Compliance, Transportation

All About IRP & IFTA

The International Registration Plan (IRP) and International Fuel Tax Agreement (IFTA) are cooperative programs to collect and distribute registration and fuel tax revenue between member states and Canadian provinces.

You are required to register for these programs if:

  • You are involved in INTERSTATE commerce AND
  • Your vehicle is 26,001 lbs. or greater, or
  • Your vehicles are in combination of 26,001 lbs. or greater, or
  • You operate 3 or more axles regardless of weight

You are required to chose a base state.  This base state will issue your IRP and IFTA credentials and collect all fees.  The base state will distribute your fees to the other states on your behalf.  If selected, your base state will also complete your audit.

IRP Specifics

Once registered for IRP, full reciprocity allows your license plate and cab card to be valid in all jurisdictions.  The mileage reporting period for IRP is July 1 – June 30.  All fees for this reporting year are split between jurisdictions based on your percentage of travel in each jurisdiction.  You are required to maintain trip reports in order to accurately report this information.

Trip

All records must be retained for 3 years plus the current year.

IFTA Specifics

Once registered for IFTA, full reciprocity allows your license and decals to be valid in all jurisdictions.  You must file IFTA taxes returns quarterly and they are due on the last day of the month following the end of the quarter.  Any amount owed (or refunded) will come from your base state.  You are required to maintain trip reports and fuel receipts in order to accurately report this information.  All records must be retained for 4 years plus the current year.  In the event of an audit, you must inventory and produce any unused decals for the previous 4 years.

In lieu of record keeping and IRP/IFTA registration you may purchase temporary trip and fuel permits any time you leave your base state.  These can be purchased directly from some states or by a 3rd party service.  These permits are only good for a certain number of trips/days – this varies by jurisdiction.

Your ELD data may be used to calculate your state mileage.

Keep Truckin ELD

Audits

IRP and IFTA agencies are mandated to audit 3% of all registrants annually.  There are certain flags that can trigger an IRP and IFTA audit.

  • Delinquent Returns
  • Amended Returns
  • Fluctuation in miles, fuel, and/or miles per gallon
  • High Refunds
  • Extremely low or extremely high mpg (The average is between 5-10 mpg)

 

For more information on IRP, IFTA, or ELDs contact us.  We provide training and/or will process the data, file your returns, and retain your documentation.  We can also assist in the event of an audit.

 

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