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IFTA Non-Receipted Fuel Adjustments. Presentation for IFTA ABM August, 2013 Reno, NV. Panel. Cindy Arnold(NV) – APC Joy Prender(MO) - PCRC. Please people…. Let us pay you what we owe you!. Issue. Some jurisdictions will not accept adjustment and/or non-tax paid fuel
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IFTA Non-Receipted FuelAdjustments Presentation for IFTA ABM August, 2013 Reno, NV
Panel • Cindy Arnold(NV) – APC • Joy Prender(MO) - PCRC
Please people… • Let us pay you what we owe you!
Issue • Some jurisdictions will not accept adjustment and/or non-tax paid fuel • Missing receipts, Indian Reservation purchases, unacceptable receipts • Misconception that total fuel and total tax paid fuel has to balance. • Has become more of an issue with electronic returns. • Have to have allow for adjustment fuel or correct amount of tax cannot be paid.
History… • Has been a common misunderstanding for a number of years • Becoming more prevalent with the use of e-file for quarterly reporting • Can’t change with the stroke of a pen • Happens quarter, after quarter, after quarter • Need to be able to accept the data as filed without continuous follow-up
What is the concern? • Who requires that tax paid gallons/liters equals total gallons/liters? • Do you know if you even have this issue?
Research • Our research discovered that there are at least eight (8) jurisdictions where tax returns are not accepted as filed if total fuel does not match tax paid fuel. • Includes both paper and e-returns.
The Result of non-acceptance • It creates an increased amount of work • File the return with the non-IFTA fuel and a check. • Wait to see if it is accepted. • Check and return in most cases sent back to carrier (service bureau). • Carrier doesn’t want to cash the refund check issued because they know they’ll have to pay on audit. Plus penalty, plus interest.
In Summary Effect on individual jurisdictions vary: 1) If the jurisdiction is owed tax, they always lose tax that is due 2) If a jurisdiction is owed a credit, they are always credited too much tax.
In Summary (2) • Jurisdictions aren’t getting their share of tax • Auditors have to deal with it • Industry wants to pay, but can’t • Pay more through penalty and interest
How jurisdictions handle this • Most jurisdictions allow for this and here is how…
Start of discussions • IAC meeting in Indianapolis discussed ballot #01_2013 as possible way to address this • Seems to be a problem with e-file • Problem may get worse as more jurisdictions e-file • Start discussion to see how to approach • Approached the Ballot sponsors
Continued Discussion • Had a number of meetings with APC, PCRC to discuss possible solutions. • Formed a sub-committee • Verified that there seems to be a problem and would like to address it. • Kicked around a bunch of ideas. • Came up with some potential strategies.
Potential Strategies • Amend Ballot #01_2013 • FTPBP 1-2013 - P700 APC-PCRC-1.pdf • Amend to include P710 • .600 Total number of Non-IFTA or non-tax paid gallons or litres • New Ballot - P710 • Gives jurisdictions flexibility of where to put the additional fuel • Allows for flexibility in programming • Training & information sessions • IFTA/IRP Managers; IFTA/IRP Audit Workshop?
Point us in a Direction • How would you see this process being improved? • Questions/comments?
IFTA Non-Receipted FuelAdjustments Presentation for IFTA ABM August, 2013 Reno, NV