Welcome to: Breakout Session #3

Hodgepodge With Dawn Lietz – NV Richard Wagner – KY Audrey Martel - NH

Topics Trip Permits Registered Weights Unreported Operations RAD Trucking

Trip Permits  How do you verify? What is on Permit?  Verification of Fuel Tax Paid  Verification of Registration Fees Paid  What to include with audit?  No permits found  Examples

What should I know?  State fee(s) for trip permits vary from jurisdiction to jurisdiction  If you are not an IFTA licensee, the operation of a qualified motor vehicle in a jurisdiction may be authorized if the jurisdiction has issued you a trip permit.  There is no IFTA trip permit authorizing operation of a qualified motor vehicle in all IFTA jurisdictions.  The applicant must apply to each jurisdiction they chose to travel in.

How to report when operating on a Trip Permit  R224 In-Jurisdiction Distance In-Jurisdiction means the total number of miles or kilometers operated by a licensee’s qualified motor vehicle with a jurisdiction including miles/kilometers operated under an IFTA temporary permit. In-Jurisdiction Distance DOES NOT INCLUDE MILES OPERATED ON FUEL TAX TRIP PERMIT or exempted from fuel taxation by a jurisdiction.

IRP Trip Permit  If you do not have apportioned plates, but need to cross into a jurisdiction with either a multi-axle vehicle or a vehicle (or combination) over 26,000 pounds, you MUST obtain a TRIP PERMIT for any jurisdiction you travel in.

What is an IFTA Fuel Permit?  In accordance with R310 –In lieu of Motor Fuel Tax licensing under this Agreement, persons may elect to satisfy Motor Fuels Use Tax Obligations on a Trip by Trip Basis.

Key points  TRIP PERMITS NEED TO BE OBTAINED PRIOR TO ENTERING A JURISDICTION.  TRIP PERMITS GENERALLY ARE OBTAINED FROM A PERMIT SERVICE  THE COST AND DURATION OF THE TRIP PERMITS VARY FROM JURISDICTION TO JURISDICTION

Registered Weights ► Are hauling weights reviewed if a motor vehicle is registered for less than the maximum weight class? ► What should be done if bills of lading show that a motor vehicle is consistently hauling above their IRP registered weight?

Registered Weights ► IRS tax form 2290 – Weight Distance Tax ► Taxes start above 55,000 lbs ► In KY, during audits the past four years, we have had over 100 motor vehicles re- registered to weight classes above 55,000 lbs. All of these were found while auditing source documents that showed the trucks were consistently hauling above their registered weight.

Registered Weights ► Biggest offenders? ► Concrete Mixers ► Sanitation Trucks ► Estimated $100,000 in additional revenue yearly.

Unreported Operation Information was requested from sister Jurisdictions based on the simple question:Information was requested from sister Jurisdictions based on the simple question: How many unreported operations did you find through audit during a specific time period and how many quarters were audited?How many unreported operations did you find through audit during a specific time period and how many quarters were audited? Replies were received from three JurisdictionsReplies were received from three Jurisdictions

Unreported Operations During the course of XXX carriers audited by these Jurisdictions, the total number of miles that were found unreported was:During the course of XXX carriers audited by these Jurisdictions, the total number of miles that were found unreported was: Xx,xxx,xxxXx,xxx,xxx Xxx carriers, xxx quarters, xx,xxx,xxx miles of unreported operations.Xxx carriers, xxx quarters, xx,xxx,xxx miles of unreported operations.

RAD Trucking RAD Trucking is a Motor Carrier operating one unit with very consistent operation. RAD Trucking is a Motor Carrier operating one unit with very consistent operation. You will be given information in your groups to find solutions to problems found during your audit of this carrier. You will be given information in your groups to find solutions to problems found during your audit of this carrier.

RAD Trucking This carrier reports one trip each week from Reno, NV to Minneapolis, MN using PCMiler. This carrier reports one trip each week from Reno, NV to Minneapolis, MN using PCMiler. Fuel card printouts show fuel is purchased in Sparks, NV and North Platte, NE (along PCMiler route). Fuel card printouts show fuel is purchased in Sparks, NV and North Platte, NE (along PCMiler route). This one quarter was the only operations during the IRP Registration year and the IFTA return matches the IRP return. This one quarter was the only operations during the IRP Registration year and the IFTA return matches the IRP return.

RAD Trucking Total Miles:47,598Total Gallons:7,845MPG:6.07 TotalTaxable Tax PaidNet TaxableTax (Credit)InterestTotal JurisdictionMiles MPGGallons Tax RateDue Iowa IA7, , Minnesota MN2, Nebraska NE11, ,9523,528-1, Nevada NV10, ,7054,314-2, Utah UT5, Wyoming WY10, , Totals47,598 7,

RAD Trucking – Scenario A During the audit you find 49,978 odometer miles or 2,380 unreported miles (5%). During the audit you find 49,978 odometer miles or 2,380 unreported miles (5%). What additional information would you request? What additional information would you request? What changes would you make to total and taxable miles? What changes would you make to total and taxable miles? Are there any differences to your IRP audit? Are there any differences to your IRP audit?

RAD Trucking – Scenario B In your audit information, you find some cash fuel receipts in Valentine, NE. In your audit information, you find some cash fuel receipts in Valentine, NE. The driver tells you that his significant other lives there and will occasionally go off-route to see that person. The driver tells you that his significant other lives there and will occasionally go off-route to see that person. The documents showed three receipts for 250 gallons and the driver could not tell you exactly how many times he would have stopped in Valentine that quarter. The documents showed three receipts for 250 gallons and the driver could not tell you exactly how many times he would have stopped in Valentine that quarter.

RAD Trucking – Scenario B How would you use this information to calculate your audited results on both the IFTA and IRP audit? How would you use this information to calculate your audited results on both the IFTA and IRP audit?

RAD Trucking – Scenario C It was a bad winter. A blizzard closed the highways across Nebraska. The poor driver had to go out of his way to get home. The driver went thru Kansas City, KS and across Kansas and part of Colorado. It was a bad winter. A blizzard closed the highways across Nebraska. The poor driver had to go out of his way to get home. The driver went thru Kansas City, KS and across Kansas and part of Colorado. You learn he did not obtain any permits for MO, KS, and CO. You learn he did not obtain any permits for MO, KS, and CO.

RAD Trucking – Scenario C How would you handle the IFTA and IRP audit? How would you handle the IFTA and IRP audit? Would there be any additional steps taken in your IRP audit because of the travel in Jurisdictions that the truck was not apportioned for? Would there be any additional steps taken in your IRP audit because of the travel in Jurisdictions that the truck was not apportioned for?

RAD Trucking – Scenario D During the audit you find 49,978 odometer miles or 2,380 unreported miles (5%). During the audit you find 49,978 odometer miles or 2,380 unreported miles (5%). In your audit information, you find some cash fuel receipts in Valentine, NE. In your audit information, you find some cash fuel receipts in Valentine, NE. The driver tells you that his significant other lives there and will occasionally go off-route to see that person. The driver tells you that his significant other lives there and will occasionally go off-route to see that person. The documents showed three receipts for 250 gallons and the driver could not tell you exactly how many times he would have stopped in Valentine that quarter. The documents showed three receipts for 250 gallons and the driver could not tell you exactly how many times he would have stopped in Valentine that quarter.

RAD Trucking – Scenario D What additional information would you request for this audit? What additional information would you request for this audit? How would you handle any changes in the IRP and IFTA audit? How would you handle any changes in the IRP and IFTA audit?

Hodgepodge Conclusion: Trip Permits Registered Weights Unreported Operations

Hodgepodge