Hello good friends who are loyal readers of this prestigious magazine. I would like to warn you about Compliance Audits agencies are doing to truckers. The DMV, IFTA, and New Mexico are active on auditing truckers with the goal to increase revenue. The scope of the New Mexico Taxation and Revenue sent to one of my clients states:
Notice of Limited Scope Commencement-Weight Distance.
Dear Tax Payer: A review of information provided to the New Mexico Taxation and revenue Department by your base jurisdiction under section P-1040 of the International Fuel Tax Agreement (IFTA) Procedures Manual indicates that you, as a commercial carrier traveling in the State of NM may have traveled additional miles in NM tax year(s) 2012 and 2013. Our records reflect that NM miles reported OR not reported on your New Mexico Weight Distance tax return for tax year(s) 2012 and 2013 do not match the NM miles reported on the IFTA tax return to your base jurisdiction for the same year.
As a commercial carrier you may have recorded mileage in NM from the following:
• Travel passing through the state to a destination outside of New Mexico
• Travel into, out of, or within the state.
Please review the following information:
All miles traveled in NM are subject to the Weight Distance Tax except, except exempt miles.
If you disagree, you can provide necessary documentation to reconcile the Weight Distance tax discrepancy such as log books, trip reports, maps, or documents indicating entry/exit.
Due to technology, government agencies depending on truckers for revenue can exchange information to ensure the tax revenue is accurate. When renewing plates, match your IFTA, New Mexico, and Kansas reports. You cannot tell the DMV you travelled 6000 miles in NM so your plates cost less, then tell NM you travelled 600 miles.
If you get a Compliance Audit request, you must act immediately! Send me the request letter and I will see how you can minimize the tax liability. My fax is 909-390-1860; or email: firstname.lastname@example.org; and phone number: 909-390-3656. Remember, If you get a letter for an audit, don’t ignore it. It will not go away!