PA Court Upholds IFTA Assessment
(March 7, 2018)
- The Pennsylvania Commonwealth Court has disallowed the appeal of a motor carrier’s assessment for additional fuel use tax – more than $300,000 – under the International Fuel Tax Agreement. In the absence of the records that IFTA requires a motor carrier to keep, the state, following an audit, had imposed a 4.0 miles-per-gallon factor on all the carrier’s operations, and made such other audit adjustments as were warranted by the best information available. To the taxpayer’s argument that it had in fact presented records, the court rejoined that the records the carrier had offered were so obviously inaccurate as to preclude any reliance. This finding is by no means novel, but it emphasizes how important it will be when a carrier faces an IFTA audit that its records be reasonably complete and accurate.