Town Hall Meeting July 15, 2009 Manchester, NH

Issues submitted to IFTA, Inc. –One USDOT Number – multiple IFTA licensees –3% Audit Requirement –New VT Surcharge –Re-Examination and Re-Audit/Reasonable Cause –How to get rid of the gas tax –CDs for ABM

Multiple accounts tied to one USDOT number –Two accounts active; one inactive –In this example, a carrier allowed two owner/operators to use its USDOT number to apply for an IFTA license. One of those owner/operators did not file tax returns and the license was revoked. –The carrier received IFTA citations because of the owner/operator with a revoked license.

IFTA Audit Committee's survey on the 3% audit coverage requirement. –Although 35 jurisdictions responded to the survey that the 3% requirement is appropriate (compared to 14 who responded that the requirement is too high, 1 who responded that the requirement is too low), support for change to the 3% requirement is exactly even, 25 for and 25 against. –Also, 32 jurisdictions responded they encountered difficulty in meeting the 3% requirement and provided various reasons.

–Since there still seems to be some concerns regarding the 3% requirement, is there plan to review the 3% requirement?

–How is the 3% requirement actually arrived at so that one can say whether it is appropriate or not?

–Has the 3% requirement been compared to other yardsticks to see whether it is too high or too low? I have taken a look at some other revenue departments' website and found that risk assessment contributes a lot to the appropriate level of audit coverage, so that a fixed audit coverage may not work all the time.

–Should risk and potential revenue loss be considered instead of a blanket 3% requirement? I also found in one website that considering the risk, targeted audit coverage on a specific sector is just around 1.2%, so that the department can focus their attention and resources to other higher risk sectors.

–Should some flexibility be provided on the 3% requirement, or are there alternatives to just auditing 3% (such as demonstration of internal control) that we can consider so that we can make best use of our audit resources?

New Vermont Surcharge

Re-Examination and Re-Audit Provisions –Reasonable Cause

How to get rid of the gas tax?