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IFTA 101. Compliance. Consensus Board Interpretations Dispute Resolution Program Compliance Reviews Enforcement IFTA, Inc. Clearinghouse. Consensus Board Interpretations.

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IFTA 101

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Ifta 101

IFTA 101

Managed by the International Fuel Tax Association, Inc.


Ifta 101

Compliance

Managed by the International Fuel Tax Association, Inc.


Ifta 101

  • Consensus Board Interpretations

  • Dispute Resolution

  • Program Compliance Reviews

  • Enforcement

  • IFTA, Inc. Clearinghouse

Managed by the International Fuel Tax Association, Inc.


Ifta 101

Consensus Board

Interpretations

A process through which provisions of the IFTA governing documents may be interpreted and commentary added to the affected provisions

Managed by the International Fuel Tax Association, Inc.


Ifta 101

  • A jurisdiction, committee or Board member requests an interpretation

  • The Board may issue a proposed interpretation

  • A proposed interpretation must be ratified by ¾ affirmative vote of the membership at an Annual Business Meeting

  • If ratified, commentary is added to the affected IFTA governing document

Managed by the International Fuel Tax Association, Inc.


Ifta 101

Dispute Resolution

The process by which the member jurisdictions and IFTA licensees have confidence that compliance issues regarding the IFTA governing documents are being addressed in a consistent and an efficient manner.

Managed by the International Fuel Tax Association, Inc.


Ifta 101

To provide a forum for jurisdictions to resolve compliance issues among themselves

To provide a forum for a carrier to resolve a compliance issue with a jurisdiction

A dispute by a carrier cannot be filed if an administrative remedy in the jurisdiction exists or if the dispute involves substantive jurisdiction law (including the imposition, assessment or collection of tax)

Dispute Resolution Purpose

Managed by the International Fuel Tax Association, Inc.


Ifta 101

Legend of Acronyms:

PCRT – Program Compliance Review Team

PCRC – Program Compliance Review Committee

PD – Program Director

PCA – Program Compliance Administrator

CHAIR – Program Compliance Review Committee Chair

VICE CHAIR – Program Compliance Review Committee Vice Chair

NPM – PCRC Members Not Serving on the Review Panel

Program Compliance

Program Compliance Review - Flowchart of Procedures

Managed by the International Fuel Tax Association, Inc.


Ifta 101

The Process

BOX 1

PCRT VISITS JURISDICTION AND COMPLETES

COMPLIANCE REVIEW

PD REVIEWS FINDINGS WITH JURISDICTION

PCA RECEIVES COMMENTS FROM JURISDICTION

PCA PREPARES DRAFT REPORT

DRAFT REPORT SENT TO PD

IN

COMPLIANCE

END

PROCESS

YES

B

NO

DRAFT REPORT SENT

TO PCRC

AREAS

FOR

FOLLOW-UP

BOX 3

PD ACTS

YES

NO

END

PROCESS

  • BOX 2

  • PCRC PANEL OF 3 REVIEWS DRAFT REPORT:

  • NOTES AREAS OF COMPLIANCE

  • DETERMINES AREAS FOR FOLLOW-UP

  • DETERMINES AREAS FOR REASSESSMENT

A

Managed by the International Fuel Tax Association, Inc.


Ifta 101

The Process Continues

A

BOX 5

NPM AND PD DEVELOPS

REASSESSMENT PLAN AND

TIMELINE

BOX 8

REASSESSMENT REPORT

REVIEWED BY FULL PCRC

BOX 4

REASSESSMENT AREAS

REVIEWED BY CHAIR

AND VICE CHAIR

IN

COMPLIANCE

YES

BOX 6

PD PRESENTS PLAN AND

TIMELINE TO JURISDICTION

PD WITH CHAIR’S OK

CAN MODIFY PLAN OR

TAKE STEPS TO REASSESS

PD

ISSUES

FINAL

REPORT

REASSESSMENT

TO CONTINUE?

NO

YES

BOX 9

RETURN

TO PD

FOR

COMMUNI-

CATION

WITH

JURISDICTION

YES

CHANGE

REASSESSMENT

PLAN AND/OR

TIMELINE

BOX 7

PD PREPARES

REASSESSMENT REPORT

B

NO

NO

C

Managed by the International Fuel Tax Association, Inc.


Ifta 101

The Process

Concludes

C

BOX 10

FIND JURISDICTION

OUT OF COMPLIANCE

IF COMMITTEE FINDS

JURISDICTION OUT OF

COMPLIANCE; THEN

REASSESSMENT REPORT

W/ OUT OF COMPLIANCE

ISSUES IS SENT TO PROPOSED

DISPUTE RESOLUTION

COMMITTEE

JURISDICION CAN APPEAL

TO BOARD OF DIRECTORS

Managed by the International Fuel Tax Association, Inc.


Ifta 101

Jurisdictions exchange quarterly a listing of new and cancelled accounts

Jurisdictions exchange, at least every 10 days, the following:

Listing of suspended licenses

Listing of revoked licenses

Listing of reinstated licenses

Enforcement of IFTA

Managed by the International Fuel Tax Association, Inc.


