general information sheet - ifta, inc. bo 1 detail.pdf · general information sheet: ... ny...

General Information Sheet: Please complete all information in BLUE.Check all information in RED to verify correctness.

Anchor Transport, Inc. Change any incorrect information.DBA: DBA Name If you are not doing three audit periods,Business Address: 1 Marv Levy Blvd. Buffalo, NY 14203 enter "N/A" in the year slots for the extra periods.

1 Marv Levy Blvd. Buffalo, NY 14203 Change the N to a Y for Full AL Fee or Deny CreditsTaxpayer Telephone Num: (000) 000-0000 if applicable (N = No, Y = Yes).Contact/Representative: Erin BrockawitchContact Telephone Num: (518) 457-4532IFTA License No: NY 12345678900 Audit Period: 01/01/2002 through 12/31/2002

NY 12345-001 Audit Period: 01/01/2003 through 12/31/2004Renewal Month: 12Appointment Date: 11/17/2003Appointment Location: taxpayer's office at 9:00 AM.Delivery Date: 01/29/2004Interest End Date: 01/29/2004 (Change to 30 days from the Delivery Date if mailing or not collecting payment)

2004 Period: 01/01/2003 through 12/31/2004 Full AL Fee (Y/N)? N07/01/2001 through 06/30/2002 Deny Credits (Y/N)? N

Interest Begin Date: 01/01/2003 (1st Day of Month following registration month)





COMMENTS:

Auditor Name: IFTA/IRP AuditorAuditor Address: 1 Freedom Way Albany, NY 12345Telephone Num: (518) 497-1234Email: Auditor@IFTA/IRP.com

Mileage Year:

IRP Audit Period 1:Mileage Year:

IRP Audit Period 2:Mileage Year:

Taxpayer:

Mailing Address:

IRP Account No:

IRP Audit Period 3:

MVA-205/02

Taxpayer:

IFTA License No:

Audit Period(s): IFTA: 01/01/2002 through 12/31/2002 IRP: 01/01/2003 through 12/31/2004

This audit program serves as a guide for the audit process. Note any taxpayer contact on the Contact Log and document the audit hours for each section or step.Document any additional steps taken in the area provided below the applicable section.

Time WP Ref. DateI. Preliminary Audit Procedures

The purpose of performing the preliminary audit procedures is to familiarize

the auditor with the carrier's business and reporting history.

A. Establish an Audit File on the Taxpayer

1. Review Department computer systems, IFTA tax returns and/or IRP registration information to determine

a. Name, address, and location of taxpayer

b. Account number(s) for IFTA/IRP

c. Audit Period(s) for IFTA/IRP

d. Responsible individual(s)

e. Statute of limitations

f. Request inload for selected audit period(s)

2. Input reported IFTA and/or IRP information into MV audit program(s) to include

a. Taxpayer's name, address, account number(s), audit date(s), and audit period(s)

b. Reported IRP miles

c. Reported IRP fee billings

d. Equipment list from IRP regisration(s)

e. RPC inload into FoxPro IFTA Audit Package

3. Analytical Review

a. Review reported distance, fuel, and MPG

b. Check for possible exempt distance and/or fuel

4. Review previous audits (if applicable)

B. Pre-audit Contact

1. Notify taxpayer that their IFTA/IRP account(s) has been selected for audit

2. Confirm the audit appointment, audit period(s), and audit location

3. Confirm the taxpayer's name, address, contact, and phone number

4. Confirm account number(s),if they have any other accounts, and inquire about previous audits

5. Confirm the type(s) and availability of distance/fuel records maintained

6. Discuss the nature and type of business

7. Discuss the following items to be mailed to the taxpayer:

a. Audit Engagement Letter with attachment

b. Taxpayers' Bill of Rights

c. Pre-Audit Questionnaire

d. Document Receipt (if applicable)

e. Agreement Extending Period of Limitation For Assessment or Refund (if applicable)

f. Power of Attorney and Declaration of Representative (if applicable)

8. Instruct the taxpayer to sign and return the engagement letter

C. Mail pre-audit information to the taxpayer

1. Audit Engagement Letter with attachment

2. Taxpayers' Bill of Rights

3. Pre-audit questionnaire

4. Auditor's business card

5. Agreement Extending Period of Limitation For Assessment or Refund (if applicable)

6. Power of Attorney and Declaration of Representative (if applicable)

CommentsAudit Procedure

International Fuel Tax AgreementInternational Registration Plan

Audit Program

Anchor Transport, Inc.

