Town Hall Meeting July 15, 2009 Manchester, NH. Issues submitted to IFTA, Inc. –One USDOT Number – multiple IFTA licensees –3% Audit Requirement –New

INTERNATIONAL FUEL TAX AGREEMENT

Celebrating 25 Years of Cooperation and Trust - 2008

Town Hall MeetingJuly 15, 2009

Manchester, NH



• Issues submitted to IFTA, Inc.– One USDOT Number – multiple IFTA

licensees– 3% Audit Requirement– New VT Surcharge– Re-Examination and Re-Audit/Reasonable

Cause– How to get rid of the gas tax– CDs for ABM



• Multiple accounts tied to one USDOT number– Two accounts active; one inactive– In this example, a carrier allowed two

owner/operators to use its USDOT number to apply for an IFTA license. One of those owner/operators did not file tax returns and the license was revoked.

– The carrier received IFTA citations because of the owner/operator with a revoked license.



• IFTA Audit Committee's survey on the 3% audit coverage requirement. – Although 35 jurisdictions responded to the survey that

the 3% requirement is appropriate (compared to 14 who responded that the requirement is too high, 1 who responded that the requirement is too low), support for change to the 3% requirement is exactly even, 25 for and 25 against.

– Also, 32 jurisdictions responded they encountered difficulty in meeting the 3% requirement and provided various reasons.



– Since there still seems to be some concerns regarding the 3% requirement, is there plan to review the 3% requirement?



– How is the 3% requirement actually arrived at so that one can say whether it is appropriate or not?



– Has the 3% requirement been compared to other yardsticks to see whether it is too high or too low?

• I have taken a look at some other revenue departments' website and found that risk assessment contributes a lot to the appropriate level of audit coverage, so that a fixed audit coverage may not work all the time.



– Should risk and potential revenue loss be considered instead of a blanket 3% requirement?

• I also found in one website that considering the risk, targeted audit coverage on a specific sector is just around 1.2%, so that the department can focus their attention and resources to other higher risk sectors.



– Should some flexibility be provided on the 3% requirement, or are there alternatives to just auditing 3% (such as demonstration of internal control) that we can consider so that we can make best use of our audit resources?



• New Vermont Surcharge



• Re-Examination and Re-Audit Provisions– Reasonable Cause



• How to get rid of the gas tax?

Documents

Town Hall Meeting July 15, 2009 Manchester, NH. Issues submitted to IFTA, Inc. –One USDOT Number – multiple IFTA licensees –3% Audit Requirement –New