all member licensees on behalf of all member jurisdictions. jurisdictions.

A: R1310 - TA: R1310 - T

23. What does the Audit Manual 23. What does the Audit Manual Contain? Contain?

A: R1340A: R1340


24. A member jurisdiction may re-audit a 24. A member jurisdiction may re-audit a licensee if said member jurisdiction licensee if said member jurisdiction notifies the base jurisdiction and licensee notifies the base jurisdiction and licensee of reasonable cause for the re-audit. of reasonable cause for the re-audit.

A: R1360.200 - TA: R1360.200 - T

25. What are the 3 conditions a 25. What are the 3 conditions a jurisdiction must comply with for jurisdiction must comply with for membership in IFTA? membership in IFTA?

A: R1510.100 & .200 & .300A: R1510.100 & .200 & .300


26. How many days does a member 26. How many days does a member jurisdiction have to vote on the jurisdiction have to vote on the resolution of expulsion of a member resolution of expulsion of a member jurisdiction who has failed to bring its jurisdiction who has failed to bring its IFTA program into compliance? IFTA program into compliance?

A: R1555.200.020A: R1555.200.020

27. Who can submit a ballot proposal? 27. Who can submit a ballot proposal?

A: R1600A: R1600


28. What is the difference between a short 28. What is the difference between a short track ballot and a long track ballot? track ballot and a long track ballot?

A: R1625 & R1630A: R1625 & R1630

29. A Consensus Board Interpretation (CBI) is 29. A Consensus Board Interpretation (CBI) is issued by the Board of Trustees in response issued by the Board of Trustees in response to a request for clarification/interpretation to a request for clarification/interpretation of IFTA requirements stated in the article of of IFTA requirements stated in the article of Agreement, Procedures Manual or Audit Agreement, Procedures Manual or Audit Manual. Manual.

A: R1710 – 1720 - TA: R1710 – 1720 - T


30. A CBI must be presented at the 30. A CBI must be presented at the annual meeting and requires an annual meeting and requires an affirmative vote of three fourths of affirmative vote of three fourths of the member jurisdictions for the member jurisdictions for ratification and inclusion as ratification and inclusion as commentary in the IFTA Governing commentary in the IFTA Governing document. document.

A: R1720.100 - TA: R1720.100 - T


31. A CBI that has been ratified is NOT 31. A CBI that has been ratified is NOT binding on the membership. binding on the membership.

A: R1720.200 - FA: R1720.200 - F

32. The IFTA, Inc Clearinghouse is 32. The IFTA, Inc Clearinghouse is responsible for the maintenance and responsible for the maintenance and administration of only licensee administration of only licensee demographic information. demographic information.

A: R2110 - FA: R2110 - F

IFTA 101 – Procedures ManualIFTA 101 – Procedures Manual

1. List two requirements of information 1. List two requirements of information that must be included on the IFTA that must be included on the IFTA license application. license application.

A: P105 – 155A: P105 – 155

2. Decals must be 4” X 4” with black 2. Decals must be 4” X 4” with black letters and a background color as letters and a background color as specified for the current year. specified for the current year.

A: P320.100 - FA: P320.100 - F

IFTA 101 – Procedures IFTA 101 – Procedures ManualManual

3. Jurisdictions are required to impose a 3. Jurisdictions are required to impose a decal feedecal fee

to recover administration costs. to recover administration costs. A: P320.300 - FA: P320.300 - F

4. Name two substitutes a taxpayer may use 4. Name two substitutes a taxpayer may use to to

secure their IFTA license in lieu of a surety secure their IFTA license in lieu of a surety bond. bond. A: P430.100.200.300.400.500A: P430.100.200.300.400.500


5. A taxpayer must make supporting tax return 5. A taxpayer must make supporting tax return documentsdocuments

available for audit for how long? available for audit for how long? A: P510.100A: P510.100

6. A taxpayer’s tax paid retail purchases must be 6. A taxpayer’s tax paid retail purchases must be supported by a receipt or invoice, credit card supported by a receipt or invoice, credit card

receipt, receipt, automated vendor generated invoice or automated vendor generated invoice or

transactiontransaction listing, or microfilm/microfiche of the receipt orlisting, or microfilm/microfiche of the receipt or invoice. invoice. A: P560.100 - TA: P560.100 - T


7. When may a licensee claim a tax paid credit 7. When may a licensee claim a tax paid credit on the IFTA tax return for bulk fuel? on the IFTA tax return for bulk fuel?