NY 12345678900 IRP Account No: NY 12345-001

Page 1 of 5

MVA-205/02

Time WP Ref. DateCommentsAudit Procedure

D. Received and reviewed pre-audit information from taxpayer

1. Signed copy of Engagement Letter

2. Pre-audit questionnaire

3. Monthly or Quarterly distance and/or fuel recaps

4. Sample IVMR

5. Taxpayer Equipment list



8. distance and/or fuel records (desk audit)

E. Other Information/Comments

Section Hours

0.00

II. Opening Conference and Internal Control EvaluationThe purpose of the opening conference is to obtain factual information about the carrier's

business that will enable the auditor to conduct a thorough and efficient examination.

A. Conduct Opening Conference

1. Discuss pre-audit questionnaire with taxpayer including business operations, internal control,

other accounts, locations, personnel responsibilities, bulk fuel, leases, etc.

2. Discuss taxpayer's record keeping system and operational records

3. Explain audit process

B. Internal Control Evaluation

1. Document your understanding of the internal control structure

a. Document the personnel responsible for preparing the

distance/fuel records, verifying distance and fuel data, and

reporting distance/fuel data

b. Document changes in accounting procedures or operations

c. Document available distance/fuel records

d. Document the flow of transactions

e. Document report preparation procedures

2. Trace transaction through taxpayer's record keeping system

3. Reconcile current year's IFTA decals

4. Reconcile equipment lists

C. Sampling

1. Determine extent of field work (sampling)

2. Discuss sampling methodology with taxpayer

3. Discuss proposed sample with taxpayer (if applicable)

D. Obtain/Request records needed to perform the audit

E. Complete Document Receipt form (if applicable)

F. Other Information/Comments

Section Hours

0.00

Page 2 of 5

MVA-205/02


III. Field WorkThe purpose of conducting the field audit work is to verify the extent of

the carrier's compliance with the IFTA and IRP Rules and Regulations.

A. distance Examination

1. Reconcile jurisdictional and total distance recorded in recaps with reported information

2. Reconcile jurisdictional and total distance recorded in recaps with source documents

3. Verify reliability of reported distance from source documents (IVMRs) via sampling or

100% audit

a. Verify distance via the use of odometer/hubodometer readings, computer distance

program based on route of travel, and/or other records as available and/or appropriate

4. Verify any exempt distance (if applicable)

5. Document distance Examination Findings (Prepare audit schedules and/or worksheets to reflect):

a. Reported jurisdictional and total distance from recaps

b. distance Verification (detail testing of trip reports)

c. Error Projection Rates for distance (if applicable)

d. One-time distance adjustments (if applicale)

e. Audited jurisdictional and total distance

B. Fuel Examination (tax paid fuel purchases of each fuel type)

1. Reconcile jurisdictional and total gallons recorded in recaps with reported information

2. Reconcile jurisdictional and total gallons recorded in recaps with source documents

3. Verify over the road fuel purchases via sampling or 100% audit

4. Verify tax paid on all fuel used over the road

5. Verify tax exempt fuel purchases (if applicable)

6. Verify fuel purchases for bulk storage (if applicable)

7. Verify withdrawals from bulk storage via sampling or 100% audit (if applicable)

8. Perform bulk storage reconciliation (if applicable)

9. Perform MPG analysis

10. Document any fuel purchases or withdrawals for which tax paid credit was denied

11. Document Fuel Examination Findings (Prepare audit schedules and/or worksheets to reflect):

a. Reported jurisdictional and total fuel purchases from recaps

b. Fuel Verification (OTR and bulk storage)

c. Error Projection Rates for fuel (if applicable)

d. One-time fuel adjustments (if applicable)

e. Audited jurisdictional and total fuel purchases

C. Input audit data into IFTA and/or IRP audit program(s)

D. Other Information/Comments

Section Hours

0.00

Page 3 of 5

MVA-205/02


IV. Completion of AuditThe purpose of the summary work (completion of audit) is to finalize the audit

for issuance of the notices of deficiency determination.

