Are You on the Radar?

Under IFTA rules, member jurisdictions are required to audit 3% of their carrier base every year. While some are random, many are triggered by specific anomalies in your returns. Here is what auditors look for.

1. The MPG Gap

Consistency is key. If your fleet averages 6.5 MPG for three quarters and suddenly reports 12 MPG (or 4 MPG) for one quarter, you will get flagged. Extreme variances suggest either missing fuel receipts or missing mileage logs.

2. "Gap Miles"

Auditors look for continuity. If you drop a load in Dallas, TX, and your next trip starts in Oklahoma City, OK, how did the truck get there? These "gap miles" must be accounted for. If they aren't, auditors assume you are hiding mileage to lower your tax bill.

3. Odometer vs. GPS Discrepancies

Modern ELDs track GPS distance, but IFTA relies heavily on odometer readings. If your GPS says you drove 500 miles but your odometer calculations show 450, you have a problem. Always document odometer malfunctions immediately.

4. The 4.0 MPG Penalty

This is the nightmare scenario. If an auditor determines your records are "inadequate" (e.g., missing logs, illegible receipts), they have the authority to reduce your fleet's MPG to 4.0 for the audit period. This effectively doubles or triples your tax liability instantly.

5. Personal Conveyance Abuse

Using Personal Conveyance (PC) to move the truck while off-duty is legal, but it must be logged correctly. If you use PC to advance a load or move towards a pickup, auditors will reclassify those miles as taxable commercial miles.

Audit-Proof Your Fleet: FastIFTA's Mileage & Trip Logging creates an unbroken chain of custody for every mile. By digitizing your logs, you create a defensible record that stands up to scrutiny.