IFTA Revocations, Suspensions, and Cancellations:

IFTA Revocations, Suspensions, and

Cancellations:

Jurisdictional Survey Results and Discussion

Cindy Arnold (NV)David Bujno (NH)

Ghyslaine Lepage (QC)

What We DidWhat We Did

Sent out an eight question survey instrument to all IFTA commissioners, utilizing a “yes/no” response format that also allowed for open ended comments

Received back 32 surveys (52% response rate)

Entered, collated, and mapped responses

Format Outline for Each QuestionFormat Outline for Each QuestionPresent the original survey questionPresent a color coded map with responding

jurisdictions (“Yes” = Red, “No” = Green); one can see at a glance how neighboring jurisdictions responded

Group jurisdictions by Yes and No responsesPresent open ended responses (NOTE: we

suggest you follow along the open ended responses in the handout.)

Question 1Question 1

My jurisdiction cancels a license at the request of a licensee: (circle one) Yes No

If you answered “No”, please explain below.

NL

MB

PE BC

NT

YT

QC ON SK

AB

NB NS

#1: Do you cancel a license at the request of a licensee?Y (32)

List of jurisdictions that answered “YES” to Question 1:

AB, AL, BC, CO, FL, ID, IA, KY, LA, MA, MD, ME, MN, MO, MS, NB, NV, NH, NM, NC, ND, OH, OK, OR, PE, QC, SC, VT, WA, WI, WV, WY

Question 1: Do you cancel a license at the request of a licensee?

Jurisdiction Y/N Comment

BC YIf account is in good standing (all o/s returns filed, no outstanding account debt).

FL Y If the account is in “good standing”

LA Y After ensuring all motor fuels taxes have been paid.

MD Y

For the following codes: current year report, prior year report, correspondence, decal/license returned, decal application/renewal

MO YAs long as licensee has no outstanding tax return for that license year and/or an outstanding debt.

OH Y Request must be in writing.

WV Y

Provided that all current year decals are returned. If decals are retained by the licensee, we require tax returns to be filed and operations (or lack of) be reported for the duration of the license/ decal year.


My jurisdiction cancels a license on my jurisdiction’s initiative: (circle one) Yes No

If you answered “Yes”, please explain below your jurisdiction’s reason(s) for canceling. If you answered “No”, please explain.

NL

MB

PE BC

NT

YT

QC ON

SK

AB

NB NS

#2: My jurisdiction cancels a license on my jurisdiction’s initiative?Y (22) N (10)


AB, AL, BC, CO, FL, IA, KY, MD, ME, MN, MS, NV, NM, NC, OH, OK, OR, QC, WA, WI, WV, WY

List of jurisdictions that answered “NO” to Question 2:

ID, LA, MA, MO, NB, NH, ND, PE, SC, VT

Question 2: My jurisdiction cancels a license on my jurisdiction’s initiative?


AB Y

It happens infrequently, but an example would be to correct a Tax and Revenue Administration administrative error (such as a company that was set up under the wrong Business Identification Number ).

AL Y

All previous year accounts are cancelled if the taxpayer has not submitted a renewal request by the end of March each year. Accounts with four consecutive quarters of no operations or our jurisdiction-only miles will be cancelled.

BC YWhen license period has expired (e.g., at the expiry of 2008 license, the 2008 license will be cancelled unless renewal is received.)

CO YWhen a carrier has no activity, or base jurisdiction miles only, or fails to renew

FL YIf they report 3 or more quarters of 'base jurisdiction only' or 'No Operation' we require at least one Trip Permit to re-open the account.

IA Y If carrier does not purchase current year decals

KY YNon-payment of taxes, failure to file, non-renewal of annual application, no operations reported over a period of two (2) years

MD Y

For the following codes: field office / walk-in error, per taxpayer services, per auditing, per registration section, failure to renew, per administration, no base jurisdiction miles / no operations.

ME YIf licensee does not renew account, it is cancelled as long as all returns have been filed and there is no outstanding debt.

Question 2: My jurisdiction cancels a license on my jurisdiction’s initiative? (continued)


MN YLicensee goes out of business or status changes that fuel is filed by another company

MS YIf the licensee has not renewed for an additional year his account is closed. An incomplete account is placed in a closed pending status.

NC Y If taxpayer fails to renew for the following year

NM Y

If licensee has outstanding liability over 90 days past due, account automatically canceled for failure to pay. Assessment letter issued, then billing letter at 45 days, finally cancellation letter at day 90 of non-compliance.