A. Summary Work

1. Audit Report

a. Records Evaluation

b. Audit Narrative

2. Proposed Audit Adjustment of IRP Fees Due

3. Proposed Audit Adjustment of IFTA Tax Due

4. IRP Audit Summary for each license year

5. Audit Summary (IFTA)

6. Reported MPG VS. Audited MPG

7. Aud Detailed Return Summary

8. Reported Return Summary

9. Reported Detailed Return Summary

10. Audit Program

11. Contact Log

12. Audit Engagement Letter with Attachment

13. PreAudit Questionnaire

14. Document Receipt (if applicable)



17. Audit Workpapers and/or Schedules (includes IRP registration billiing notice summaries)

18. Equipment List

19. Supporting Exhibits of Taxpayer Records

B. Submit audit for supervisory review

C. Correct errors and/or schedule audit delivery


Section Hours

0.00

V. Post-Audit ConferenceThe purpose of the post-audit conference is to review the auditor's findings with the carrier.

A. Provide copy of audit report to taxpayer

1. Section IV. A. Summary Work, Items 1- 9

B. Conduct post-audit conference

1. Discuss audit findings and adjustments

2. Suggest recommendations for improvement

3. Explain interest calculations, penalties, and refund procedures

4. Advise taxpayer of appeal rights

5. Present taxpayer with IRP audit billing

6. Present taxpayer with IFTA audit billing

7. Collect Remittance for IFTA and/or IRP

8. Receive written correspondence from the taxpayer

a. Request for waiver of penalty

b. Contentions

Page 4 of 5

MVA-205/02


C. Submit remittance and completed audit package for processing (including taxpayer correspondence)

1. Audit Report Cover Memo

2. Remittance(s)

3. Correspondence from taxpayer

3. Section A. Summary Work (all items)


Section Hours

0.00

Total Hours The audit was conducted in accordance with Generally Accepted Auditing Standards (GAAS) and meets the requirements of General Standards,

0.00 Fieldwork Standards, and Reporting Standards of the AICPA as specified in the IFTA Audit Manual and IRP Audit Procedures Manual.

IFTA/IRP Auditor

Page 5 of 5

MVA-505/02

This questionnaire is designed to assist in determining the timing and extent of the audit field work. Please complete and return to:

IFTA/IRP Auditor1 Freedom WayAlbany, NY 12345(518) 497-1234Auditor@IFTA/IRP.com

Please review the following information and make corrections if necessary.

Company Name:

Business Address:

Mailing Address:

I. Type of Operation:

Type of Operation: Commodity Class:

Common Carrier For Hire Rental X All Logs

Contract Carrier For Hire Exempt Passengers

For Hire Exempt X Private Household Goods

Briefly describe your business activity: Manufacture and distribute beer

Briefly describe the type(s) of commodities (cargo) transported: Beer

II. Vehicles Currently Operated: Diesel Gas Other

Total vehicles (power units) operated in excess of 26,000 lbs (GVW).

(indicate the number of vehicles to include owned and leased vehicles). 16

Number of vehicles with IFTA decals supplied by your company? 7

Number of vehicles with IRP apportioned tags supplied by your company? 7

Do any of these vehicles travel exclusively in New York? Yes X No.

Are any of these vehicles leased from owner-operators? X Yes No. If No, go to page 2, section III.

(Please send along a listing of these owner-operators with this questionnaire.)

If you answered Yes to the above, how many vehicles are leased for less than thirty days? 10 .

Do you maintain the distance and fuel records for your owner-operators? X Yes No.

Are any of your owner-operators responsible for securing their own license plates? X Yes No.

Are any of these vehicles exempt from IRP registration? Yes X No.

