An Ohio Department of Taxation auditor conducts all IRP and IFTA audits. The goal of the audit is compliance with a focus on the distance and fuel accounting systems. For the IRP audit, the auditor determines if the vehicle distance reported on the IRP renewal is accurate. For the IFTA audit, the auditor also determines accuracy for distance, fuel, and MPGs on the IFTA returns.
- The auditor sends the Audit Commencement Letter (ACL) to the carrier to begin the audit. The date on the letter is the audit's start date.
- The carrier contacts the auditor listed on the letter. The auditor explains the forms included in the mailing, outlines the audit period, advises the carrier of the necessary records, and answers any questions for the carrier.
- The carrier completes and returns the Opening Audit Questionnaire and Representative Quarter Agreement. The carrier also provides an equipment list and quarterly distance and fuel summaries, by state and vehicle, for the audit reporting period.
- The auditor selects the test quarter(s) and vehicle(s), then requests distance and fuel records for the selected quarter(s) and vehicle(s).
- The auditor receives the distance and fuel records and begins the audit testing.
- When testing is finished, the auditor has a closing conference with the carrier to discuss the preliminary audit results, the recommendations of improvements to record keeping and reporting practices, and the carrier's appeal rights.
- The auditor prepares an audit report and audit workpapers. The report and workpapers, along with any original records provided, are mailed to the carrier.
IFTA requires distance and fuel purchase records be retained for four years from the tax return due date or return filing date, whichever is later. These are the records used to support the filed tax returns.
IRP requires distance records be retained for three years after the close of the registration year. These records are used to support the information reported on the annual renewal.
IFTA requires unused decals be kept for at least four years. If a decal is damaged, the licensee should document the decal number and replacement number and keep this information with their mileage and fuel records. The carrier should remove decals from vehicles no longer in service.
To pay by check, follow the direction on the closing audit letter and mail to the auditor's attention. Make checks payable to "Ohio Treasurer of State".
To pay online, using the Ohio Business Gateway, choose the "Filing Period" option and apply the payment to the fourth quarter of the license year of the audit.
After the IRP audit is completed and a 60-day objection period has passed, the Ohio Department of Taxation sends the results to the Department of Public Safety's (DPS) Bureau of Motor Vehicles (BMV) division for processing. The carrier will receive a letter from DPS. If the carrier has an amount due, the DPS will send a bill. The carrier should follow the instructions on the letter.
If the audit results in a refund, the carrier will receive a check from the Bureau of Motor Vehicles.