TOP TEN NONCOMPLIANCE
ISSUES 2005 - 2010
PRESENTED BY
APC COMMITTEE
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#10 A670 17 Violations
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*A670 AUDIT DOCUMENTATION
The audit documentation shall accomplish the
following:
.100 Communicate the results of the audit, showing
adjusted distance, fuel and the monetary results;
.200 Document and justify procedures conducted by
the auditor;
.300 Indicate source of audit results. For example,
audited fuel determined from retail purchase receipts;
.400 Communicate suggestions and recommendations
made to the licensee; and
.500 Clearly support audit findings.
#9 = A680 18 VIOLATIONS
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A680 AUDIT FILE CONTENTS The audit file will
contain, but not be limited to, the following:
.100 Schedules
.005 Summary schedules
.010 Supplementary schedules
.200 Support Documentation
.005 Detail Information
.010 Listing of Records Maintained
.015 A synopsis of opening and closing conference
notes with licensee indicating date and persons
attending.
#8= P320 20 Violations
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P320 DECALS
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.100 Contents: must be so high and wide
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.200 Materials: must be right color and right material
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.300 Administrative Fees: you may charge fees
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# 7= A690 21 VIOLATIONS
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A690 COMMUNICATION OF AUDIT
FINDINGS
Pages of pages of information too big
to place here
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# 6 = P720 22 VIOLATIONS
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*P720 REQUIRED INFORMATION
Each jurisdiction shall use a standard tax return that shall contain, but not be
limited to, the elements listed below:
.050 Name and mailing address of the jurisdiction issuing the tax return;
.100 A space for the IFTA license number of the licensee;
.150 A space for the name and address of the licensee;
.200 A space for the tax reporting period of the tax return;
.250 A space for the total distance traveled in all jurisdictions during the tax
reporting
period, including operations with trip permit;
.300 A space for total fuel consumed in all jurisdictions during the tax
reporting period;
.350 A space for the average fuel consumption factor (to two decimal places)
for the tax
reporting period;
.400 A space for the fuel type(s) consumed during the tax reporting period;
# 6 = P720 22 VIOLATIONS
CONTINUED
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.450 Columns for the jurisdictions in the Agreement;
.500 Columns for reporting for each jurisdiction in
order (with rounding provided to the nearest whole
unit);
.010 Tax rate;
.015 Total miles or kilometers;
.020 Total taxable miles or kilometers;
.025 Taxable gallons or liters;
.030 Tax paid gallons or liters;
.035 Net taxable gallons or liters;
.040 Tax due;
.045 Interest due; and
.050 Total due;
# 6 = P720 22 VIOLATIONS
CONTINUED
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.550 Totals for the columns that are listed under P720.500 with the
exception of P720.500.010 and P720.500.045;
.600 A space for penalty or late filings fees ($50.00 or 10 percent of
the tax, whichever is greater);
.650 A space for the total remittance of the tax return;
.700 A space for the date of the submitted tax return;
.750 A space for the signature of the person filing the licensee’s tax
return, unless the licensee is filing electronically in accordance with
R940.300 and P160.
.800 A space for the title of the person filing the licensee's tax
return; and
.850 A space for the telephone number of the person filing the
licensee's tax return.
A space for previous balances may be included.
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# 5 = A320 24 VIOLATIONS
*A320 SELECTION OF AUDITS
 The following guidelines shall be
used in selecting audits to fulfill
the IFTA auditing requirements:
 .100 Low-Distance/High-Distance
Accounts Requirement
 .200 Low-Distance/High-Distance
Computations
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# 4 = A310 28 VIOLATIONS
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A310 NUMBER OF AUDITS
Base jurisdictions will be held accountable for audits and will
be required to complete audits of an average of 3 percent
per year of the number of IFTA accounts required to be
reported by that jurisdiction on the annual reports filed
pursuant to the IFTA Procedures Manual, Section
P1110.300.005 excluding new licensees, for each year of
the program compliance review period, other than the
jurisdiction’s IFTA implementation year. Such audits shall
cover at least one registration year. This does not preclude
audits of individual licensees several times during the
program compliance review period. However, audits for a
licensee selected that cover multiple registration years, fuel
types, or both shall be counted as one audit for program
compliance review purposes.
# 3 = 50 VIOLATIONS
R1230
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*R1230
INTEREST
The base jurisdiction, for itself and on behalf of the other jurisdictions,
shall assess interest on all delinquent taxes due each jurisdiction except
taxes collected directly by other jurisdictions in accordance with IFTA
Procedures Manual Sections P1000 and P1120.300.
.100 U.S. Jurisdiction Interest Rate
For a fleet based in a U.S. jurisdiction, interest shall accrue at a rate of
one percent per month.
