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IFTA Non-Receipted Fuel Adjustments

IFTA Non-Receipted Fuel Adjustments. Presentation for IFTA ABM August, 2013 Reno, NV. Panel. Cindy Arnold(NV) – APC Joy Prender(MO) - PCRC. Please people…. Let us pay you what we owe you!. Issue. Some jurisdictions will not accept adjustment and/or non-tax paid fuel

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IFTA Non-Receipted Fuel Adjustments

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  1. IFTA Non-Receipted FuelAdjustments Presentation for IFTA ABM August, 2013 Reno, NV

  2. Panel • Cindy Arnold(NV) – APC • Joy Prender(MO) - PCRC

  3. Please people… • Let us pay you what we owe you!

  4. Issue • Some jurisdictions will not accept adjustment and/or non-tax paid fuel • Missing receipts, Indian Reservation purchases, unacceptable receipts • Misconception that total fuel and total tax paid fuel has to balance. • Has become more of an issue with electronic returns. • Have to have allow for adjustment fuel or correct amount of tax cannot be paid.

  5. History… • Has been a common misunderstanding for a number of years • Becoming more prevalent with the use of e-file for quarterly reporting • Can’t change with the stroke of a pen • Happens quarter, after quarter, after quarter • Need to be able to accept the data as filed without continuous follow-up

  6. What is the concern? • Who requires that tax paid gallons/liters equals total gallons/liters? • Do you know if you even have this issue?

  7. Research • Our research discovered that there are at least eight (8) jurisdictions where tax returns are not accepted as filed if total fuel does not match tax paid fuel. • Includes both paper and e-returns.

  8. The Result of non-acceptance • It creates an increased amount of work • File the return with the non-IFTA fuel and a check. • Wait to see if it is accepted. • Check and return in most cases sent back to carrier (service bureau). • Carrier doesn’t want to cash the refund check issued because they know they’ll have to pay on audit. Plus penalty, plus interest.

  9. What is the cost?

  10. What is the cost?

  11. What is the cost?

  12. In Summary Effect on individual jurisdictions vary:     1) If the jurisdiction is owed tax, they always lose tax that is due     2) If a jurisdiction is owed a credit, they are always credited too much tax.

  13. In Summary (2) • Jurisdictions aren’t getting their share of tax • Auditors have to deal with it • Industry wants to pay, but can’t • Pay more through penalty and interest

  14. How jurisdictions handle this • Most jurisdictions allow for this and here is how…

  15. Start of discussions • IAC meeting in Indianapolis discussed ballot #01_2013 as possible way to address this • Seems to be a problem with e-file • Problem may get worse as more jurisdictions e-file • Start discussion to see how to approach • Approached the Ballot sponsors

  16. Continued Discussion • Had a number of meetings with APC, PCRC to discuss possible solutions. • Formed a sub-committee • Verified that there seems to be a problem and would like to address it. • Kicked around a bunch of ideas. • Came up with some potential strategies.

  17. Potential Strategies • Amend Ballot #01_2013 • FTPBP 1-2013 - P700 APC-PCRC-1.pdf • Amend to include P710 • .600 Total number of Non-IFTA or non-tax paid gallons or litres • New Ballot - P710 • Gives jurisdictions flexibility of where to put the additional fuel • Allows for flexibility in programming • Training & information sessions • IFTA/IRP Managers; IFTA/IRP Audit Workshop?

  18. Point us in a Direction • How would you see this process being improved? • Questions/comments?

  19. IFTA Non-Receipted FuelAdjustments Presentation for IFTA ABM August, 2013 Reno, NV

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