Can someone provide a reference to a practical guide for representing OTR truck drivers in fuel audits either for IFTA or with individual states?
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IFTA Tax Returns
mastertaxguy, I would look for a website link in your state's Department of Transportation. This is a tax return for over-the-road trucks.
Usually filed quarterly, it is an attempt to allocate a truck's fuel tax liability based upon mileage driven in the various respective states driven. The total mileage for the period is divided by the total fuel consumed to yield "mileage per gallon." Using this, the logic next determines how many gallons were consumed in the various states for that truck, and it is necessary to first know how many miles were driven in that state for the quarter.
Gallons actually purchased in that state is taken from fuel purchase details. Gallons consumed (per state) are then measured against gallons purchased, and the difference multiplied by the fuel tax in that state. All this does make sense when you look at the tax forms.
The objective is to levelize the states instead of filing a return for every state. The states have adopted the IFTA convention to avoid this.
Mort drives a rig from Atlanta to Charlotte and back every day. South Carolina is notorious for having the lowest fuel tax and lowest pump prices anywhere, so Mort stops in Spartanburg, SC to fillup every day. But there is mileage mostly in Georgia and a little in NC on this route, and at the end of the reporting period, Mort's truck owner has to cough up some fuel tax on the IFTA to Georgia and NCarolina, with a credit to S Carolina.
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