Using Your ELD for IFTA Reporting? | Aladdin

Read This Before You Trust That "IFTA Report" Button

Using your ELD for IFTA reporting? There's something most carriers get wrong.

Nearly every ELD company markets this: "Built-in IFTA reporting. Automatic state mileage breakdown. IFTA made simple."

It sounds good. But here is what actually matters:

IFTA doesn't require your ELD to be convenient. It requires your records to be adequate, sufficient, and appropriate for audit. And when an auditor shows up, the burden of proof is entirely on you.

Here's what that actually means, and what responsible carriers do to make sure they're covered.

IFTA Record Keeping Requirements: What You Actually Need

IFTA requires carriers to keep operational records for four years from when the return was due or filed, whichever comes later.

Those records need to be detailed and sufficient enough for an auditor to verify:

• Total distance traveled
• Distance traveled in each jurisdiction
• Total fuel placed into qualified motor vehicles
• Accuracy of your distance and fuel accounting systems

If your records can't be easily pulled and reviewed in an audit, they don't count. Having the data isn't enough. You have to be able to produce it in a usable format.

ELD IFTA Mileage: What Is Required When Using Electronic Vehicle Tracking

If you use an ELD or vehicle tracking system to support IFTA mileage, the system must create and maintain a record at least every 10 minutes while the vehicle's engine is on.

Each record must include:

• The date and time of each system reading
• Latitude and longitude, with a minimum of four decimal places
• Odometer reading from the engine control module (or beginning and ending dashboard or hub odometer if ECM is unavailable)
• The vehicle identification number or unit number

The data must be accessible in an electronic spreadsheet format such as XLS, XLSX, CSV, or a delimited text file.

Static image formats such as PDF, JPEG, PNG, or Word documents are not acceptable as vehicle tracking system records.

If your system cannot produce that level of detail, you may not have adequate records.

What Happens If Your Records Are Inadequate

If the base jurisdiction determines your records do not meet adequacy standards, or you fail to produce records when requested, additional assessments may be imposed.

Those assessments can include:

• Reducing your fleet MPG to 4.00
• Reducing your average fuel consumption factor by 20 percent
• Increasing jurisdictional distance by 20 percent in certain cases

That adjustment can be significant.

And it is based on record adequacy, not intent.

The Part Many Carriers Miss

Your ELD provider does not have to store your data forever. You do.

If your system limits how far back you can access detailed trip records, you must routinely download and retain those records while they are available. Waiting until you receive an audit notice is too late.

What Responsible Carriers Do

1. Pull detailed trip history regularly.
2. Store it in more than one location.
3. Maintain:
   1. Trip-level distance records
   2. Jurisdictional breakdowns
   3. Odometer data
   4. Fuel receipts and supporting documentation
   5. Monthly summaries that support quarterly filings

Systems, vendors, and platforms all change. Your obligation to produce four years of defensible records does not.

The Bottom Line

An ELD can assist with IFTA reporting, but it does not replace your responsibility to maintain adequate records.

Before you rely on that "IFTA Report" button, ask yourself:

• Can I produce trip-level records from two years ago?
• Do I have 10-minute interval location data?
• Can I export it in spreadsheet format?
• Have I downloaded and preserved it?

Convenience is not compliance. Documentation is.

For official requirements and governing documents, visit the International Fuel Tax Association: https://www.iftach.org