Welcome to:

Welcome to:Welcome to:

Breakout Breakout Session #3Session #3

HodgepodgeHodgepodge

WithWith

Dawn Lietz – NVDawn Lietz – NVRichard Wagner – KYRichard Wagner – KYAudrey Martel - NHAudrey Martel - NH

TopicsTopics

Trip PermitsTrip PermitsRegistered WeightsRegistered WeightsUnreported OperationsUnreported OperationsRAD TruckingRAD Trucking

Trip PermitsTrip Permits How do you verify? What is on How do you verify? What is on

Permit?Permit? Verification of Fuel Tax PaidVerification of Fuel Tax Paid Verification of Registration Fees PaidVerification of Registration Fees Paid What to include with audit?What to include with audit? No permits foundNo permits found ExamplesExamples

What should I know?What should I know? State fee(s) for trip permits vary from State fee(s) for trip permits vary from

jurisdiction to jurisdictionjurisdiction to jurisdiction If you are not an IFTA licensee, the If you are not an IFTA licensee, the

operation of a qualified motor vehicle in a operation of a qualified motor vehicle in a jurisdiction may be authorized if the jurisdiction may be authorized if the jurisdiction has issued you a trip permit.jurisdiction has issued you a trip permit.

There is no IFTA trip permit authorizing There is no IFTA trip permit authorizing operation of a qualified motor vehicle in all operation of a qualified motor vehicle in all IFTA jurisdictions.IFTA jurisdictions.

The applicant must apply to each The applicant must apply to each jurisdiction they chose to travel in. jurisdiction they chose to travel in.

How to report when operating on a How to report when operating on a Trip PermitTrip Permit

R224 In-Jurisdiction DistanceR224 In-Jurisdiction DistanceIn-Jurisdiction means the total number of In-Jurisdiction means the total number of miles or kilometers operated by a miles or kilometers operated by a licensee’s qualified motor vehicle with a licensee’s qualified motor vehicle with a jurisdiction including miles/kilometers jurisdiction including miles/kilometers operated under an IFTA temporary permit. operated under an IFTA temporary permit. In-Jurisdiction Distance In-Jurisdiction Distance DOES NOT DOES NOT INCLUDE MILES OPERATED ONINCLUDE MILES OPERATED ON FUEL FUEL TAX TRIP PERMITTAX TRIP PERMIT or exempted from fuel or exempted from fuel taxation by a jurisdiction.taxation by a jurisdiction.

IRP Trip PermitIRP Trip Permit If you do not have apportioned If you do not have apportioned

plates, but need to cross into a plates, but need to cross into a jurisdiction with either a multi-axle jurisdiction with either a multi-axle vehicle or a vehicle (or combination) vehicle or a vehicle (or combination) over 26,000 pounds, you MUST over 26,000 pounds, you MUST obtain a TRIP PERMIT for any obtain a TRIP PERMIT for any jurisdiction you travel in.jurisdiction you travel in.

What is an IFTA Fuel Permit?What is an IFTA Fuel Permit? In accordance with R310 In accordance with R310

– In lieu of Motor Fuel Tax licensing under In lieu of Motor Fuel Tax licensing under this Agreement, persons may elect to this Agreement, persons may elect to satisfy Motor Fuels Use Tax Obligations satisfy Motor Fuels Use Tax Obligations on a Trip by Trip Basis.on a Trip by Trip Basis.

Key pointsKey points TRIP PERMITS NEED TO BE OBTAINED TRIP PERMITS NEED TO BE OBTAINED

PRIOR TO ENTERING A JURISDICTION.PRIOR TO ENTERING A JURISDICTION. TRIP PERMITS GENERALLY ARE OBTAINED TRIP PERMITS GENERALLY ARE OBTAINED

FROM A PERMIT SERVICEFROM A PERMIT SERVICE THE COST AND DURATION OF THE TRIP THE COST AND DURATION OF THE TRIP

PERMITS VARY FROM JURISDICTION TO PERMITS VARY FROM JURISDICTION TO JURISDICTIONJURISDICTION

Registered WeightsRegistered Weights►Are hauling weights reviewed if a Are hauling weights reviewed if a

motor vehicle is registered for less motor vehicle is registered for less than the maximum weight class?than the maximum weight class?

►What should be done if bills of lading What should be done if bills of lading show that a motor vehicle is show that a motor vehicle is consistently hauling above their IRP consistently hauling above their IRP registered weight?registered weight?

Registered WeightsRegistered Weights► IRS tax form 2290 – Weight Distance TaxIRS tax form 2290 – Weight Distance Tax►Taxes start above 55,000 lbsTaxes start above 55,000 lbs► In KY, during audits the past four years, In KY, during audits the past four years,

we have had over 100 motor vehicles we have had over 100 motor vehicles re-registered to weight classes above re-registered to weight classes above 55,000 lbs. All of these were found 55,000 lbs. All of these were found while auditing source documents that while auditing source documents that showed the trucks were consistently showed the trucks were consistently hauling above their registered weight.hauling above their registered weight.

Registered WeightsRegistered Weights

►Biggest offenders?Biggest offenders?

►Concrete MixersConcrete Mixers►Sanitation TrucksSanitation Trucks

►Estimated $100,000 in additional Estimated $100,000 in additional revenue yearly.revenue yearly.

Unreported OperationUnreported Operation• Information was requested from sister Information was requested from sister

Jurisdictions based on the simple question:Jurisdictions based on the simple question:

• How many unreported operations did you How many unreported operations did you find through audit during a specific time find through audit during a specific time period and how many quarters were period and how many quarters were audited?audited?

