Fuel tax administration can be challenging enough, but when the issue involves the International Fuel Tax Agreement (IFTA), things get even more complex. For those who own and operate fleets of qualified motor vehicles that travel across states or provinces, it\u2019s mandatory.<\/p>\n\n\n\n
Perhaps the most frequently asked question by many fleet administrators and owner-operators is, \u201cHow long do I really need to keep all these records?\u201d<\/p>\n\n\n\n
The Short Answer: Exactly Four Years<\/strong><\/p>\n\n\n\n Under the IFTA<\/a><\/strong> rules, you should keep all documents supporting your quarterly fuel tax reports for four years.<\/p>\n\n\n\n However, “four years” is not always as clear-cut as it seems. The period does not necessarily begin from the first day of the operating year. Instead, it runs from the earlier date of when the tax return became due or when it was actually filed.<\/p>\n\n\n\n If the quarterly return has been filed late, your four-year period begins on the date of that late filing. In addition, the four years may be legally extended if there are waivers or jeopardy assessments.<\/p>\n\n\n\n What Documents Count as IFTA Records?<\/strong><\/p>\n\n\n\n For an IFTA audit, there is the need for evidence on each mile traveled and each gallon of fuel consumed. The incorrect disposal of the wrong document will result in audit penalties. The four-year record should contain two main buckets of information:<\/p>\n\n\n\n 1. Distance Records (Proof of Mileage)<\/strong><\/p>\n\n\n\n You need to document every mile traveled across both member and non-member jurisdictions. Acceptable distance records\u2014whether generated via traditional Individual Vehicle Distance Records (IVDRs) or an automated ELD<\/a><\/strong>\/GPS system\u2014must capture:<\/p>\n\n\n\n 2. Fuel Receipts (Proof of Purchases)<\/strong><\/p>\n\n\n\n You must keep complete records of all retail and bulk fuel purchases used to propel your registered vehicles. Acceptable retail fuel receipts or invoices must clearly display:<\/p>\n\n\n\n\n