NV Y Close account if it was opened in error

OH Y

If a licensee does not report travel out of our jurisdiction for 4-5 consecutive quarters, we send a letter requesting that the licensee respond with reason the account is needed. If no response is received the account may be cancelled or an audit will be performed to help determine the need for the IFTA account.

OK Y If license was issued in error

OR Y

Licensee does not renew IFTA license and has not provided notification that will not be renewing for the following year- more of an 'account closure'

QC Y

Yes if they have not renewed their licensee, there is an automatic cancellation at the beginning of March. We will then get a list of all the cancelled accounts with delinquency and amount due and we will work on it in order to get the reports; amounts due are taking care of by our perception department.

Question 2: My jurisdiction cancels a license on my jurisdiction’s initiative? (continued)


WA Y If we are eliminating a certain tax type

WI Y Failure to renew by the end of the year.

WV Y

In a case where a sole-owner incorporates and opens a separate IFTA account, obtaining license/ decals for the corporation. We may close the existing account and cancel the license, in preference to the newer licensed account.

WY Y

Situationally dependent. Ex: carrier reports zero miles or only base jurisdictional miles for 5 quarters, will cancel license / notify licensee.

MA NLicensee is considered active until: 1) decals expire at year's end, or 2) licensee returns decals and asks to be canceled

NB N

As a general rule, a licence is cancelled only when it can be confirmed with the licencee that the account is no longer active; the only exception is when a licencee cannot be contacted after the licence expires, the account will be cancelled, provided that there are no outstanding returns and/or liabilities.

SC NWe can due to no activity on the account providing no liabilities are outstanding.

VT NCan suspend them. Licensee won't get decals for following year if not in good standing


My jurisdiction suspends a license for failure to comply with applicable provisions of the IFTA agreement:

(circle one) Yes NoIf you answered “No”, please explain.

NL

MB

PE BC

NT

YT

QC ON SK

AB

NB NS

#3: My jurisdiction suspends a license for failure to comply with applicable provisions of the IFTA agreement?

Y (12) N (20)


BC, IA, KY, MA, ME, MN, MO, NV, NH, SC, VT, WV


AB, AL, CO, FL, ID, LA, MD, MS, NB, NM, NC, ND, OH, OK, OR, PE, QC, WA, WI, WY

Question 3: My jurisdiction suspends a license for failure to comply with applicable provisions of the IFTA agreement?


NH Y For good cause

MD N

We do not recognize the distinction between suspensions versus revocation, in part because of the definition in R260:specifically the terminology "temporary removal".

NB Y

Any registrant failing to comply with the terms of the IFTA is revoked. In order to become reinstated under IFTA, the carrier must reapply and meet all licensing conditions.

OR Y Revokes instead


My jurisdiction revokes a license for failure to comply with applicable provisions of the IFTA agreement: (circle one) Yes NoIf you answered “Yes”, please explain below your jurisdiction’s reason(s) for revoking.

If you answered “No”, please explain below.

NS NB

AB

SK ON QC

YT

NT

BC PE

MB

NL

#4: My jurisdiction revokes a license for failure to comply with applicable provisions of the IFTA agreement?

Y (26) N (6)


AB, AL, BC, CO, ID, KY, LA, MA, MD, MN, MS, NB, NV, NM, NC, ND, OH, OK, OR, PE, QC, SC, WA, WI, WV, WY


FL, IA, ME, MO, NH, VT

Question 4: My jurisdiction revokes a license for failure to comply with applicable provisions of the IFTA agreement?


AB Y If carrier is non-compliant in filing and/or delinquent in payments of taxes, interest and penalties.

AL Y Law provides that an IFTA license may be revoked for outstanding liabilities, delinquent quarterly fuel tax returns, or the revocation of the licensee’s International Registration Plan (IRP) license.

BC Y If outstanding return(s) not filed and tax due is paid within month following start of suspension period

CO Y When a carrier fails to file IFTA returns or pay assessments

ID Y Revoke for cause: noncompliance with IFTA, nor reporting, not remitting taxes, constant late reporting or remitting of taxes

KY Y Non-payment of taxes, failure to file, non-renewal of annual application, no operations reported over a period of two (2) years

LA Y If licensee fails to file quarterly returns or owes unpaid taxes

MA Y Delinquent returns; outstanding balances/bills

MD Y For the following codes - failure to: file report, remit tax due, pay/protest field audit assessment, pay/protest other assessment, renew IFTA registration, comply with record keeping requirements, post bond, provide complete application information, pay child support; dishonored check – reports; undeliverable correspondence; unable to process report; revoked in another jurisdiction; providing false or fraudulent information on application or reports.

