Mileage Reporting Tips

When filing an International Fuel Tax Agreement (IFTA) tax return, be sure to report your accurate distance/fuel during the reporting period. A common mistake seen during audits of IFTA Tax Returns is unrealistic distance and/or fuel reports.

Similarly when filing an International Registration Plan (IRP) renewal, be sure to report your accurate distance traveled per jurisdiction during the reporting period. A common mistake seen during audits of IRP Accounts is unrealistic distance reports.

IFTA tax returns: Carriers must not estimate distance or fuel for jurisdictions based on the actual distance or fuel the fleet accumulated in the reporting period.

IRP renewals: Carriers must not estimate distance for jurisdictions based on the actual distance the fleet accumulated in the reporting period. 

If you are filing an IFTA Tax Return and/or IRP Renewal, and receives an alert that states "Unrealistic Distance and/or Fuel reporting," you must bring your distance and fuel records into an SCDMV branch office that processes Motor Carrier Services (MCS) transactions and provide the records for review. Once the records have been verified to be true and correct, the branch office will override the alert.  

Here is a video guide to completing your IRP renewal.

Distance Records (IFTA and IRP):

You must maintain the original driver-prepared Distance Record(s) on each vehicle for each trip and recap on monthly and quarterly fleet summaries. Adequate distance records must include the following:

  1. Date(s) of trip (starting and ending)
  2. Trip origin and destination (city and state)
  3. Route of travel (highway numbers)
  4. Beginning and ending odometer/hubometer readings of the trip
  5. Total trip distance
  6. Distance by jurisdiction
  7. Unit number or vehicle identification
  8. Driver’s name

Fuel Records (IFTA Only)

You must maintain original fuel source documents for each fuel type for each vehicle. This information should flow into monthly and quarterly fleet summaries. Over-the-road fuel purchases and bulk fuel purchases are to be accounted for separately.

Over-the-Road Fuel Purchases

Over-the-road fuel purchases must be supported by a receipt, invoice, credit card receipt, or an automated vendor-generated invoice or transaction listing for tax-paid credit. An acceptable fuel receipt or invoice must include:

  1. Date of purchase
  2. Name and address of seller
  3. Number of gallons/liters purchased
  4. Type of fuel purchased
  5. Price per gallon/liter
  6. Unit number or vehicle identification
  7. Purchaser’s signature

Bulk Storage Fuel Purchases

Bulk storage fuel purchases must be supported by delivery tickets and/or receipts. You must also have a reliable meter on your bulk tank. To receive tax paid credit, the following information must be maintained:

  1. Date of withdrawal
  2. Number of gallons/liters withdrawn all bulk withdrawals
  3. Type of Fuel
  4. Unit number or vehicle identification
  5. Purchase and inventory records showing tax was paid on fuel purchase(s)
  6. Meter readings, inventory measurements and monthly reconciliations

Record Keeping (IFTA and IRP)

The IFTA and IRP require carriers to maintain adequate records for a period of 3 years from the filing date or due date, whichever is the latest. You are required to read and sign the MC-7 annually, which states you will maintain accountable distance records. This includes:

  • Interjurisdictional and Intrajurisdictional distance
  • Loaded and empty distance
  • Deadhead and/or bobtail distance
  • Off-highway distance
  • Trip permit distance

Resources

GPS data and the online IFTA Trip Calculator are tools that can assist you with maintaining accurate mileage reports. 

For more information on Mileage/Fuel Reporting, please contact MCSHQ@scdmv.net. Please provide the following in the subject line of the email, your name, customer number, and contact number. Allow 24 to 48 hours for a response or contact Motor Carrier Services Helpdesk at 803-896-3870.