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. For more information, please contact Motor Carrier Services Audit at 803-896-2680 or MCSHQ@scdmv.net.
All Lease agreements pertaining to the audit period(s) must be maintained and presented upon audit.
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) to which the records pertain
- Trip origin and destination (city and state)
- Routes of travel
- Beginning and ending odometer readings
- Total trip distance
- Distance traveled in each jurisdiction during the trip
- Unit number or vehicle identification number
- Fleet number
- Registrant’s name
- Driver’s name
Global Positioning System (GPS)
For records produced wholly or partly by a vehicle-tracking system, including a system based on a global positioning system (GPS) :
- The original GPS or other location data for the vehicle to which the records pertain
- The date and time of each GPS or other system reading location of each GPS or other system reading
- The beginning and ending reading from the odometer, hub-odometer, engine control module (ECM), or any similar device for the period to which records pertain
- The calculated distance between each GPS or other system reading
- The route of the vehicle's travel
- The total distance traveled by the vehicle
- The distance traveled in each jurisdiction
- The vehicle identification number or vehicle unit number
- A summary of the fleet's operations for each month, which includes both the full distance traveled by each apportioned vehicle in the fleet during the calendar month, and the distance traveled in the month by each apportioned vehicle in each jurisdiction
- A summary of the fleet's operations for each calendar quarter, which includes both the full distance traveled by the vehicles in the fleet during the calendar quarter, and the distance traveled in each jurisdiction
- A summary of the quarterly summaries
- Computer summaries must be substantiated by the source documents used to generate figures and must be made available upon request
Note: Summaries must be made available for audit upon due notice and demand by the base jurisdiction
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
- Price of the fuel per gallon or total price of the fuel purchased
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 IFTA and IRP, 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
PO Box 1498
Blythewood, SC 29016-0027