Question 4: My jurisdiction revokes a license for failure to comply with applicable provisions of the IFTA agreement? (continued)


MN Y Failure to: file IFTA tax return, pay tax liability, or provide records for audit. Prior IFTA revocation in another jurisdiction

MS Y Failure to file a return or pay.

NB Y Failure to: make a return, remit the gasoline and motive fuel tax, maintain records as required, comply with the provisions of the Act and Regulations.

NC Y If there is a delinquency or outstanding liability

ND Y Failure to file quarterly, pay quarterly billing, and NSF.

NM Y Failure to file tax returns; non-filer letter sent at 45 days after period due date, then revocation letter sent at day 90 of non-compliance.

NV Y Only after licensee's given the right to a hearing. Rarely revoke, usually use suspension

OH Y For failure to file timely returns or complete, accurate returns, and assessment balances that are not paid within 60 days. We send a past due notice/return 45 days after each due date (if we have not received the return for the quarter) and then if we still have not received the return within 35 days after the past due notice/return, we revoke the account.



OK Y If licensee has not complied with IFTA provisions

OR Y Non-payment; non-filing of return

QC Y Failure to pay the licensee fees (50$ plus 10$ for each set of decals)=NSF cheque. Quarterly report not produced, (delinquency is mostly taking care of with the renewal). More recently when there is an amount still due (they want to close, they produce their missing returns with an NSF payment!)

SC Y For failure to: remit all taxes due, or pay or protest an audit assessment within the established time period. Pending Tax Returns (returns with errors).

WA Y Failure to submit tax returns, money owing or non-compliance

WV Y Failure to file, pay, retain accurate and complete records, make records available, respond to written requests for information; falsified application for license and decals; prior revocation in another jurisdiction; transfers or sells/receives or purchases decals from anyone other than the DMV

WY Y Licensee who fails to file return / pay billing notice within allowed time is automatically revoked until account cleared up.



ME N Will only revoke an account for very serious infractions, which would include more than the failure to comply with applicable provisions of the IFTA agreement.

MO N No longer use the revocation code. Since implementation of our web-based system, we have a common customer status of non-compliant. The IFTA fleet level status will remain suspended.

NH N Revocation would suspend plates; current policy is not to revoke

PE N A suspension suggests that it is for a specific time period. We revoke until the carrier complies.

VT N Operating privileges are suspended.


My jurisdiction both suspends and revokes licenses: (circle one) Yes No

If you answered “Yes”, please explain below the difference between revoking and suspending an IFTA license. If you answered “No”, please explain below.

NS NB

AB

SK ON

QC

YT

NT

BC PE

MB

NL

#5: My jurisdiction both suspends and revokes licenses?Y (7) N (25)


BC, KY, MA, MN, NV, SC, WV


AB, AL, CO, FL, ID, IA, LA, MD, ME, MO, MS, NB, NH, NM, NC, ND, OH, OK, OR, PE, QC, VT, WA, WI, WY

Question 5: My jurisdiction both suspends and revokes licenses?


BC Y Licenses are first suspended and the carrier provided a month to file the outstanding return(s) and pay any tax due. If, at end of month, the carrier has not become compliant, license is revoked.

KY Y Suspension occurs first, when a carrier files to comply for a given reason. After a period of forty-five (45) days our system will update the account status to indicate a revocation.

MA Y Revoke: used when the decals have not expire, and there are balances due or delinquent returns. Suspend: used when decals have expired, and there are balances due or delinquent returns.

MN Y Suspension is the due process time for the licensee to correct the noncompliance deficiency

NV Y Use suspension for non-payments, delinquent returns. Revocation only used after licensee given the right to a hearing.

PE Y If the carrier does not comply, they are not reinstated.

SC Y We send out an OFFICIAL ORDER OF SUSPENSION LETTER with an effective date. If the carrier does not resolve the matter after that date his account is REVOKED

WI Y Failure to pay taxes due, failure to file tax returns, bad checks, audits.

Question 5: My jurisdiction both suspends and revokes licenses? (continued)


WV Y "Suspension" is used to prevent additional decals or renewal of decals during the time allotted for a taxpayer to respond to one of the causes for revocation. For instance, when a licensee has a bad filing history and has failed to file a 3rd quarter report, we might suspend the account to prevent the renewal even though the estimated bill is not yet at a stage where we would revoke. However, we do not "temporarily suspend or remove license privileges" as defined by the agreement.