A: P570.400A: P570.400

8. On board recording devices, vehicle tracking 8. On board recording devices, vehicle tracking systems or other electronic data recording systems or other electronic data recording systems may be used as optional use for fuel systems may be used as optional use for fuel tax reporting in lieu of or in addition to hand tax reporting in lieu of or in addition to hand written trip reports for tax reporting written trip reports for tax reporting

A: P610 - TA: P610 - T


9. What are 3 of the 7 minimum requirements a 9. What are 3 of the 7 minimum requirements a taxpayer’staxpayer’s

on board recording or vehicle tracking device on board recording or vehicle tracking device mustmust

meet? meet? A: P660A: P660

10. The IFTA tax return provided by the base 10. The IFTA tax return provided by the base jurisdiction to the taxpayer must include places jurisdiction to the taxpayer must include places for the taxpayer to enter the information for the taxpayer to enter the information necessary to calculate the vehicles MPG/KPL. necessary to calculate the vehicles MPG/KPL.

A: P710 - TA: P710 - T


11. How long is a base jurisdiction required 11. How long is a base jurisdiction required by IFTA to keep a taxpayer’s records? by IFTA to keep a taxpayer’s records?

A: P920.200A: P920.200

12. Transmittal reports submitted by 12. Transmittal reports submitted by Canadian Jurisdictions can be in Canadian Jurisdictions can be in international customary measures and international customary measures and Canadian dollars. Canadian dollars.

A: P1030.200 - TA: P1030.200 - T


13. What is the minimum number of 13. What is the minimum number of transmittals a base jurisdiction must send a transmittals a base jurisdiction must send a travel jurisdiction each year? travel jurisdiction each year?

A: P1040A: P1040

14. A base jurisdiction received $300,000 of 14. A base jurisdiction received $300,000 of IFTA taxpayer money as a result of returns IFTA taxpayer money as a result of returns filed during the month of January. This filed during the month of January. This money must be distributed to the money must be distributed to the appropriate jurisdictions by? appropriate jurisdictions by?

A: P1040A: P1040


15. To disperse taxpayer monies due to 15. To disperse taxpayer monies due to travel jurisdictions, a base jurisdiction travel jurisdictions, a base jurisdiction may either allocate the actual amount may either allocate the actual amount received from taxpayers or assume the received from taxpayers or assume the liabilities for the payments made to the liabilities for the payments made to the travel jurisdictions based on what the travel jurisdictions based on what the taxpayers report on their returns. taxpayers report on their returns.

A: P1060.100.200 – T - February 28 A: P1060.100.200 – T - February 28 (February 29, if leap year)(February 29, if leap year)

16. What is the reporting period for a base 16. What is the reporting period for a base jurisdiction’s IFTA Annual Report? jurisdiction’s IFTA Annual Report?

A: P1110.200A: P1110.200


17. List 3 requirements for a base 17. List 3 requirements for a base jurisdiction Annual Report.jurisdiction Annual Report.

A: P1110.300A: P1110.300

18. When must a tax rate change 18. When must a tax rate change notification be issued by a notification be issued by a jurisdiction so that all other jurisdiction so that all other jurisdictions are responsible for jurisdictions are responsible for collecting the tax at the new rate? collecting the tax at the new rate?

A: P1120.300A: P1120.300


19. What is the purpose of a program 19. What is the purpose of a program compliance review? compliance review?

A: P1210A: P1210

20. Units of measure and currency, 20. Units of measure and currency, whether U.S. or Canadian, shall be whether U.S. or Canadian, shall be accepted in the measurement or accepted in the measurement or currency authorized by the currency authorized by the licensee’s base jurisdiction. licensee’s base jurisdiction.

A: P1310 - TA: P1310 - T

IFTA 101 – Audit ManualIFTA 101 – Audit Manual

1. The purpose of the audit guidelines is to 1. The purpose of the audit guidelines is to establish a uniform procedure for IFTA establish a uniform procedure for IFTA jurisdictions to follow in establishing jurisdictions to follow in establishing jurisdiction audit procedures, employing and jurisdiction audit procedures, employing and supervising audit staff, planning and supervising audit staff, planning and conducting audits, and reporting audit conducting audits, and reporting audit findings findings

A: A100 - TA: A100 - T 2. What should the pre-audit analysis of a 2. What should the pre-audit analysis of a

taxpayer consist of? taxpayer consist of? A: A220.100 A: A220.100


3. What percentage of audits is a base 3. What percentage of audits is a base jurisdiction required to complete jurisdiction required to complete per year? per year?

