Motor Carrier Services Manual
All individuals who license their vehicles under the IRP and/or the IFTA are required to maintain operational records. Operational records must be maintained to substantiate mileage and fuel use reporting for the current and previous three (3) license years.
MILEAGE RECORD KEEPING
Mileage records must be maintained for ALL movement of a qualified vehicle including loaded, empty, deadhead, and/or bobtail. One of the following sources should be consistently used to determine vehicle mileage:
1. State maps;
2. Standard mileage guides;
3. Odometer and/or hubodometer readings; or
4. Computer programs based on actual routing.
Mileage should be recorded on an Individual Vehicle Mileage and Fuel Record (IVMR). An acceptable IVMR should contain the following information:
1. Date of trip (starting and ending);
2. Trip origin and destination;
3. Route of travel;
4. Beginning and ending odometer and/or hubodometer reading of the trip;
5. Total trip miles;
6. Mileage by jurisdiction; and
7. Unit number or vehicle identification number.
The Alabama Department of Revenue may waive either item 3 or 4 above and may require an IVMR to include additional information as follows:
1. Vehicle fleet number;
2. Licensee’s name;
3. Trailer number; and
4. Driver’s signature and/or name.
The information recorded on the IVMRs must be accurate and legible. IVMRs should be used to prepare monthly and/or quarterly recaps from which mileage and fuel can be reported.
FUEL RECORD KEEPING
The licensee must maintain complete records of all motor fuel purchased, received, and used in the conduct of its business. Separate totals must be compiled for each motor fuel type. Retail fuel purchases and bulk fuel purchases are to be accounted for separately.
Retail purchases must be supported by a receipt or invoice, credit card receipt, automated vendor generated invoice or transaction listing, or microfilm/microfiche of the receipt of invoice. An acceptable receipt or invoice must include, but shall not be limited to, the following:
1. Date of purchase;
2. Sellers name and address;
3. Number of gallons purchased;
4. Fuel type;
5. Price per gallon or total amount of sale;
6. Unit number or vehicle identification number; and
7. Purchaser’s name (In the case of a lessee/lessor agreement, receipts for tax paid purchases may be in the name of either party provided a legal connection can be made to the reporting party).
Bulk fuel is normally delivered into storage facilities maintained by the licensee, and fuel tax may or may not be paid at the time of delivery. The licensee must retain copies of all delivery tickets and/or receipts. Bulk fuel inventory reconciliations must be maintained. For withdrawals from bulk storage, records must be maintained to distinguish fuel placed in qualified vehicles from other uses. To obtain credit for withdrawals from licenseeowned, tax paid bulk storage, the following records must be maintained:
1. Date of withdrawal;
2. Number of gallons;
3. Fuel type;
4. Unit number or vehicle identification number; and
5. Purchase and inventory records to substantiate that tax was paid on all bulk purchases.
AUDITS
Under the provisions of the IRP and IFTA, the State of
1. Licensee’s principal place of business;
2. Offices of the licensing agencies, leasing companies, or service representatives;
3. Offices of the Alabama Department of Revenue; or
4. Other locations as agreed upon by the licensee or its representative.
If the records are not made available, or if the records are inadequate for examination purposes, an assessment of liability may be imposed and the license(s) subsequently revoked.
Upon completion of the audit, the Department of Revenue shall provide the audit findings to the licensee and all affected member jurisdictions. If the licensee does not agree with the audit findings, the licensee will have thirty (30) days from the date it is notified of the audit findings to file a written appeal.
Penalty and/or interest on audit assessments shall be made in accordance with the statute of each jurisdiction and may be individually assessed by affected IRP/IFTA member jurisdictions.
APPEALS
A licensee or applicant may appeal an action or audit finding issued by the commissioner of any member base jurisdiction by making a written request for a hearing within 30 days after the service of notice of the original action or finding. If the hearing is not requested in writing within 30 days, the original finding or action is final.
The hearing shall be held expeditiously, but may be continued for reasonable cause being shown by either party. The base jurisdiction shall give at least 20 days’ written notice of the time and place of the hearing. The licensee may appear in person and/or be represented by counsel at the hearing, and is entitled to produce witnesses, documents, or other pertinent material to substantiate the appeal. If the licensee appeals an assessment for one or more jurisdictions, it will be the responsibility of the base jurisdiction to participate in the appeal process on behalf of the other jurisdictions.
The base jurisdiction will notify the appellant of the findings of fact and the ruling on the appeal.
Further appeal of any jurisdiction’s finding will proceed
in accordance with the Alabama Taxpayers’ Bill of Rights. In the case of an
audit, if the licensee is still in disagreement with the original finding, the
licensee may request any or every jurisdiction to audit the licensee’s records.
Each jurisdiction to which a request is made may elect to accept or deny the
request. Each jurisdiction electing to audit the licensee’s records will audit
for its portion of the licensee’s operations. The licensee shall make records
available at the office of the jurisdiction or at a place designated by the
jurisdiction or pay reasonable per diem and travel expenses associated with
conducting an audit at the licensee’s place of business.