FL N We suspend the account until all money owed is paid. No further activity is allowed on either their IFTA or IRP account until the suspension is cleared. We feel that revocation provides less control of the account in our system.

MO N Based on the definition we are not withdrawing (revoking) the license privileges - we are only temporarily removing (suspending) the license privilege.

OK N For annual reporting purposes, any license revoked and subsequently reinstated during the same license year is annotated as suspended. It is really the number reinstated.

QC N We cannot suspend, our system is built to accept only the code for cancellation (inactive), revoke (revoke) and reinstate (active)

The IFTA definition of Cancellation is as follows: R215 Cancellation means the termination of a license by the licensing jurisdiction pursuant to Section R410.

[NOTE: The process of IFTA license cancellation is governed by R410 LICENSE CANCELLATION, in particular R410.100: “A base jurisdiction may, at the request of a licensee or on its own initiative, cancel a license if the licensee has complied with all applicable provisions of this Agreement, including the satisfaction of all motor fuel use tax obligations for the license period. The base jurisdiction shall instruct its licensees that, upon cancellation, the original IFTA license, all license copies, and all decals shall be destroyed.”]

My jurisdiction feels the definition of Cancellation should be changed: (circle one)Yes NoIf you answered “Yes”, please explain below how the definition should be changed


NL

MB

PE BC

NT

YT

QC ON

SK

AB

NB NS

#6: My jurisdiction feels the definition of Cancellation should be changed?Y (4) N (28)


ID, MO, OK, QC


AB, AL, BC, CO, FL, IA, KY, LA, MA, MD, ME, MN, MS, NB, NV, NH, NM, NC, ND, OH, OR, PE, SC, VT, WA, WI, WV, WY

Question 6: My jurisdiction feels the definition of Cancellation should be changed?


QC Y If we cancel (carrier status will be: inactive) because of a non renewal, than we are not in compliance with this definition if the carrier still has unproduced returns. Of course we will assure the follow up until the returns are produced or we will issue estimated returns in order to get the real figures from the cancelled carrier. But the status will be ‘inactive’ for that carrier automatically. If we cancel at the request of the carrier, we will change the status to “inactive” but will make sure that we have all the returns (phone call or letter); if money is due , our perception department will take care of that.

NV N Follow the rules of cancellation but the terminology the vendor uses is "closed"

Question 7Question 7The IFTA definition of Suspension is as follows:

R260 Suspension means temporary removal of privileges granted to the licensee by the licensing jurisdiction.

[NOTE: The process of IFTA license suspension is governed by R420 LICENSE SUSPENSION AND REVOCATION, in particular R420.100: “Failure to comply with all applicable provisions of this Agreement shall be grounds for suspension or revocation of the license issued under this Agreement.”]

My jurisdiction feels the definition of Suspension should be changed: (circle one)Yes NoIf you answered “Yes”, please explain below how the definition should be changed

NL

MB

PE BC

NT

YT

QC ON

SK

AB

NB NS

#7: My jurisdiction feels the definition of Suspension should be changed?Y (2) N (30)


MS, QC


AB, AL, BC, CO, FL, ID, IA, KY, LA, MA, MD, ME, MN, MO, NB, NV, NH, NM, NC, ND, OH, OK, OR, PE, SC, VT, WA, WI, WV, WY

Question 7: My jurisdiction feels the definition of Suspension should be changed?


ID N The suspension option should be eliminated. However, if some jurisdictions have this in current law, the existing definition is adequate.

MD N R420 should be changed, “de-linking” suspension and revocation and provide further clarification and/or distinction(s) between the two.

MS Y Feel that suspension should be removed and only use canceled (closed) or revoked

QC Y we never suspend, the definition says: suspension or revocation, should we have two different definitions if some jurisdictions are using both?

Question 8Question 8The IFTA definition of Revocation is as follows:

R257 Revocation means withdrawal of license and privileges by the licensing jurisdiction.

[NOTE: The process of IFTA license revocation is governed by R420 LICENSE SUSPENSION AND REVOCATION, in particular R420.100: “Failure to comply with all applicable provisions of this Agreement shall be grounds for suspension or revocation of the license issued under this Agreement.”]

