How ELDs Affect IRP/IFTA Tax Returns & DOR Audits
The congressionally mandated electronic logging device (ELD) rule makes tracking, managing and sharing driving records with law enforcement more straightforward and faster. However, most ELDs fall short when it comes to paying and documenting fuel taxes and IRP.
Nationwide, almost 30% of IFTA and IRP audits result in an “inadequate records” assessment; many of which are due to relying on ELDs for recordkeeping.
Most ELDs were designed specifically to meet only the federal government's requirements to document hours of service for drivers and do not satisfy recordkeeping requirements for IFTA and IRP. Also, most ELDs do not archive data beyond the six months federal mandate for driver records. Some ELD companies may offer additional programming or custom configurations for a substantial charge, but it’s important to make sure that the vendor meets all recordkeeping, reporting and archive requirements.
If your ELD or recording device is not configured to, or cannot give all of the necessary information for the required length of time, other sources of data must be used to meet reporting and recordkeeping requirements which are found on our IFTA/IRP Recordkeeping Tips.
If you are audited and your IFTA or IPR records are rated as inadequate, the following adjustments will be made:
- your reported miles per gallon will be reduced to 4.0 or reduced by 20%, which will result in increased consumption and tax due (IC 6-6-4.1-9 and IFTA Article P570);
- any reported tax-paid credit gallons without a supporting fuel receipt(s) will be disallowed credit (IC 6-6-4.1-6 and IFTA Article P550); and
- you will be assessed 20% of the apportionable fees paid for the registration year audited. (IRP Plan Article x-1015).
The Federal Motor Carrier Safety Administration (FMCSA) has a designated website for ELD implementation. Also, refer to your ELD’s manual or manufacturer’s website for configuration and use directions.
For more information on Indiana Motor Fuel Taxes or IFTA, see DOR’s Fuel Tax Account Quick Reference Guide and the International Fuel Tax Agreement Information Handbook. For more information on IRP, see our IRP page and the DOR International Registration Plan Handbook. For more information on DOR audits, see IFTA/IRP Audit Tips and Audit Manual.
Contact DOR Motor Carrier Services for help with your fuel tax account.