.200 Canadian Jurisdiction Interest Rate
For a fleet based in a Canadian jurisdiction, interest shall accrue at a
rate equal to the Canadian Federal Treasury Bill rate plus two percent
and adjusted every calendar quarter.
.300 Computation of Interest
.005 Tax Returns Interest due from a tax return shall be calculated
separately for each jurisdiction from the date tax was due for each
month or fraction thereof until paid. A full month’s interest shall accrue
for any portion of a month on which tax owed remains unpaid.
# 3 = 50 VIOLATIONS R1230
CONTINUED
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.010 Audits
Audit interest shall be calculated separately for each jurisdiction. Audit
interest shall accrue monthly on the cumulative net tax balance owed to a
jurisdiction until paid. A cumulative net tax balance is the amount of
additional tax owed or tax overpayment made to a jurisdiction immediately
following the due date of any tax reporting period taking into account all prior
additional tax owed or overpayments made to a jurisdiction during the audit
period. The cumulative net tax balance shall be adjusted immediately
following the due date of any subsequent tax reporting period to reflect tax
owed or overpayment made for that tax reporting period. A full month’s
interest shall accrue for any portion of a month on which tax owed remains
unpaid. An overpayment for one jurisdiction shall have no effect on the
interest calculation for any other jurisdiction.
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.400 Remittance
All interest collected shall be remitted to the appropriate jurisdictions in
accordance with IFTA Procedures Manual Section P1000.
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# 2 64 VIOLATIONS R940
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*R940 TAX RETURN FORMAT
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.100 Forms
Tax return forms shall be furnished at no charge to
each licensee at least 30 days prior to the due date of
the tax return. All tax rates shown on the tax return will
be the current jurisdiction tax rate provided notification
of a change in tax rates is disseminated by a
jurisdiction within the time limits prescribed by P1120.
Failure to receive the authorized form does not relieve
the licensee from the obligation to submit a tax return.
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# 2 = 64 VIOLATIONS R940
continued
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.200 Non Standard Returns
A base jurisdiction may authorize a licensee to submit
a written or computer generated tax return in lieu of the
standard tax return if the return includes all the
information required by this Agreement and is in a form
acceptable to the base jurisdiction.
.300 Electronic Return
A base jurisdiction may authorize a licensee to submit
a tax return electronically, in lieu of the standard tax
return, if the return includes all the information required
by this Agreement and is in a form acceptable to the
base jurisdiction.
# 1 87 VIOLATIONS P1040
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*P1040 MONTHLY TRANSMITTALS
Outgoing Transmittals
Each member jurisdiction shall forward transmittal data
listings related to tax returns received during each month.
Transmittal data listings and related funds must be
forwarded monthly in accordance with the transmittal and
funding calendar prepared by the Clearinghouse Advisory
Committee and approved by the IFTA, Inc. Board of
Trustees. The funds and the supporting transmittal data
listings may be sent separately. A report of no activity is
required for each member jurisdiction if no revenue was
collected on its behalf.
# 1= 87 VIOLATIONS P1040
continued
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Incoming Billing Transmittals
In the event a transmittal data listing to another jurisdiction
results in money being owed the base jurisdiction, the
jurisdiction being billed shall remit payment to the base
jurisdiction in accordance with the transmittal and funding
calendar prepared by the Clearinghouse Advisory Committee
and approved by the IFTA, Inc. Board of Trustees. The
transmittal data listing shall contain, but not be limited to, the
following information:
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.050 The base jurisdiction's name;
.100 The reporting period that the transmittal data listing is for;
.150 The account number of each licensee being reported;
.200 The total miles or kilometers reported for each licensee for
that jurisdiction;
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# 1 = 87 VIOLATIONS P1040
continued
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.250 The total taxable miles or kilometers reported for each licensee for
that jurisdiction;
.300 The reported fleet fuel consumption factor for each licensee;
.350 The reported taxable gallons or liters for each licensee for that
jurisdiction;
.400 The reported tax paid gallons or liters for each licensee for that
jurisdiction;
.450 The net taxable gallons or liters for each licensee for that
jurisdiction;
.500 The tax due for each licensee for that jurisdiction;
.550 The interest due for each licensee for that jurisdiction;
.600 The total due for each licensee for that jurisdiction;
.650 The amount deficient from partial payment for each licensee for
that jurisdiction; and
.700 The summary totals of items Listed in IFTA Procedures Manual
Sections P1040.200,P1040.250, and P1040.350 through P1040.650.
SO WHAT DOES THIS
MEAN?
As you can see we keep making the
same errors over and over again.
So we either change our ways or we
change the rules.
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IN CLOSING…..
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