My jurisdiction feels the definition of Revocation should be changed: (circle one)Yes NoIf you answered “Yes”, please explain below how the definition should be changed

NL

MB

PE BC

NT

YT

QC ON

SK

AB

NB NS

#8: My jurisdiction feels the definition of Revocation should be changed?Y (4) N (28)


ID, ME, NH, QC


AB, AL, BC, CO, FL, IA, KY, LA, MA, MD, MN, MO, MS, NB, NV, NM, NC, ND, OH, OK, OR, PE, SC, VT, WA, WI, WV, WY

Question 8: My jurisdiction feels the definition of Revocation should be changed?


ME Y Jurisdiction's opinion is that revocation is the permanent removal of license and privileges.

ID Y Change to: LICENSE SUSPENSION AND REVOCATION "Failure to comply with all applicable provisions of this Agreement shall be grounds for suspension or revocation of the license issued under this Agreement." Separate the revocation and suspension provisions of the Agreement.

NH Y Difference between suspension and revocation should be defined; jurisdictions should be using same terminology

QC Y Maybe just change R420.100 to remove “Suspension” and put it in a separate definition.

Other CommentsOther Comments

Respondents were instructed to utilize additional space to answer any question or to make additional comments.

Related to Question 6: My jurisdiction feels the definition of Cancellation should be changed?

Jurisdiction Comment

WY How do you enforce this? Licensee may return decals but have copy; enforcement may not physically look for decal, would not know if license is not good.

Other comments on various topics:


AL Providing examples for each definition may help clarify any questions.

BC Suspension/revocation process is as follows:One (1) month after the due date of a return, a warning letter is provided to a non-compliant carrier (if the carrier has a ‘good’ filing history during the previous 4 quarters – see 4th bullet)).If the carrier remains non-compliant for the following month, its carrier license is suspended.If the carrier remains non-compliant for an additional month, its carrier license is revoked and an estimated assessment made.A carrier may be re-instated when it again becomes compliant.If the carrier has received a warning notice or been suspended or revoked in the previous 4 quarters, the carrier does not receive a warning notice for a subsequent late, but rather is suspended one month after the due date of a non-filed return. For example, a Q1 return is due April 30; on May 31 a warning notice is issued; on June 30, the non-compliant carrier can be suspended, and on July 31 the carrier can be revoked and an estimated assessment made. If the carrier had received a warning notice or been suspended or revoked for the previous Q1, Q2, Q3, or Q4, the suspension and revocation would occur one month earlier (no warning would be issued); suspension on May 31, and revocation on June 30.

Other comments on various topics (continued):


MO Since implementation of our new web based system in September 2005, we have a program fleet level status and a common customer status. The program fleet level status updates the common customer status to non-compliant but leaves the program status on the program fleet level. Sixty days after the tax return deadline, we run a suspension job. This job updates the IFTA fleet status to suspended. Our suspension job updates the IFTA fleet level for failure to file or failure to pay in full. Once the common customer status is set to non-compliant, the customer can no longer receive oversize/overweight permits, and IRP and Operating Authority/UCR transactions will not be processed until the customer files or pays in full.

NM Respondent uses terms “cancel” and “revoke” not only to comply with IFTA procedures, but to identify: which state the carrier is in, and reason for the flag.

OK Oklahoma does not treat Suspensions and Revocations differently. Any licensee who fails to comply within the Agreement is revoked. In order to be reinstated the account must be brought current by paying any taxes, penalties and interest which may be due. Also a $100.00 reinstatement fee is charged.

NV I believe that the Jurisdictions are using suspension and revocation inter changeably. IFTA needs to better define these terms through ballots.

Other comments on various topics continued):


WV Our use of the license suspension is not the same as the IFTA definition. For us, suspended is essentially a "pending revoked" status, where revocation will follow in a short time if a carrier fails to provide the required response. It has been used due to the computer system used for IFTA processing and compliance. During this pending revocation state, carriers cannot obtain additional decals or renew existing decals. However, because carriers DO continue to operate regardless of their license status, we continue to provide tax returns to carriers until the license period is over. Decals remain valid during the suspension, but no additional or renewals are allowed. Revocation will follow if adequate response is not received. The use of a 'suspended' status in our IFTA processing system would literally suspend all processes and tax returns would not continue to be sent to those carriers.

DISCUSSIONDISCUSSION

QuestionsCommentsOther

IFTA Revocations, Suspensions, and Cancellations:

Documents

Transcript of IFTA Revocations, Suspensions, and Cancellations: