General Information Sheet:

Transcription

1 General Information Sheet: Please complete all information in BLUE. Check all information in RED to verify correctness. Taxpayer: Change any incorrect information. DBA: DBA Name If you are not doing three audit periods, Business Address: 1 Marv Levy Blvd. Buffalo, NY enter "N/A" in the year slots for the extra periods. Mailing Address: 1 Marv Levy Blvd. Buffalo, NY Change the N to a Y for Full AL Fee or Deny Credits Taxpayer Telephone Num: (000) if applicable (N = No, Y = Yes). Contact/Representative: Erin Brockawitch Contact Telephone Num: (518) IFTA License No: NY Audit Period: 01/01/2002 through 12/31/2002 IRP Account No: NY Audit Period: 01/01/2003 through 12/31/2004 Renewal Month: 12 Appointment Date: 11/17/2003 Appointment Location: taxpayer's office at 9:00 AM. Delivery Date: 01/29/2004 Interest End Date: 01/29/2004 (Change to 30 days from the Delivery Date if mailing or not collecting payment) IRP Audit Period 1: 2004 Period: 01/01/2003 through 12/31/2004 Full AL Fee (Y/N)? N Mileage Year: 07/01/2001 through 06/30/2002 Deny Credits (Y/N)? N Interest Begin Date: 01/01/2003 (1st Day of Month following registration month) IRP Audit Period 2: 2003 Period: 02/01/2002 through 01/31/2003 Full AL Fee (Y/N)? N Mileage Year: 07/01/2000 through 06/30/2001 Deny Credits (Y/N)? N Interest Begin Date: 03/01/2002 (1st Day of Month following registration month) IRP Audit Period 3: 2002 Period: 02/01/2001 through 01/31/2002 Full AL Fee (Y/N)? N Mileage Year: 07/01/1999 through 06/30/2000 Deny Credits (Y/N)? N Interest Begin Date: 03/01/2001 (1st Day of Month following registration month) COMMENTS: Auditor Name: IFTA/IRP Auditor Auditor Address: 1 Freedom Way Albany, NY Telephone Num: (518) Auditor@IFTA/IRP.com

2 International Fuel Tax Agreement International Registration Plan Audit Program MVA-2 Taxpayer: IFTA License No: NY IRP Account No: NY 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 Audit Procedure Comments WP Ref. Date I. 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) Page 1 of 5

3 Time Audit Procedure Comments WP Ref. Date 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 6. Agreement Extending Period of Limitation For Assessment or Refund (if applicable) 7. Power of Attorney and Declaration of Representative (if applicable) 8. distance and/or fuel records (desk audit) MVA-2 E. Other Information/Comments Section Hours 0.00 II. Opening Conference and Internal Control Evaluation The 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

4 Time Audit Procedure Comments WP Ref. Date III. Field Work The 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 MVA-2 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

5 Time Audit Procedure Comments WP Ref. Date IV. Completion of Audit The purpose of the summary work (completion of audit) is to finalize the audit for issuance of the notices of deficiency determination. MVA-2 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) 15. Agreement Extending Period of Limitation For Assessment or Refund (if applicable) 16. Power of Attorney and Declaration of Representative (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 D. Other Information/Comments Section Hours 0.00 V. Post-Audit Conference The 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

6 Time Audit Procedure Comments WP Ref. Date 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) MVA-2 D. Other Information/Comments 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

7 International Fuel Tax Agreement International Registration Plan Pre-Audit Questionnaire MVA-5 This questionnaire is designed to assist in determining the timing and extent of the audit field work. Please complete and return to: IFTA/IRP Auditor 1 Freedom Way Albany, NY (518) Auditor@IFTA/IRP.com Please review the following information and make corrections if necessary. IRP Account No.: NY IFTA License No.: NY Company Name: Business Address: Mailing Address: 1 Marv Levy Blvd. Buffalo, NY Marv Levy Blvd. Buffalo, NY 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? Thirty days or longer? 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. Page 1 of 4