If yes, please explain:

Number of Trailers owned/leased by your company? 3 Owned 10 Leased 13 Total.


Pre-Audit Questionnaire

IRP Account No.: NY 12345-001 IFTA License No.: NY 12345678900


1 Marv Levy Blvd. Buffalo, NY 14203

1 Marv Levy Blvd. Buffalo, NY 14203

Thirty days or longer?

Page 1 of 4

MVA-505/02

III. Internal Control:

Have there been any changes in your accounting procedures or operations, including personnel, during the audit period?

Yes X No. If Yes, changes in ______ Personnel ______ Operations ______ Procedures

Please list the personnel responsible for the following functions:

1.) Documenting/recording individual trip distance and fuel records: Drivers

2.) Verifying the recorded distance and fuel data: Erin Brockawitch

3.) Compiling distance and fuel summaries from recorded data: Erin Brockawitch

4.) Reporting distance and fuel data (IFTA tax returns/IRP registrations): CM

distance Documentation:

Are trip reports/envelopes, logs, and other documentation maintained by trip? X Yes No. N/A

Are records complete and easily attainable? X Yes No. N/A

Is any type of on-board computer used? Yes X No. N/A

Is distance reconciled with other sources (i.e. odometer readings)? Yes X No. N/A

Fuel Documentation:

Is fuel received by the vehicle recorded on the trip report (IDMR)? X Yes No. N/A

Are tax-paid invoices maintained and filed consistently? X Yes No. N/A

Are bulk fuel inventory records maintained? X Yes No. N/A

Are bulk fuel purchases, withdrawals, and inventories reconciled each quarter? Yes X No. N/A

Report Preparation:

Is reported distance and fuel data compiled from reconciled summaries? X Yes No. N/A

Are month-end cut-off procedures being consistently applied? X Yes No. N/A

Please describe the flow of a distance and fuel transaction through your record keeping system.

Each trip is distpatched by the company dispatcher. Trip reports are completed by the drivers and turned in to the office manager. The office manager uses

the trip reports to prepare quarterly distance and fuel summaries. Distance and fuel summaries are used to prepare IFTA and IRP tax returns.

Please provide any additional information you feel is necessary regarding your operations or record keeping system.


Page 2 of 4

MVA-505/02

IV. Records Maintained: The following questions relate to distance and fuel records maintained.

What type(s) of distance and fuel records are maintained?

X Individual Trip Records (IVMRs) Driver Payroll Records X Retail Fuel Receipts

X Driver Logs Dispatch Reports Trip/Fuel Permits

Maintenance Records X Bulk Fuel Records Lease Agreements

Are distance and/or fuel summaries prepared? Yes No. If yes, how often?

distance: Monthly X Quarterly Annually Other:

Fuel: Monthly X Quarterly Annually Other:

Are distance and fuel records maintained at the same location? Yes X No.

If No, please explain: Records for unit 99 are maintained at the Glen Falls location.

Are individual vehicle trip reports used by the drivers? X Yes No.

If yes, please check which information is contained on the trip report.

X Beginning and ending date of trip. X Driver's name. X Vehicle number.

X Fleet number. X Total trip miles. X Jurisdictional (by state) miles.

X Routes of travel. X Trip origin and destination. Intermediate stops.

X Fuel purchases or withdrawals

Individual trip data is filed by:

X Trip number. Driver ID #. Vehicle number. Date trip started/ended.

Other (please explain):

How are total and jurisdictional (state) miles determined?

X Odometer/hubodometer readings. Map/route miles. Computer software.

Standard distance guides Other (please explain):

Has there been travel in any jurisdiction that is exempt from distance reporting? X Yes No.

In which jurisdictions and why exempt: Massachusetts turn pike distance.

How is fuel purchased: X Tax paid at the pump. X Tax paid in bulk. Tax unpaid in bulk.

Fuel purchase invoices are:

X Filed with individual trip record. Segregated by jurisdiction. Segregated by vehicle.

Segregated by vendor. Other (please explain):

Answer the following if bulk fuel storage is maintained. Otherwise, go to section V.

