Top IFTA and IRP Filing Mistakes Motor Carriers Must Avoid in 2026

For motor carriers operating across multiple jurisdictions, compliance with the International Fuel Tax Agreement (IFTA) and the International Registration Plan (IRP) is non‑negotiable. These programs streamline fuel tax reporting and apportioned vehicle registration, but even small filing or recordkeeping mistakes can trigger audits, penalties, or even suspended credentials. Below are the most common pitfalls carriers face, along with practical ways to avoid them.

Inaccurate distance tracking

Accurate mileage reporting is the foundation of both IFTA and IRP compliance. Auditors often compare reported miles with GPS data, fuel records, and routing software. When numbers don’t align, they may apply a low default miles‑per‑gallon factor or disallow mileage altogether, raising a carrier’s tax bill.

Errors usually stem from:

• Forgetting to record state line crossings;
• Relying on estimates instead of actual odometer or GPS readings;
• Failing to include deadhead, bobtail, or personal miles; or
• Not documenting detours or reroutes.

To prevent discrepancies:

• Use reliable electronic logging devices (ELDs) or telematics tools that automatically track mileage by jurisdiction,
• Train drivers to report odometer readings consistently at the start and end of each trip, and
• Reconcile mileage reports monthly rather than waiting until the end of a quarter.

Fuel receipt issues

Fuel receipts are essential for documenting tax-paid gallons. Missing, damaged, or incomplete receipts can jeopardize your ability to claim credits, resulting in higher tax liabilities. A valid receipt must include purchase date, seller details, number of gallons, price per gallon, total sale amount, unit number, and fuel type.

Lightly printed or smeared receipts are a problem; auditors may reject them if they are unreadable. Digital storage helps mitigate this issue, as scanning or photographing receipts at the time of purchase preserves legibility and prevents loss.

Late or incorrect filings

Deadlines for quarterly IFTA returns and annual or periodic IRP updates are enforced strictly. Late filings can result in penalties. Chronic lateness may escalate to interest charges, audits, or even credential suspension.

Similarly, incorrect filings — whether due to math errors, missing mileage, or unreported trips — can draw unwanted attention from regulators. Many states now use automated cross‑checking tools that quickly detect inconsistencies between jurisdictional records.

Avoid these issues by treating IFTA and IRP reporting as ongoing responsibilities:

• Conduct periodic internal audits,
• Reconcile mileage and fuel data monthly, and
• Mark filing deadlines on a shared compliance calendar.

Multiple accounts

Some carriers inadvertently maintain multiple IFTA or IRP accounts across jurisdictions, often due to mergers or administrative oversights. While not prohibited, having multiple active accounts significantly increases audit exposure. These programs are designed so carriers can work through a single base jurisdiction; multiple accounts undermine that simplicity and raise risk.

When possible, consolidate accounts and establish consistent recordkeeping procedures across the organization.

Disorganized/incomplete records

One of the biggest red flags during an audit is incomplete or inaccessible records. Both IFTA and IRP require fleets to maintain detailed data, including mileage by jurisdiction, odometer readings, routes traveled, and fuel receipts. Missing, illegible, or inconsistent documentation can lead auditors to recalculate tax liability, often not in a carrier’s favor.

In addition to illegible fuel receipts, common issues include:

• Mismatches between receipts and trip reports,
• Gaps in mileage, and
• Inconsistent miles per gallon across units.

These discrepancies can result in higher assessed taxes or disallowed credits.

To avoid compliance headaches:

• Adopt clear, organization‑wide recordkeeping policies.
• Ensure drivers understand how to properly log trip details and fuel purchases, whether paper or digital systems are used.
• Verify that ELDs retain data long enough. Many purge information after six months, which may not meet IFTA/IRP retention requirements.

The bottom line

Staying compliant with IFTA and IRP doesn’t have to be overwhelming. With organized records, accurate mileage tracking, timely filings, and well‑trained drivers, carriers can avoid costly mistakes and ensure smooth operations across state lines. Let proactive practices — not audits — drive your compliance strategy forward.

With J. J. Keller DataSense Legalization & Advisory Services, our experts handle your vehicle registrations, permits, and compliance requirements so your fleet stays legal and road‑ready. We take care of the details, allowing you to stay focused on your operation. Learn how we can support your fleet.