8 MVA-5 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

9 MVA-5 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

10 MVA-5 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: 07/01/2001 through 06/30/2002 IFTA: 01/01/2002 through 12/31/ ) 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 Telephone number: (518) Audit Contact (If different): Title: Telephone number: Page 4 of 4

11 International Fuel Tax Agreement International Registration Plan 1 Freedom Way Albany, NY (518) Auditor@IFTA/IRP.com October 1, 2003 Erin Brockawitch 1 Marv Levy Blvd. Buffalo, NY RE: IRP Account Number: NY IFTA Account Number: NY Dear Taxpayer: The State of New York, as a member of the International Registration Plan (IRP) and the International Fuel Tax Agreement (IFTA), is required to conduct periodic audits of New York based carriers. The above referenced account(s) has been selected for audit for the following audit period(s) IFTA: 01/01/2002 through 12/31/2002 IRP: 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. Addition pertinent records/information may also be requested during the audit. Audit period(s) may be expanded during th audit to a full statute period for IFTA and/or IRP. A review of sales, use and/or lease taxes paid on vehicles wi also be conducted, if necessary Please complete and return the enclosed Pre-Audit Questionnaire prior to the scheduled audit date. A New Yor Taxpayer's Bill of Rights pamphlet is also enclosed for your review. Should you have any questions, I encourag you to contact me at the above referenced telephone number Sincerely, IFTA/IRP Auditor 1 Freedom Way Albany, NY (518) Auditor@IFTA/IRP.com 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

12 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 period07/01/2001 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

13 MVA-3 4/01 INTERNATIONAL FUEL TAX AGREEMENT INTERNATIONAL REGISTRATION PLAN CONTACT LOG Date Time Contact Comment 10/1/2003 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/ :00 AM Erin Brockawitch Ms. Brockawitch returned my call. A 11/17/2003 audit appointment date was scheduled at 9 AM at the TP's office in Buffalo. Mailed audit engagement package to TP's office. 11/14/2003 9:00 AM taxpayer Attempted to contact taxpayer to confirm the audit appointment - left message. 11/17/ :00 AM taxpayer Attempted to contact TP by telephone to reschedule audit - left message. 11/24/2003 2:00 PM taxpayer Mailed second notice to TP's office. 12/3/ :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/ :00 AM Erin Brockawitch Ms. Brockawitch contacted me to reschedule the audit on 1/4/2004.

14 EL -1 INTERNATIONAL FUEL TAX AGREEMENT INTERNATIONAL REGISTRATION PLAN CONTRACTOR EQUIPMENT LIST Reg. Unit No. Make Year GVW Owner-Operator Name Fuel Lease Date Refer Tank 501 VOLVO ,000 Sammy Adams D Jul-01 X 502 PTRB ,000 Tim Goebel D May-00 X 503 FRHT ,000 Carl S. Berg D Mar-01 X 504 VOLVO ,000 Robert Coors D Oct-99 X 505 FRHT ,000 William Falstaff D Jan-01 X 506 VOLVO ,000 Johnny Miller D Dec-99 X 507 FRHT ,000 Michael Lob D Jun-00 X 508 PTRB ,000 Jimmy O'Doul D Apr-01 X 509 WGMC ,000 Buddy Weiser D Sep-00 X 510 VOLVO ,000 Gus Busch D Feb-01 X Page 1 of 1

15 International Fuel Tax Agreement International Registration Plan 1 Freedom Way Albany, NY (518) Auditor@IFTA/IRP.com January 28, 2004 Erin Brockawitch 1 Marv Levy Blvd. Buffalo, NY RE: IRP Account Number: NY IFTA License Number: NY Dear Taxpayer: On 10/01/2003 you were notified regarding the Department's intention to conduct an International 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 your IRP/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, IFTA/IRP Auditor 1 Freedom Way Albany, NY (518) Auditor@IFTA/IRP.com

16