How often is fuel inventory(ies) reconciled?

Daily. Weekly. Monthly. X Quarterly. Annually.

Are physical inventory readings taken? Yes X No.

Are fueling records maintained listing the date and vehicle fueled? X Yes No. If No, explain how

fuel withdrawals are accounted for:

Does your company maintain bulk fuel storage in any other jurisdiction? Yes X No. If Yes, in which

jurisdictions:


Page 3 of 4

MVA-505/02

V. Administrative:

In what jurisdiction(s) have the vehicles (including trailers) been licensed/registered? New York

Has your company previously been audited by any jurisdiction? Yes X No.

If Yes, please list jurisdiction(s), type of audit(s), and audit period(s):

Were any of your vehicles leased to another carrier during the audit period? Yes X No.

If yes, number of units leased? Name and address of carrier(s) leased to:

How are the drivers compensated? X By the mile By the hour Percentage of load Other (please describe):

VI. Additional documentation requested to be sent along with this questionnaire:

1.) Monthly or quarterly distance and fuel summaries, by jurisdiction for each vehicle operated during the period(s):

IRP: through IFTA: through .

2.) A copy of a completed trip report the drivers use to account for distance and fuel.

3.) A vehicle listing to include unit number, model year, make, type (truck or tractor), VIN, registered GVW,

fuel type, dates of operation, and indicate if leased.

4.) A copy of any lease agreement(s) applicable to company-owned units leased to other carriers.

Name of person responding to questionnaire: Erin Brockawitch

Title: Office Manager (518) 497-1518

Audit Contact (If different):

Title:

01/01/2002 12/31/2002


Telephone number:

Telephone number:

07/01/2001 06/30/2002

Page 4 of 4

RE: IRP Account Number: NY 12345-001IFTA Account Number: NY 12345678900

Dear Taxpayer:

The State of New York, as a member of the International Registration Plan (IRP) and the International Fuel TaxAgreement (IFTA), is required to conduct periodic audits of New York based carriers. The above referencedaccount(s) has been selected for audit for the following audit period(s)

IFTA: 01/01/2002 through 12/31/2002IRP: 01/01/2003 through 12/31/2004

Operational records should be available for audit on: 11/17/2003 at taxpayer's office at 9:00 AM.The enclosed list contains examples of records/information that may be required to conduct the audit. Additionpertinent records/information may also be requested during the audit. Audit period(s) may be expanded during thaudit to a full statute period for IFTA and/or IRP. A review of sales, use and/or lease taxes paid on vehicles wialso be conducted, if necessary

Please complete and return the enclosed Pre-Audit Questionnaire prior to the scheduled audit date. A New YorTaxpayer's Bill of Rights pamphlet is also enclosed for your review. Should you have any questions, I encouragyou to contact me at the above referenced telephone number

Sincerely,


Enclosures

Please sign and return one copy of this letter if the information relating to the audit engagement is corre

*Signature Title Date

* Must be an Owner, Partner, Corporate Officer, or hold a Power of Attorney for the company


1 Freedom WayAlbany, NY 12345

(518) 497-1234

October 1, 2003

Anchor Transport, Inc.1 Marv Levy Blvd.Buffalo, NY 14203

Erin Brockawitch

Auditor@IFTA/IRP.com

Records Required for the Audit:

Distance Records for the period 07/01/2001 through 6/30/2002 (3Q2001 – 2Q2002)

A. Any of the following used as a distance source document 1. Individual Vehicle Distance and Fuel Records (IDMRs) 2. Trip reports/envelopes 3. Driver Logs 4. Computer distance program printouts 5. Maintenance records, receiving contracts, bills of lading, dispatch reports, or payroll records, etc… (If any of the records listed in 1 – 4 are not available)

B. Monthly and/or quarterly summaries of all distance traveled in each jurisdiction

Fuel Records for the period 01/01/2002 through 12/31/2002 (1Q2002 – 4Q2002)

