By: Trina Kluever Pauli (WI) Ghyslaine Lepage (QC) Krystal Miller (NH) IFTA TAX RETURNS By: Trina Kluever Pauli (WI) Ghyslaine Lepage (QC) Krystal Miller (NH)

You reported what ? We all receive strange tax returns, for example: Total miles does not equal total jurisdictional miles Identical returns which occur every quarter MPG is always a 4.0, 5.0 or 6.0 Total Miles and Jurisdictional Miles appear to be estimated numbers based on rounded miles, (5,000 miles or 750 miles) Impossible MPG (miles per gallon) or KML (kilometre by litre) Non continuous jurisdictions- meaning a licenses is in NH and travels to FL but missing reporting miles to states in between Total gallons do not equal the taxable paid fuel. Examples that stand out as concerns are: Summary totals that do not equal the individual line total. Returns that match exactly a previously filed return for MPG/KPL or Distance or Fuel Rounding in MPG/KPL or Distance or Fuel. Any reported number that is observed to out of line with the other numbers. Can you get there from here? Total and taxable fuel that do not match or tax paid that matches exactly the number that was used.

How licensees arrive to do that ?

Licensees, should maintain: Mileage/Distance Records Driver Truck Logs GPS Reports Origins and destinations Routes of travel Beginning and ending odometer readings Bills of lading Fuel Records Fuel invoices Fuel statements Fuel receipts Bulk Tank Reconciliation and Disbursement Log Between jurisdictions fuel source records seem to be consistently administered. Distance documentation is clearly not administered the same. Many jurisdictions will in fact waive one or more of the “requirements”.

What should we do with these strange returns ? Contact licensee and explain how to complete the quarterly tax return Enter the tax return as filed and see if the return goes into an exceptions mode Refer the licensee to the audit department

The following slides will give you some examples What do you think is so strange ?

What is wrong ? D and L don’t balance if you add column L; column K , nothing calculated for SK, even the KML is wrong, the calculation gives 1,69

A call was made to the licensee A call was made to the licensee. He agreed with the KL/M at 1,69; no fuel purchased in SK. the number goes in column K.

The next two slides are examples of returns received for two different quarters, with purchases equals to the Tax paid gallons, total due is 0,00$ or almost company referred for audit dept. Miles and gallons don’’ add up on 1st slide

Same company, next quarter

On the next slides, we have identical MPG each quarter.

In the following quarter, mpg still at 3,00 totals don’t match

corrected return for the Q1 corrected return for the Q1. Phone called made for corrections – higher MPG

This is the adjusted calculation for the 2Q mpg at 4.00 minimum

The totals were added, there was none on the original return The totals were added, there was none on the original return. What’s wrong ? Tax paid gallons are the taxable gallons – Decimals, Fuel in every jurisdiction, even very small amounts, the MPG is at 5.00 so the carrier is probably adjusting the fuel or the distances ….Should it be submitted to the Audit dept. espe cially if the MPG is the same every quarter.

all miles end with 0…. Are these actual distances travelled all miles end with 0…. Are these actual distances travelled ? the carrier purchased fuel in every jurisdiction …..

Carrier is asking for a credit in NV but no distance and no fuel bought… fuel bought with tax paid (box D) are not the same as the purchased by jurisdiction, but equal the taxable gals. which one is the right gallons purchased ? And then what is the right MPG ?

No fuel purchased

MPG at 5,00 exactly - Fuel was bought in every jurisdiction almost exactly the same amount of the taxable gallons ….

Taxable distances sometimes greater than total miles - never exactly the same (exempted distances?) Is tax paid gallons correct or are there 0’s because the total purchased was reached ? How did they get to Massachusetts - no connecting states

What should we do ? Give more information on how to complete an IFTA return Audit these carriers, especially if the problem occurs every quarter Educate staff and industry