The International Fuel Tax Agreement (IFTA) and International Registration Plan (IRP) require motor carriers to maintain detailed distance and fuel records for each individual vehicle. The records must be summarized monthly, quarterly, and annually by fleet and by jurisdiction.
The monthly distance and fuel summary for each vehicle must include all of the following, with detailed supporting documents:
|Type of record||Time kept|
|IFTA (fuel tax)||4 years from the date the fuel tax return was due or filed, whichever is later|
|IRP (prorate)||3 years after the close of that application registration year|
If you maintain a bulk fuel storage facility and keep the required records, you may get credit for tax paid on fuel withdrawn from that bulk storage facility and used in your:
To get this fuel tax credit, you must maintain the following records:
The majority of businesses and individuals we audit are chosen at random. The rest are selected based on the nature of their tax liability or business operations.
To complete your audit as quickly and easily as possible, you should:
An audit will cover one or more of the following areas:
|Type of Audit||Audit Period|
|Fuel Tax||Up to 5 previous years|
|IRP (prorate)||Up to 3 previous licensing periods|
The auditor will contact you to schedule a convenient time and place to meet, and describe the records you'll need. An audit appointment can take place at:
We'll review the completeness and accuracy of following types of records:
If the audit finds that records are missing or inadequate, we may adjust your tax paid credits, fuel consumption, jurisdictional distance, and monies owed. You may also receive helpful instructions and information to help you fill out your returns in the future.
The time the audit will take depends on the type of audit being done and the condition of your records.
|If you…||Your file will be…||You'll receive…|
|Overpaid your taxes||Referred to our headquarters in Olympia for authorization of your refund.||A refund 2-3 weeks after the 30-day appeal period has ended.|
|Underpaid your taxes||Finalized by the auditor||Notice of the amount you owe and instructions on how to pay it.|
You may appeal the audit results within 30 days from the date you receive the audit report by writing to:
Department of Licensing
PO Box 9228
Olympia WA 98507-9228
If you file an appeal before the payment due date, you won't have to make payment until after your protest is resolved. However, you may want to pay any portion of the audit that you aren't appealing to avoid additional interest charges. Interest continues to accrue on any amount ultimately found to be due.
All information you provide will be maintained in strict confidence. You should be aware, however, that we have information-sharing agreements with the Internal Revenue Service and other agencies and jurisdictions.
We recognize state and international rules governing prorate and fuel taxes are very complex, and are happy to help you establish and maintain effective reporting and record keeping. Contact a prorate and fuel tax office for more information.