International Fuel Tax Agreement (IFTA) and International Registration Plan (IRP) jurisdictions are mandated to file fuel tax returns and perform a certain percentage of field audits for motor carriers based within their jurisdictions. They continue to strive for ways to improve efficiency and accuracy while reducing tax processing and audit time and costs. Also, with overlapping IFTA and IRP audits, the potential to leverage the field-collected distance data exists, but has proven to be elusive for most audit systems. Many home-grown solutions are difficult to manage, rely on too few key resources or on technical resources that do not understand the nature of IFTA and IRP. Furthermore, these solutions lack modern, industry-standard design, and provide a less than desirable presentation of the audit findings. Agencies are looking for a comprehensive tax processing or audit package with the ability to file returns and perform multi-fleet IRP and IFTA audits, which maximizes the reuse of collected data, and is commercially available and maintained by a capable software vendor.
RSI offers a range of products and services from the fully integrated tax, collections, audit, compliance portfolio warehouse and decision analytics solution components of its Revenue Premier® Commercial-Off-The-Shelf (COTS) product suite, to a full range of business consulting services. Each solution component of Revenue Premier focuses on integration with the data necessary for achieving breakthrough efficiency gains and increased revenue generation.
Revenue Premier was built specifically for the Tax and Revenue industry using best-practice techniques gained over 25 years of client experience. RSI is one of the largest organizations of its kind dedicated exclusively to tax administration, which includes support of Option 1 for remittance of IFTA audit revenue (P1060.100, A690.600) and Motor Fuel Tax processing. The Integrated Tax Processor provides out-of-the-box functionality for all core processing functions within the agency. It consists of the following core components: Taxpayer Portal, Channel Management, Entity Identification, Tax Processing, Taxpayer Accounting and Revenue Accounting. The Integrated Tax Processor operates on an open platform, which provides an agency with the flexibility to integrate with existing technology investments (e.g., content management and correspondence generation solutions) and/or other Revenue Premier modules.
A few highlights of Revenue Premier’s IFTA and IRP processing capabilities:
- Designed IFTA-100 Quarterly Return for imaging and optimal data capture.
- Pre-populated printed quarterly IFTA-100 returns with taxpayer demographic and tax rate codes for each jurisdiction based on a taxpayer’s prior returns filed. Options for web-filing and bulk-file acceptance via channel can be entertained.
- Scanning and processing of IFTA Decal and License Applications Issuance and Annual Renewals.
- Processing all of quarterly IFTA returns alongside returns for other miscellaneous tax types into Revenue Premier.
- Full maintenance of IFTA demographics, accounts, jurisdiction contacts, decal and license attributes.
- Implementation of six standard external interfaces:
- IFTA Inc. Clearinghouse – Fuel Rates (inbound/outbound)
- IFTA Inc. Clearinghouse – Demographics (outbound)
- IFTA Inc. Clearinghouse – Combined Funds Netting Transmittal (outbound)
- IFTA Inc. Clearinghouse – Summary Transmittal (outbound)
- Federal Motor Carrier Safety Administration Commercial Vehicle Information System and Networks (CVISN) – Safety and Fitness Electronic Records (SAFER)
- IRP Demographics (outbound)
- Implementation of essential operational reports:
- IFTA Accounts Receivable
- IFTA Annual Complete IFTA Field Audits
- IFTA Audit Stratification
- IFTA Account Snapshot
- IFTA Jurisdiction Annual Report
Depending on an agency’s needs, the Revenue Premier modules can be scaled appropriately for functionality and/or end user volumes (e.g., web-based submission channel vs. a full back-end tax processing solution).
The Taxpayer Portal as mentioned previously is one of the components of the Integrated Tax Processor, however can be implemented separately. Some of the core functions of the taxpayer portal which can be used for taxpayers or Agency users to process and manage Motor Fuel taxes include business registration, return filing, calculators and table access, tax account management, payment processing, compliance initiatives, security, electronic communication and service requests.