• Replies were received from three Replies were received from three JurisdictionsJurisdictions

Unreported OperationsUnreported Operations• During the course of XXX carriers During the course of XXX carriers

audited by these Jurisdictions, the total audited by these Jurisdictions, the total number of miles that were found number of miles that were found unreported was:unreported was:

•Xx,xxx,xxxXx,xxx,xxx

• Xxx carriers, xxx quarters, xx,xxx,xxx Xxx carriers, xxx quarters, xx,xxx,xxx miles of unreported operations. miles of unreported operations.

RAD TruckingRAD Trucking RAD Trucking is a Motor Carrier RAD Trucking is a Motor Carrier

operating one unit with very operating one unit with very consistent operation.consistent operation.

You will be given information in your You will be given information in your groups to find solutions to problems groups to find solutions to problems found during your audit of this found during your audit of this carrier.carrier.

RAD TruckingRAD Trucking This carrier reports one trip each week This carrier reports one trip each week

from Reno, NV to Minneapolis, MN from Reno, NV to Minneapolis, MN using PCMiler.using PCMiler.

Fuel card printouts show fuel is Fuel card printouts show fuel is purchased in Sparks, NV and North purchased in Sparks, NV and North Platte, NE (along PCMiler route).Platte, NE (along PCMiler route).

This one quarter was the only This one quarter was the only operations during the IRP Registration operations during the IRP Registration year and the IFTA return matches the year and the IFTA return matches the IRP return.IRP return.

RAD TruckingRAD Trucking

Total Miles: 47,598 Total Gallons: 7,845 MPG: 6.07

Total Taxable Taxable Tax Paid Net Taxable Tax (Credit) Interest Total

Jurisdiction Miles Miles MPG Gallons Gallons Gallons Tax Rate Due Due Due

Iowa IA 7,030 7,030 6.07 1,158 1,158 0.2250 260.58 260.58

Minnesota MN 2,751 2,751 6.07 453 453 0.2200 99.71 99.71

Nebraska NE 11,848 11,848 6.07 1,952 3,528 -1,576 0.2300 -362.50 -362.50

Nevada NV 10,348 10,348 6.07 1,705 4,314 -2,609 0.2700 -704.49 -704.49

Utah UT 5,135 5,135 6.07 846 846 0.2450 207.26 207.26

Wyoming WY 10,486 10,486 6.07 1,728 1,728 0.1400 241.85 241.85

Totals 47,598 47,598 7,842 7,842 0 -257.59 -257.59

RAD Trucking – Scenario ARAD Trucking – Scenario A During the audit you find 49,978 During the audit you find 49,978

odometer miles or 2,380 unreported odometer miles or 2,380 unreported miles (5%).miles (5%).

What additional information would What additional information would you request?you request?

What changes would you make to What changes would you make to total and taxable miles?total and taxable miles?

Are there any differences to your IRP Are there any differences to your IRP audit?audit?

RAD Trucking – Scenario BRAD Trucking – Scenario B In your audit information, you find some In your audit information, you find some

cash fuel receipts in Valentine, NE.cash fuel receipts in Valentine, NE. The driver tells you that his significant The driver tells you that his significant

other lives there and will occasionally other lives there and will occasionally go off-route to see that person.go off-route to see that person.

The documents showed three receipts The documents showed three receipts for 250 gallons and the driver could not for 250 gallons and the driver could not tell you exactly how many times he tell you exactly how many times he would have stopped in Valentine that would have stopped in Valentine that quarter.quarter.

RAD Trucking – Scenario BRAD Trucking – Scenario B

How would you use this How would you use this information to calculate your information to calculate your audited results on both the IFTA audited results on both the IFTA and IRP audit?and IRP audit?

RAD Trucking – Scenario CRAD Trucking – Scenario C It was a bad winter. A blizzard closed It was a bad winter. A blizzard closed

the highways across Nebraska. The the highways across Nebraska. The poor driver had to go out of his way poor driver had to go out of his way to get home. The driver went thru to get home. The driver went thru Kansas City, KS and across Kansas Kansas City, KS and across Kansas and part of Colorado.and part of Colorado.

You learn he did not obtain any You learn he did not obtain any permits for MO, KS, and CO.permits for MO, KS, and CO.

RAD Trucking – Scenario CRAD Trucking – Scenario C How would you handle the IFTA and How would you handle the IFTA and

IRP audit?IRP audit?

Would there be any additional steps Would there be any additional steps taken in your IRP audit because of taken in your IRP audit because of the travel in Jurisdictions that the the travel in Jurisdictions that the truck was not apportioned for?truck was not apportioned for?

RAD Trucking – Scenario DRAD Trucking – Scenario D During the audit you find 49,978 odometer During the audit you find 49,978 odometer

miles or 2,380 unreported miles (5%).miles or 2,380 unreported miles (5%). In your audit information, you find some In your audit information, you find some

cash fuel receipts in Valentine, NE.cash fuel receipts in Valentine, NE. The driver tells you that his significant The driver tells you that his significant

other lives there and will occasionally go other lives there and will occasionally go off-route to see that person.off-route to see that person.

The documents showed three receipts for The documents showed three receipts for 250 gallons and the driver could not tell 250 gallons and the driver could not tell you exactly how many times he would you exactly how many times he would have stopped in Valentine that quarter.have stopped in Valentine that quarter.

RAD Trucking – Scenario DRAD Trucking – Scenario D What additional information would What additional information would

you request for this audit?you request for this audit?

How would you handle any changes How would you handle any changes in the IRP and IFTA audit?in the IRP and IFTA audit?


Conclusion:Conclusion:

Trip PermitsTrip PermitsRegistered WeightsRegistered WeightsUnreported OperationsUnreported Operations


Documents

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