A. Retail (O.T.R.) Fuel Purchases:

1. Individual fuel receipts/invoices of retail purchases 2. Automated vendor generated invoice or transaction listing, such as Comdata, Fuelman, Etc. (If applicable

B. Bulk Fuel Records (If applicable)

1. Delivery tickets/Invoices of purchases for bulk storage 2. Withdrawal records/logs 3. Inventory reconciliations

C. Monthly and/or quarterly summaries of all fuel purchased or withdrawn in each jurisdiction by uni

Other Documents for the period 07/01/2001 through 12/31/2002 (3Q2001 – 4Q2002)

A. Copies of the IFTA tax returns and/or IRP registrations

B. Equipment listings and descriptions

C. Lease agreements (If applicable)

D. Trip or fuel permits (If applicable)

E. Bills of sale, invoices, or receipts documenting the sales, use and/or lease taxes paid on vehicles

MVA-34/01

Date Time Contact Comment10/1/2003 9:00 AM taxpayer Attempted to contact TP by telephone to schedule the audit - was

informed that the manager, Ms. Brockawitch, was on a "beer" break.

10/1/2003 10:00 AM Erin Brockawitch Ms. Brockawitch returned my call. A 11/17/2003 audit appointmentdate was scheduled at 9 AM at the TP's office in Buffalo. Mailedaudit engagement package to TP's office.

11/14/2003 9:00 AM taxpayer Attempted to contact taxpayer to confirm the audit appointment - leftmessage.

11/17/2003 10:00 AM taxpayer Attempted to contact TP by telephone to reschedule audit - leftmessage.

11/24/2003 2:00 PM taxpayer Mailed second notice to TP's office.

12/3/2003 10:00 AM taxpayer Attempted to contact TP by telephone - left message.

12/5/2003 1:00 PM taxpayer Mailed preliminary assessment to TP's office.

12/8/2003 11:00 AM Erin Brockawitch Ms. Brockawitch contacted me to reschedule the audit on 1/4/2004.

INTERNATIONAL FUEL TAX AGREEMENTINTERNATIONAL REGISTRATION PLAN

CONTACT LOGAnchor Transport, Inc.

EL -105/02

Reg.Unit No. Make Year GVW Owner-Operator Name Fuel Lease Date Refer Tank

501 VOLVO 2002 80,000 Sammy Adams D Jul-01 X502 PTRB 2001 80,000 Tim Goebel D May-00 X503 FRHT 1998 80,000 Carl S. Berg D Mar-01 X504 VOLVO 2001 80,000 Robert Coors D Oct-99 X505 FRHT 2000 80,000 William Falstaff D Jan-01 X506 VOLVO 1999 80,000 Johnny Miller D Dec-99 X507 FRHT 2001 80,000 Michael Lob D Jun-00 X508 PTRB 2000 80,000 Jimmy O'Doul D Apr-01 X509 WGMC 2002 80,000 Buddy Weiser D Sep-00 X510 VOLVO 1997 80,000 Gus Busch D Feb-01 X

INTERNATIONAL FUEL TAX AGREEMENTINTERNATIONAL REGISTRATION PLAN

CONTRACTOR EQUIPMENT LISTAnchor Transport, Inc.

Page 1 of 1

Erin BrockawitchAnchor Transport, Inc.

RE: IRP Account Number: NY 12345-001IFTA License Number: NY 12345678900

Dear Taxpayer:

On 10/01/2003 you were notified regarding the Department's intention to conduct anInternational Registration Plan (IRP) and/or International Fuel Tax Agreement (IFTA) audit on the above referenced account(s). As of the date of this letter, you have failed to respond to our request. Therefore, unless a response is received within ten (10) days from the date of this letter, it will be necessary to revoke yourIRP/IFTA license and impose an assessment of liability in accordance with IRP/IFTA provisions.

If you have any questions regarding this matter, please contact me at the above referenced telephone number.

Sincerely,


International Registration PlanInternational Fuel Tax Agreement

1 Marv Levy Blvd.Buffalo, NY 14203

Albany, NY 12345(518) 497-1234

Auditor@IFTA/IRP.com

January 28, 2004

1 Freedom Way