Hello commercial truck drivers, greetings from TaxIFTA.com. With the aspect of providing you information and knowledge about IFTA, today, we have decided to throw some light on IFTA audits, which play an important role in your trucking journey.

Below, we have jotted down few points that will give you a clear cut understanding about IFTA Audits happening in Manitoba. However, we would be splitting it into two blog post as the list of questions are many and fitting them in one would make you go crazy. Besides, we just gave you a reason to be around our blog, awaiting for the next blog post.

Here comes the list of questions for your better understanding.

What are Audits?

Every IFTA licensee is subjected to be audited. Usually, Manitoba audits licensees on behalf of all the jurisdictions, whereas, other IFTA jurisdiction also audit Manitoba licensee as the procedure that is follow. However, a joint audit also can perform by two or more IFTA jurisdiction.

What Are These Audits Arranged For?

These audits emphasis on the evaluation of the licensee’s distance accounting system as per the distance allocation done by the jurisdiction, which is the basics for determining the licensee’s fuel consumption and tax obligation for each jurisdiction.

How Do I Know When I Will Be Audited?

If you’re the next to be audited, you will be intimated by the IFTA auditor, through phone call. Also, the auditor would follow up with a confirmation letter at least 30 days prior to the audit.

Do note, the 30 days notice would be waived off if you’re ready to take the audit in less than 30 days and agreeable for audit fieldwork to commence as per the schedule.

What Are The Information Required To Be Presented To The Auditor?

Well, during the initial phone call, the auditor will advice you on the records required and that would be audited. These records include, driver log books, trip sheets, MPI registration certificates and cab cards, fuel purchase receipts and /or commercial credit card or card lock statements, maintenance records showing odometer readings and records to support any withdrawals and purchases from a bulk storage facility, including fuel reconciliations.

Besides, you also need to submit a summary page to show the calculations supporting each quarterly filing IFTA tax return, which you had filed.

Note for Small Licensee: You need to provide a listing of fuel receipts per jurisdiction and listing of trips going outside the provinces, specifically showing the allocation among the jurisdiction per trips, either through odometer reading or estimation. Also, if you’re estimating the kilometers per jurisdiction, indicate how you arrived to the estimated value (i.e. maps, internet, distance software, general knowledge of area).

However, you would receive a pre-audit questionnaire to complete. You are suppose to return the questionnaire to the auditor within 10 days prior to your audit scheduled and once the auditor determines the sample to be revised, you can pull out the necessary documents and get all set for the auditing session.

Once the auditor and the licensee agree for the sample to be reviewed, the required documents and records can be provided. Also, all the documents should be ready for a presentation.

However, IFTA quarter has already started; it is good that you maintain a record of the required documents from the very first month in order to make a hassle-free filing this April. We at TaxIFTA.com assist you in preparing your IFTA form for the quarter. While you’re preparing your form online, you can also ask for assistance from our tax experts, who are set up to lend a helping hand all the time. Simply dial 1-866-245-3918 or shoot a mail to support@taxexcise.com