The IFTA requires records to be maintained for a period of four years from the due date of the IFTA tax return or the date the return was filed, whichever is later. The IRP requires that mileage records be kept for 4 1/2 years on each qualified motor vehicle. These records may be maintained on paper, microfilm/microfiche, digital imaging or other means of storage that have been approved, in writing, by the Colorado Department of Revenue.
*These records must be made available upon request by the department. While the IFTA and IRP recordkeeping requirements are similar, differences and minimal requirements for acceptable source documents are provided in the IFTA and IRP Recordkeeping and Audit Information document.
- Location of IRP Records
Your records should be maintained in Colorado. If your operational records are not located or made available in the state, requiring our auditors to travel to the location where they are kept, you may be required to pay reasonable daily expenses (such as meals and lodging), as well as travel expenses for the audit staff.
- Distance/Mileage Records
As a Colorado International Fuel Tax Association/ International Registration Plan (IFTA/IRP) licensee, you must maintain complete records of your qualified motor vehicles\' interstate and intrastate operations. The Individual Vehicle Distance Records (IVDR) form DR 0735 available on the taxation forms page is required by the IRP as an acceptable source document for recording vehicle distance information. Another acceptable source document is a trip report, provided it includes all of the following information:
You may also choose to use on-board recording devices to generate your distance records. Such device must meet the requirements outlined in IRP Audit Procedures Manual.The IVDRs provide the basis for the reported jurisdiction and fleet distance. The information recorded on the IVDRs must be accurate, complete, legible, and verifiable. If the jurisdiction and fleet distance cannot be accurately determined due to the absence or inadequacy of information on the IVDRs, the IFTA/IRP licensee may be required to reconstruct the records or provide additional documentation to substantiate the reported distance. Failure to maintain or provide the requested IVDRs for audit provides grounds for the assessment of 100% Colorado fees, plus applicable interest and penalties.The total miles reported on the IFTA fuel tax return must include taxable and tax-exempt mileage. Mileage that is exempt from taxation varies from jurisdiction to jurisdiction. Licensees can obtain exempt mileage information on the IFTA, Inc. Web site at www.iftach.org, or by contacting the individual jurisdictions.
- Vehicle designation (VIN or unit number of the power unit).
- Fleet number (IRP requirement only).
- Fuel type.
- Name (fuel filer and/or registrant).
- Driver name and/or signature (IRP requirement only).
- Starting and ending trip dates.
- Trip origin and destination.
- Travel route (list highways at jurisdictional borders)
- Jurisdiction (two-letter abbreviation).
- Mileage by jurisdiction (developed from odometer or hubodometer readings at each jurisdictional border).
- IFTA mileage designation (taxable and tax exempt).
- Beginning and ending odometer readings.
- International Fuel Tax Association (IFTA) Fuel Purchase Requirements
The International Fuel Tax Association (IFTA) licensee must maintain complete records of all fuel purchases. Separate totals must be compiled for each fuel type, by jurisdiction. Fuel types include diesel, gasoline, gasohol, liquefied petroleum gas (LPG), compressed natural gas (CNG), liquefied natural gas (LNG), alcohol fuels (ethanol, methanol, E-85 and M-85) and any other fuel you use to propel your vehicle. You must have adequate records to support the tax-
paid credit claimed on your quarterly IFTA fuel tax return. A receipt or invoice, credit card receipt, or microfilm/microfiche of the receipt or invoice must be retained in your records showing evidence of such purchases and tax having been paid. If tax-paid documentation is unavailable, all claims for tax-paid fuel will be disallowed.
The fuel records shall contain all of the following information:
- Date of each receipt of fuel.
- Name and address of the person selling the fuel.
- Number of gallons received.
- Type of fuel purchased.
- Vehicle or equipment into which the fuel was placed.
- Price per gallon or total gallons received (number of tax-paid gallons of fuel loaded in each jurisdiction).
- Purchaser's name. (In the case of a lessee/lessor agreement, receipts will be accepted in either name, provided a legal connection can be made to the reporting party).
Fuel receipts that do not meet the above requirements may be disallowed as tax-paid credits in an audit. Additionally, the department will not accept altered or erased receipts to support a claim of tax paid purchases.
- Bulk Fuel Storage
If you maintain a bulk fuel storage facility, you may obtain credit for tax paid on fuel withdrawn from that storage facility and used in your qualified motor vehicles, provided you maintain the following records:
- Date of withdrawal.
- Number of gallons.
- Fuel type.
- Unit number of the vehicle into which the fuel was placed.
- Purchase and inventory records to substantiate that tax was paid on all bulk purchases.
- Distance/Mileage Fuel Summaries
For audit purposes distance/mileage fuel summaries must be supported by source documents. From the information recorded on the IVDR (Individual Vehicle Distance Records), you must prepare and maintain a monthly summary to recap the total distance traveled by each apportioned power unit in each jurisdiction during the calendar month by fleet, by jurisdiction, and by equipment number. Form DR 0734 Monthly Fleet Mileage and Fuel Summary is available on the Web at the tax library.The monthly summary supports the quarterly and yearly summaries. The IRP requires summarization on a monthly and quarterly basis. The IFTA (International Fuel Tax Association) requires a monthly fleet summary for all qualified motor vehicles.Acceptable daily (IVDR) Individual Vehicle Distance Records and monthly fleet mileage and fuel summary documents reports are available on the Web at the tax library.
- Fuel Used For Exempt Purposes
Colorado allows a fuel tax exemption when the fuel is used for exempt purposes such as refrigeration units. IFTA (International Fuel Tax Association) carriers can apply for a refund of the Colorado fuel tax paid when the fuel is used for exempt purposes. To apply for a refund, contact the department for a fuel tax refund account (see FYI Excise 7 Tax Refunds for Exempt Use of Fuel).