IFTA 101

INTERNATIONAL FUEL TAX AGREEMENT

Managed by the International Fuel Tax Association, Inc.


Consensus Board Interpretations

Dispute Resolution

Program Compliance Reviews

Enforcement

IFTA, Inc. ClearinghouseManaged by the International Fuel Tax Association, Inc.


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



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



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.



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)



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 Review - Flowchart of Procedures



BOX 1

PCRT VISITS JURISDICTION AND COMPLETES COMPLIANCE REVIEW

PD REVIEWS FINDINGS WITH JURISDICTIONPCA RECEIVES COMMENTS FROM JURISDICTION

PCA PREPARES DRAFT REPORTDRAFT REPORT SENT TO PD

DRAFT REPORT SENTTO PCRC

BOX 2

PCRC PANEL OF 3 REVIEWS DRAFT REPORT:1) NOTES AREAS OF COMPLIANCE

2) DETERMINES AREAS FOR FOLLOW-UP3) DETERMINES AREAS FOR REASSESSMENT

IN COMPLIANCE

ENDPROCESS

YES

NO

AREASFOR

FOLLOW-UP

YES

NO

BOX 3

PD ACTS

ENDPROCESSA

B



BOX 4

REASSESSMENT AREASREVIEWED BY CHAIR

AND VICE CHAIR

A

REASSESSMENTTO CONTINUE?

B

YES

NO

BOX 5

NPM AND PD DEVELOPSREASSESSMENT PLAN AND

TIMELINE

BOX 6

PD PRESENTS PLAN ANDTIMELINE TO JURISDICTION

PD WITH CHAIR’S OKCAN MODIFY PLAN OR

TAKE STEPS TO REASSESS

BOX 7

PD PREPARES REASSESSMENT REPORT

BOX 8

REASSESSMENT REPORTREVIEWED BY FULL PCRC

INCOMPLIANCE

PDISSUESFINALREPORT

CHANGEREASSESSMENT

PLAN AND/OR TIMELINE

YES

NO

BOX 9

RETURN TO PDFOR

COMMUNI-CATIONWITH

JURISDICTION

CNO

YES



C

BOX 10

FIND JURISDICTIONOUT OF COMPLIANCE

IF COMMITTEE FINDS JURISDICTION OUT OF

COMPLIANCE; THEN REASSESSMENT REPORTW/ OUT OF COMPLIANCE

ISSUES IS SENT TO PROPOSEDDISPUTE RESOLUTION

COMMITTEE

JURISDICION CAN APPEAL TO BOARD OF DIRECTORS



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



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



CredentialsA 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



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



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



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



50 Member JurisdictionsPaperless TransmittalsPaperless Interjurisdictional Audit

ReportsPaperless Taxpayer Status UpdatesLaw Enforcement ToolCVISN (level 1) Requirement



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.



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.



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.



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

Billings are paid timely

No more lost payments or payments duplicated



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.



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


IFTA 101

Documents

Transcript of IFTA 101