Idaho State Tax Commission

Idaho State Tax Commission

IFTA Licensees

tax.idaho.gov/ifta

Audits

IFTA rules requires Idaho to audit a certain percentage of its accounts each year. This means your chances of being audited are good.

The Tax Commission randomly selects IFTA licensees for audit based on IFTA Agreement requirements. If you're selected, an auditor will contact you at least 30 days before the audit. IFTA audits are usually conducted along with IRP* audits, using the same audit periods. If you have general questions about IFTA or IRP audits, please contact the Fuel Tax and Registration Fee (FTRF) Audit Unit.

*IRP = International Registration Plan

The statute of limitations for Idaho licensees is three years but can be extended by mutual consent. This means that your audit should normally cover a period of three years or less. After the audit, we'll send you a report by mail. We'll also send a summary of the audit findings to any member jurisdiction affected by the audit. Idaho will collect any fuel taxes, penalty, and interest you owe and transmit the funds to the appropriate jurisdictions, or refund any overpayment you're due from Idaho and other member jurisdictions.

Keep accurate records

You must keep accurate fuel and mileage records to avoid owing more tax. You should have original documents supporting the mileage traveled in each jurisdiction, as well as original fuel receipts. You must keep these records for at least four years.

Insufficient, inadequate records (P570) and audit adjustments (A350 and A360)

If you don't provide adequate fuel and mileage records to the auditor, the Tax Commission may make adjustments to the amount of your tax due or refund. Not providing any records may result in an inadequate records assessment. An inadequate records assessment could mean that your IFTA fleet MPG is reduced by as much as 20 percent. Poor records for an individual vehicle may result in an audit adjustment for that vehicle. The adjustment can be based on filing history, records from third parties, or industry averages., The specific vehicle may also have its MPG reduced by 20 percent or to 4.00 MPG. The adjustment may be the final determination, unless you can provide more information to show that it's incorrect.

Request for a redetermination and appeal (R1400)

You can request a redetermination of the IFTA audit results we issued. You must file your request for redetermination in writing within 30 days after the audit report date. If you don't make a request within 30 days, the audit result is final and no change can be made to the audit findings.

Once you've filed your redetermination request, we'll give you a reasonable amount of time to submit more information to support your request. Your request may be forwarded to our Appeals unit for a decision. You can request an informal hearing and appear in person or be represented. You can produce witnesses, documents, or other information to support your appeal. The Tax Commission will send you the results of your redetermination request.

You can appeal the Tax Commission's decision to the Idaho Board of Tax Appeals or an Idaho district court. If you still disagree with the decision, you can request any or all member jurisdictions to audit your records.

Each jurisdiction can accept or deny the request. Each jurisdiction that accepts will audit distance traveled and fuel purchases in its jurisdiction that you reported to Idaho during the audit periods. You must make your records available at a place chosen by those member jurisdictions.

These audit requests for redetermination will proceed under the fuels tax laws of that jurisdiction.

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August 28, 2017