Illinois Administrative Code › Title 86 - REVENUE › Part 500 - MOTOR FUEL TAX › Subpart C - MOTOR FUEL USE TAX › Section 500.360 - Audits

Current through Register Vol. 48, No. 28, July 12, 2024
a) The purpose of
				an audit is to verify fuel and mileage data reported on the quarterly tax
				return. Any licensee may be selected for audit.
b) Prior to conducting an audit, the auditor
				will contact the licensee to arrange a date to commence the audit. At that
				time, the auditor will outline the time period to be audited and the records to
				be reviewed. A confirmation letter will be sent to confirm date and time. For
				just cause (e.g., to ensure the validity of the audit), the notification
				requirement may be waived. At the beginning of the audit, the auditor will
				determine background information, reporting methods and records that will be
				reviewed. As the audit progresses, the auditor and licensee will discuss the
				sample periods, sampling techniques, and any problem areas. A final conference
				will be held with the licensee to explain audit adjustments and future
				reporting practices. Any audit adjustment will be reflected on an amended
				return covering the period of the audit. Payment of the liability, if any, will
				be requested. If the licensee does not agree, an audit assessment will be
				issued.
c) Audit guidelines. Audits
				will be completed using the best information available. In the absence of
				adequate records, a standard of four miles per gallon will be used. Tax-paid
				fuel entries will be disallowed if tax-paid fuel documentation is unavailable.
				All reasonable attempts will be made to verify reported miles.
d) If a licensee fails to make records
				available upon proper request or if any licensee fails to maintain records from
				which the licensee's true liability may be determined, the Department may, 30
				days after requesting in writing that the records be made available or
				receiving notification of the insufficient records, determine the licensee's
				tax liability. The determination shall be made from information previously
				furnished by the licensee, if available, as well as any other pertinent
				information which is available to the Department.
e) In the event that an IFTA licensee's
				records are not located in Illinois and the Department must send auditors to
				the place the records are kept, the Department may require the licensee to
				reimburse it for reasonable per diem and travel expenses of its auditors, as
				authorized by law.
f) IFTA
				Licensees - Additional Audit Requirements. The Department will audit its IFTA
				licensees on behalf of all member jurisdictions and shall submit audit reports
				to all other member jurisdictions. In addition, the following additional
				requirements shall apply to IFTA licensee audits:
1) A member jurisdiction may re-examine a
				base jurisdiction's audit findings if the member jurisdiction reviews the audit
				work papers and, within 45 days after receipt of the audit findings by the
				member jurisdiction, notifies the Department of any errors found during such
				review and of its intention to conduct the re-examination. Such re-examination
				by a member jurisdiction must be based exclusively on the audit sample period
				utilized by the Department in conducting its audit.
2) A member jurisdiction may reaudit a
				licensee if said member jurisdiction notifies the base jurisdiction and the
				licensee of reasonable cause for the re-audit.
3) The re-audit or re-examination by a member
				jurisdiction must be performed in cooperation with the base jurisdiction. An
				adjustment to original audit findings as a result of such re-audit or
				re-examination must be reconciled with the original audit findings issued by
				the Department. New audit findings shall be issued by the Department. A member
				jurisdiction conducting a re-audit or re-examination shall pay its own
				expenses.