Audits typically occur every few years, although carriers with irregular reporting or red flags may face them more often. Here’s what to expect during the process:

1. Notification Letter – Your base state will notify you of the audit, including a list of records required.
2. Record Review – Auditors examine your fuel receipts, mileage logs, trip reports, and odometer readings. They check for consistency between reported miles and actual routes.
3. Cross-Verification – Auditors compare your data with electronic logging devices (ELDs), GPS tracking, and fuel purchase documentation.
4. Findings Report – You’ll receive a report summarizing discrepancies and any additional tax owed, along with penalties or fines if applicable.

If your records are incomplete or inaccurate, penalties can be severe — sometimes exceeding the cost of the original fuel taxes.

Common IFTA Audit Triggers

Carriers are often selected for audits randomly, but certain red flags can increase your chances:

• Inconsistent fuel purchases vs. mileage (e.g., reporting miles without fuel purchases)
• Rounded numbers on reports instead of exact odometer readings
• Missing trip sheets or logs
• Failure to keep records for four years (required by IFTA rules)
• Frequent late filings or amended returns

Tips to Stay Prepared for an IFTA Audit

1. Keep Detailed Records – Maintain accurate mileage logs, trip sheets, and fuel receipts. Electronic logging devices (ELDs) make this easier.
2. Save Documentation for Four Years – IFTA requires all records to be retained for audit purposes.
3. Use Fleet Management Software – Automating recordkeeping reduces human error and makes audit preparation much smoother.
4. Cross-Check Before Filing – Always verify odometer readings and fuel purchases before submitting reports.
5. Stay Consistent with Deadlines – Filing on time each quarter reduces audit risks and avoids late penalties.