IFTA/IRP Audit Workpapers Package
The Revenue Premier Workpapers Toolkit component with the IFTA/IRP Motor Carrier audit package provide a single, streamlined solution for auditors to effectively and efficiently conduct audits of IFTA and IRP in parallel, leveraging the shared data between both audit components. Extensive reporting capabilities allow auditors, supervisors and taxpayers to review a professional, consistent and comprehensive presentation of the audit results. RSI also provides consulting services and best practices ranging from Business Process Re-engineering / Improvement (BPR/BPI) to system and process enhancements, all directed towards providing agencies with a significant increase in tax processing and audit efficiency.
RSI’s solution is packed with time-saving features and capabilities to allow the auditor to easily tackle even the most complex of audits. It supports a myriad of sampling methodologies, including fleet-stratified projections, flexible sample and target-period grouping, and isolation of selected audit errors. For vehicles that fall under both IFTA and IRP agreements, mileage and routing data is automatically shared, thus eliminating the need to enter redundant data. The Workpapers Toolkit also provides:
- Fleet and/or sample period stratification of error rates and projections
- Ability to isolate audited differences by trip leg, fuel receipt or whole jurisdiction
- Automatic outlier detection
- Easy collaboration feature which allows multiple auditors to capture detail data for the same audit
- Interface/Import of IFTA return and IRP application data
- Independent projections of Total vs. Jurisdictional distance and fuel with balancing
- Integration with popular mapping software (e.g., PC*Miler, ProMiles)
- Easy resolution of Gap miles
- Quick MPG analysis with ability to easily impute fuel
- Bulk fuel storage gain/loss computations
- Import of data (e.g., vehicles/fleet information, fuel, summaries, GPS data) from licensee/taxpayer
- Simple export to Excel
- A completely standalone solution – doesn’t require additional application software or server connectivity
- An extensive collection of audit findings reports, with fast, simple generation (and re-generation) of the complete audit report stack
Additional Audit Workpapers Features
In addition to the IFTA/IRP specific features and functions, Workpapers Toolkit provides integrated correspondence and document generation with auto-population of data from the audit package (e.g., demographics, audit data, etc.) for both communication with the taxpayer and for completing the audit narrative and other agency-internal documents. Workpapers Toolkit also provides an innovative SinglePDF function, allowing auditors to generate a single, fully bookmarked PDF of the entire audit’s contents – inclusive of letters, workpapers, the audit narrative and the complete audit findings report.
RSI’s COTS IFTA/IRP tax processing and auditing solution offers the opportunity to quickly deploy a working baseline product to agency users, auditors and managers for immediate hands-on experience with the package. RSI’s solution includes a dedicated solution support center, continuous evolution of the product based on input from clients and industry, and a reliable, trusted partner in RSI.
- Revenue Premier is a true COTS solution
- Rapid deployment cycle
- Dedicated RSI Solution Support Center
- Continued product evolution and product maintenance
- Improved efficiency
- Faster data capture
- Seamless integration with other technological components
- Integrated, visual map integration for verification of trips/routing
- Multi-auditor collaboration
- Cross-audit sharing of distance data (IFTA/IRP)
- Clear, consistent methodology
- Compliant with IFTA/IRP audit procedural requirements and reporting
- Simplified review process for auditor, supervisor and taxpayer/licensee
- Clean, comprehensive presentation of the audit findings
RSI is devoted to working with agencies to address the complexities of processing Motor Fuels tax returns, maintaining IFTA reporting compliance, while also conducting IFTA, IRP and all other types of audits to provide agencies with measurable efficiency gains. RSI has the means to achieve this through intelligent use and re-use of data, enhanced collaboration among tax and audit staff, faster data capture, and a clear, consistent methodology for adhering to IFTA and IRP audit standards. In addition, the extensive reporting capabilities of the Revenue Premier solution offer a flexible, but consistent, presentation of audit results, easing review of the audit for both agencies and the taxpayers they audit. RSI’s IFTA/IRP Audit Workpapers Package is the best COTS solution available today, and the integrated tax system and compliance solutions have been in use across the country for over 15 years. All Revenue Premier products are continuing to evolve alongside the changing landscape and challenges related to conducting IFTA and IRP audits.
Please contact Brian Ridderbush at 1-888-826-1324 ext. 400, or via email at BRidderbush@RSImail.com, for additional information.