Ifta 101

Administrative

To ensure that a carrier in a revoked license in one jurisdiction does not receive a license from another

Roadside

To ensure that a carrier in a revoked, suspended, or cancelled status is not continuing operations

Uses of Information

Managed by the International Fuel Tax Association, Inc.


Ifta 101

Credentials

A jurisdiction issues one license to the carrier

The carrier must copy the license and place a copy in each qualified motor vehicle

A Jurisdiction issues two decals to the carrier for each qualified motor vehicle

The carrier must display a decal on each side (driver and passenger) of each qualified motor vehicle

Roadside Enforcement

Managed by the International Fuel Tax Association, Inc.


Ifta 101

IFTA Temporary Decal Permit

This permit may be carried ONLY in place of the decals

Valid for only 30 days

Vehicle specific (VIN must be included)

It’s main purpose is to allow a carrier to add a qualified motor vehicle immediately – places a copy of the license in the vehicle and the jurisdiction faxes the temporary permit until permanent decals reach the carrier

Other Credentials

Managed by the International Fuel Tax Association, Inc.


Ifta 101

  • Trip Permit

    • A jurisdiction may issue a trip permit to a carrier

    • This trip permit is in lieu of an IFTA license

    • Most jurisdiction trip permits are limited by time (i.e. days, hours, etc.)

    • This is NOT an IFTA trip permit – it allows the carrier to travel through the jurisdiction that issued it and no other

    • A trip permit has to be obtained for each jurisdiction separately

Managed by the International Fuel Tax Association, Inc.


Ifta 101

If a carrier is operating on a suspended or revoked license, this indicates that the carrier is not complying with the terms of IFTA

Including failure to file tax returns, failure to pay a tax return, failure to pay an audit assessment

If a carrier is operating on a cancelled license, the carrier has indicated to the jurisdiction that he or she is no longer operating

Stopping the carrier from operating in your jurisdiction stops the carrier from operating in all jurisdictions – payment by this carrier pays your taxes too

Why Enforce?

Managed by the International Fuel Tax Association, Inc.


Ifta 101

50 Member Jurisdictions

Paperless Transmittals

Paperless Interjurisdictional Audit Reports

Paperless Taxpayer Status Updates

Law Enforcement Tool

CVISN (level 1) Requirement

IFTA Clearinghouse

Managed by the International Fuel Tax Association, Inc.


Ifta 101

The Clearinghouse Advisory Committee was formed in early 2004.

First task tackled by the Committee was to recommend standard procedures for paperless transmittals.

As of May 2004, requirements were given to Jurisdictions to go paperless.

Audit Reports may be posted to the Clearinghouse, to eventually eliminate the need to send paper Audit Reports.

Clearinghouse Advisory Committee (CAC)

Managed by the International Fuel Tax Association, Inc.


Ifta 101

One beneficial aspect of the Clearinghouse is Paperless Transmittals.

Once a Jurisdiction meets the requirements laid out by the Committee it will be able to halt sending paper transmittal reports to those Jurisdictions currently in the Clearinghouse.

Paperless Transmittals

Managed by the International Fuel Tax Association, Inc.


Ifta 101

Funds Netting

Managed by the International Fuel Tax Association, Inc.


Ifta 101

The IFTA Clearinghouse provides for the electronic exchange of fuel information and reconciliation of tax among the member jurisdictions.

  • Transfers funds electronically between member jurisdictions. In 2010 over $328 million was transferred through the Funds Netting accounts.

  • Ensures timely and accurate exchange of tax information.

  • Reduces errors.

  • Provides a safe environment, with appropriate back up and data recovery.

Managed by the International Fuel Tax Association, Inc.


Ifta 101

Benefits of Funds Netting

  • Only one EFT or check payment to be made verses up to 57

  • Billings are paid timely

  • No more lost payments or payments duplicated

Managed by the International Fuel Tax Association, Inc.


Ifta 101

How Funds Netting Works

  • The IFTA, Inc. Clearinghouse uses JP Morgan Chase as the mechanism for payments to and from other Jurisdictions based on Transmittal Information. The totals derived for funds netting are collected exclusively from the Summary Totals file uploaded to the Clearinghouse.

  • The total that a jurisdiction will owe or receive will be based on a netting process for all participating jurisdictions. The final net amount will be one final total you will be owed or have to fund to your EFT banking accounts.

  • Participating jurisdictions will have to follow their normal procedures for paying non-participating jurisdictions.

  • All participating members of the IFTA, Inc. Clearinghouse will be required to participate in Funds Netting.

Managed by the International Fuel Tax Association, Inc.


Ifta 101

  • The IFTA Funds Netting Processing will take place 12 times a year, once per month. The IFTA, Inc. Clearinghouse numbers the processing 1 through 12 for the given year.

  • IFTA Funds Netting Processing:

    • Upload your data

    • View, correct and Re-load data as needed

    • Funds netted

    • EFT accounts funded by the Jurisdictions who owe

    • Jurisdictions receive funds through EFT accordingly

Managed by the International Fuel Tax Association, Inc.


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