IFTA Audit

Definition

An IFTA audit is the periodic review every base jurisdiction must perform on a portion of its IFTA licensees under the IFTA Audit Manual. Auditors verify reported miles per jurisdiction against original source documents (driver trip sheets, ELD logs, dispatch records, fuel receipts) for a sample period - typically four consecutive quarters. Findings can result in additional tax assessments, penalty, and interest; major discrepancies can trigger a multi-year look-back. Base jurisdictions must audit an average of 3 percent of their IFTA accounts per year (IFTA Audit Manual A250). Licensees must keep their distance and fuel records for four years after the return was due or filed, whichever is later (IFTA Procedures Manual P510).