Fuel tax reporting accuracy is the backbone of compliant IFTA filing for fleets operating across state lines. When mileage or fuel data is incomplete or inconsistent, reporting errors compound quickly. That leads to amended returns, penalties, and increased audit risk. In this webinar recap, we explain how bad data creates bad filings — and what fleets can do to correct issues before regulators step in.
If your vehicles cross state lines and are registered over 26,001 pounds, IFTA filing is required. That means your data must be complete, consistent, and defensible.
What IFTA Is and Why Accurate Reporting Matters
The International Fuel Tax Agreement (IFTA) ensures states receive fuel tax revenue based on where miles are driven. To file correctly, fleets must track:
- Mileage by jurisdiction
- Fuel purchases by state
- Odometer readings
- Vehicle identification details
If one piece of that puzzle is wrong, the entire filing may be questioned.
For a broader look at audit exposure, see:
What is a DOT Audit and Exactly What Triggers a DOT Audit?
Who Must Report Under IFTA?
Vehicles must report if they:
- Are registered at 26,001 pounds or more
- Travel across state lines
It is the registered weight that determines eligibility. A vehicle registered at 26,000 pounds does not require IFTA. One registered at 26,001 pounds does.
All miles driven in an IFTA-registered vehicle must be reported, including personal conveyance miles. Credits may apply later, but reporting remains mandatory.
Where Reporting Breaks Down
Most filing issues do not start at submission. They begin during data collection.
1. Mileage Tracking Gaps
Missing trip data skews state allocations.
Common causes include:
- ELD signal failures
- Poor cell coverage
- Manual paper logs
- Non-contiguous state reporting
If a truck shows miles in California and Texas without connecting states, something is wrong. Auditors identify those gaps quickly.
- Fuel Receipt Errors
Fuel data must align with mileage data.
Problems often occur when:
- Drivers use the wrong fuel card
- Unit numbers are entered incorrectly
- Bulk fuel is not reconciled
- Receipts are incomplete
If fuel appears in a state where the truck never traveled, the filing becomes difficult to defend.
For more insight on reducing manual errors, read:
The Cost of Staying Manual: How Automating IFTA Reporting with GW Connect Saves Time and Money
- Weak Internal Processes
Spreadsheets and disconnected systems increase the risk of:
- High or low MPG outliers
- Missing mileage
- Fuel assigned to the wrong vehicle
- Manual overrides
Manual review makes it easy to overlook inconsistencies. Automated anomaly detection improves oversight and consistency.
Why This Impacts Your Bottom Line
Incorrect filings lead to:
- Amended returns
- Interest and penalties
- Expanded audit scopes
- Increased administrative burden
If repeated errors are found, auditors may review up to four years of data. Strong documentation protects your fleet.
For related compliance practices, see:
Commercial Driver Onboarding: Why Doing the Minimum Isn’t Enough
What to Do If You Discover an Error
If you identify a filing mistake:
- Amend the return promptly
- Document why the correction was made
- Retain all supporting reports and receipts
Clear documentation reduces additional scrutiny and demonstrates good faith compliance.
How to Improve Data Accuracy
Improvement starts with structure and consistency.
Standardize Your System
Centralize mileage tracking, fuel reporting, renewals, and compliance documentation. Siloed systems create blind spots.
Monitor Key Reports
Run routine reports for:
- Miles by vehicle and jurisdiction
- Fuel by vehicle and jurisdiction
- MPG trends
- Quarter-over-quarter comparisons
Heavy vehicles should not show unrealistic fuel efficiency. Outliers signal data errors that should be reviewed before filing.
Prepare Before an Audit
Always maintain:
- Trip summaries
- Fuel receipts
- VIN and odometer logs
- Quarterly filing backups
Organized documentation reduces stress when regulators request records.
For additional operational insight, review:
Essential Skills for Successful Fleet Managers
When It’s Time to Upgrade Your Process
Consider upgrading your system if:
- Filing takes days instead of hours
- The same errors reappear each quarter
- Audit anxiety continues to rise
- Fleet growth has outpaced your processes
Modern compliance requires scalable tools.
Strengthen Your Process with DQM Connect
DQM Connect helps fleets by:
- Identifying state allocation anomalies
- Flagging high and low MPG
- Matching fuel purchases to miles
- Monitoring permit requirements
- Generating real-time IFTA-ready reports
Automation reduces manual entry and improves consistency across teams.
Ready to Take Control?
If your team spends more time correcting reports than filing them, it may be time for a better solution.
Contact DQM Connect today to schedule a demo and see how automated reporting tools can reduce audit risk and improve efficiency across your fleet.
Stay Safe, Stay Compliant and Keep Driving Success