A: A310A: A310

4. What percentage of the audits must 4. What percentage of the audits must be low distance accounts? be low distance accounts?

A: A320A: A320


5. Auditors must have supervisory 5. Auditors must have supervisory follow-up and review of their audit follow-up and review of their audit procedures.procedures.

A: A400.200 - TA: A400.200 - T

6. All licensees are subject to audit. 6. All licensees are subject to audit.

A: A420.100 - TA: A420.100 - T


7. What factor of the licensee’s accounting 7. What factor of the licensee’s accounting system should audit emphasis be placed on? system should audit emphasis be placed on?

A: A520A: A520

8. Unless a specific situation dictates, all audits 8. Unless a specific situation dictates, all audits will be conducted on a sampling basis. An will be conducted on a sampling basis. An agreement that the sampling methodology is agreement that the sampling methodology is appropriate should be signed by the licensee appropriate should be signed by the licensee and the auditor. and the auditor.

A: A530.400 - TA: A530.400 - T


9. The audit will be completed using the 9. The audit will be completed using the best information available to the base best information available to the base jurisdiction. The burden of proof is on jurisdiction. The burden of proof is on the licensee. the licensee.

A: A540.200 - TA: A540.200 - T

10 List 3 factors an auditor has the 10 List 3 factors an auditor has the authority to use to estimate a licensee’s authority to use to estimate a licensee’s fuel use if adequate records are fuel use if adequate records are unavailable. unavailable.

A: A550.100.005-.025 A: A550.100.005-.025


11. How many days prior to the audit should the 11. How many days prior to the audit should the licensee be contacted in writing and advised licensee be contacted in writing and advised of the approximate date that an audit is to be of the approximate date that an audit is to be conducted? conducted?

A: A610A: A610

12. Name the identifiable phases the auditor’s 12. Name the identifiable phases the auditor’s study and evaluation of the licensees internal study and evaluation of the licensees internal accounting control system should consist of. accounting control system should consist of.

A: A640.100-.400A: A640.100-.400


13. Except as outlined in A650.200, a 13. Except as outlined in A650.200, a documented closing conference shall be documented closing conference shall be held with the licensee outlining preliminary held with the licensee outlining preliminary findings to include applicable penalty and findings to include applicable penalty and interest, recommendations, rights of appeal interest, recommendations, rights of appeal and identifying the person to whom the and identifying the person to whom the audit report should be addressed. audit report should be addressed.

A: A650.100 – TA: A650.100 – T

14. Make a list of 5 elements of information 14. Make a list of 5 elements of information that must be included in the auditor’s that must be included in the auditor’s reportreport

A: A660.100.005-.060 A: A660.100.005-.060


15. List 3 elements of information that 15. List 3 elements of information that must be listed on the must be listed on the interjurisdictional report. interjurisdictional report.

A: A660.200.005-.040 A: A660.200.005-.040

16. What is the purpose of the audit 16. What is the purpose of the audit documentation? documentation?

A: A670.100-.500 A: A670.100-.500


17. Within how many days of furnishing the 17. Within how many days of furnishing the licensee with the finalized licensee Audit licensee with the finalized licensee Audit Report and its customary notification of Report and its customary notification of assessment and billing must the assessment and billing must the commissioner send an interjurisdictional commissioner send an interjurisdictional report to all affected jurisdictions report to all affected jurisdictions

A: A690.200A: A690.200

18. Fuel tax adjustments resulting from audit 18. Fuel tax adjustments resulting from audit findings will be documented and included on findings will be documented and included on monthly transmittals.monthly transmittals.

A: A690.400 - TA: A690.400 - T


19. If the licensee is in disagreement with 19. If the licensee is in disagreement with the audit findings, they may request any the audit findings, they may request any or every jurisdiction to audit their or every jurisdiction to audit their records. records.

A: A730A: A730

20. If a licensee makes the above described 20. If a licensee makes the above described request, a jurisdiction is obligated to request, a jurisdiction is obligated to oblige.oblige.

A: A730 - FA: A730 - F

QuestionsQuestions

presented by ifta managers’ and law enforcement seminar september 19, 2008 meg cronk – new york...

Documents

base jurisdiction

ifta vehicle

purpose of ifta

quarterly ifta

ifta license renewal

taxpayers ifta license

ifta tax return

qualified ifta carrier