IRP and IFTA Audits
Under the provisions of the International Registration Plan (IRP) and the International Fuel Tax Agreement (IFTA), South Carolina is required to conduct audits on motor carriers that claim this state as their base to ensure compliance with the terms of the IFTA Audit Manual and the IRP Audit Procedures Manual. Audits will be performed during normal business hours and, to the extent possible, notification will be given in advance. You may refer to the Motor Carrier Services Manual for more information.
Acceptable Source Documents
Individual Vehicle Distance Record
You are responsible for maintaining records of all operations of qualified/apportioned motor vehicles. An acceptable source document used to verify fleet operations is through the use of an Individual Vehicle Distance Record (IVDR). A standardized IVDR is suggested and encouraged, but not required. At a minimum, an IVDR must contain all of the following information:
- Date of trip (starting and ending)
- Trip origin and destination
- Routes of travel
- Beginning and ending odometer readings
- Total trip distance
- Distance by jurisdiction
- Unit number or vehicle identification number
- Fleet number
- Registrant’s name
- Driver’s name
You must maintain complete records of all fuel purchases. Separate totals must be compiled for each fuel type. Fuel purchased as storage fuel or over the road purchases are to be accounted for separately. Fuel records must contain all of the following information:
- Date of purchase.
- Name and address of the seller.
- Number of gallons purchased.
- Type of fuel purchased.
- Unit number of the vehicle into which the fuel was placed or license plate number.
- Purchaser’s signature
Acceptable fuel receipts include an invoice, a credit card receipt, or verifiable microfilm/microfiche of same. The SCDMV will not accept receipts that contain alterations or erasures.
Bulk Fuel Storage
If you maintain a bulk fuel storage facility, you may receive credit for tax previously paid on fuel withdrawn from that facility if the following records are maintained:
- Date of withdrawal.
- Number of gallons withdrawn.
- Fuel type.
- Unit number of the vehicle into which the fuel was placed.
- Purchase and inventory records to substantiate that taxes were paid on all bulk fuel purchases.
If you maintain a bulk fuel storage facility you must maintain bulk fuel storage reconciliation records. Records should be separate for retail purchases and bulk storage withdrawals.
Record Retention Period
Under the provisions of International Fuel Tax Agreement and International Registration Plan, operations records must be maintained for five years.
Records Not Maintained in SC
In the event the motor carriers’ operational records are not located in South Carolina and it becomes necessary for auditors to travel to the place where such records are normally kept, the motor carrier is responsible for all expenses incurred during the audit, including travel and per diem, and must promptly reimburse the SCDMV for those expenses.
You may appeal any action or audit finding by submitting a written request for an administrative hearing within 30 days of receipt of the original notice of assessment. If the hearing is not requested within 30 days, the action or audit finding is final.
The SCDMV will notify the licensee in writing of the findings and rulings of the appeal.
If you need assistance establishing a distance/fuel record keeping system or providing an evaluation of your existing record keeping system, contact the office below:
Motor Carrier Services/Compliance Unit
P O Box 1498
Blythewood, SC 29016