Audits are conducted by geographic area with each area generally being reviewed every three years. Audit periods vary but usually encompass the previous three years’ of tax filings. However, if there is no tax report filed for a reporting period, there is no statute of limitations. If the department is not satisfied with the tax report as filed or no tax report is filed, it may make a proposed assessment of additional taxes or fees due, and shall give the motor carrier written notice of such additional assessment. The department will also refund the amount of any overpayment to a motor carrier caused by an incorrect report.
If it is determined that additional taxes or fees are due, there are also additional late payment, penalty, and interest charges.
• Late Payment Charge: An additional 10% of the taxes or fees due.
• Penalty Charge:
1. If the additional assessment exceeds by at least 5% but not more than 15% of the taxes or fees due, a penalty of five percent will be added.
2. If the additional assessment exceeds by more than 15% of the taxes or fees due, a penalty of 20 percent will be added.
3. If the tax report is not filed, a penalty of 25% of the taxes or fees due will be added.
• Interest Charge: Every additional assessment shall bear interest at the rate of one percent per month, or fraction of a month, until paid.
An audit assessment becomes due and payable when it becomes final. (If an audit assessment is included in a bankruptcy, the assessment is only payable as permitted by bankruptcy law.) If the audit assessment is not paid when due, an additional penalty in the amount of 10% of the tax assessment is added. Oregon Revised Statute 825
.496 International Registration Plan (IRP)
The Motor Carrier Audit Section is responsible for checking that Oregon-based carriers are in compliance with International Registration Plan (IRP) requirements related to their operations in other states and provinces. Through the IRP, motor carriers (registrants) can register through their base jurisdiction for all the states and provinces in which they operate. Oregon currently helps more than 4,000 of its carriers by collecting registration fees, which are based on the total distance traveled, and distributing the fees to the other jurisdictions. The motor carrier deals only with the base jurisdiction.
The IRP requires an average of three percent of the base jurisdictions’ registrants be audited each year. The base jurisdiction may audit more than three percent if it is deemed appropriate. Audits may cover the current registration year plus three previous registration years. International Fuel Tax Agreement (IFTA)
The Motor Carrier Audit Section is also responsible for checking that Oregon-based carriers are in compliance with International Fuel Tax Agreement (IFTA) requirements related to their operations in other states and provinces. More than 4,000 Oregon carriers are currently licensed to operate in other states and provinces on fuel tax licenses. Through IFTA, they pay Oregon for all the fuel taxes owed to those jurisdictions and Oregon then distributes the taxes on their behalf. Auditors check that carriers accurately report the miles traveled and fuel purchased in all jurisdictions in order to verify or reconcile the fuel taxes owed for those operations. Oregon does not collect a fuel tax on heavy vehicles; it assesses a weight-mile tax for trucks operating over 26,000 pounds. Thus, Oregon participates in IFTA as a service to Oregon-based carriers operating outside the state.
The IFTA requires an average of three percent of the base jurisdictions’ licensees be audited each year. The base jurisdiction may audit more than three percent if it is deemed appropriate. Additionally, at least 25% of the base jurisdiction’s high mileage licensees and at least 15% of the base jurisdiction’s low mileage licensees must be audited each year.
____________ Oregon Revised Statutes 825
.490, 825.494, 825.496 Oregon Administrative Rules 740-200
-0010, 740-200-0040 IFTA
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