IFTA audits are becoming more aggressive, more common, and more expensive—especially for owner-operators and small fleets. Whether you're running solo across three states or managing a growing operation, your fuel tax reporting must be bulletproof. A single mismatch in miles, missing receipt, or outdated spreadsheet could cost you thousands in penalties. That’s where Hudson & Empire steps in. We help truckers stay audit-ready, file on time, and sleep well at night—because your business runs better when your books are clean.

When an IFTA Audit Turned into a $10,000 Wake-Up Call

Brad, an experienced owner-operator based in New York, was used to doing things the old-school way—fuel receipts, a calculator, and a decent memory. He never missed an IFTA filing. So when he received a $10,000 audit assessment letter from the state, he was blindsided.

Auditors claimed his reported miles and gallons didn’t align. Despite Brad’s best efforts, he was told to pay or defend the numbers—fast.

That’s when he called Hudson & Empire.

Our team stepped in, rebuilt the records, corrected the fuel splits, and handled the audit from start to finish.

End result?
✅ No taxes owed
✅ No penalties
✅ Audit cleared

Why IFTA Audits Catch Even the Most Diligent Truckers

The International Fuel Tax Agreement (IFTA) was meant to simplify fuel tax reporting across multiple states and provinces. But in reality, even minor errors can flag your return for audit. Many truckers who’ve “never had an issue” suddenly get hit with letters from the state demanding thousands in back taxes—and often don’t even know what triggered it.

Here’s where most problems begin:

Fuel Receipts Are Missing or Hard to Read
Auditors need clear, legible records with purchase date, location, and gallons. No receipt = no deduction.
Mileage Splits Don’t Match Actual Routes
Inaccurate jurisdictional mileage is a major red flag. Even software exports can be off without manual checks.
Generic Templates or Spreadsheets Are Incomplete
DIY records often leave out essential data—like odometer readings or vendor information.
ELD Reports Don’t Satisfy Auditor Requirements
States won’t accept raw GPS dumps without proper trip documentation.
Fuel-to-Mileage Ratios Don’t Make Sense
If your reported MPG is too high or low, expect a call from the state.

Hudson & Empire’s 3-Step IFTA Audit Shield

We’ve designed a done-for-you system that takes the pain out of fuel tax reporting and protects you from costly audits.

1. Snap & Submit – No More Shoebox Receipts

Upload your fuel receipts, BOLs, and trip logs through our mobile-friendly portal. We extract every required detail, including:

📍 Date, location, and vendor info
⛽ Gallons purchased and fuel type
🧾 Document type and reference number

This system eliminates manual entry, reduces human error, and ensures every document is backed up digitally.

2. Mileage & Fuel Reconciliation—Backed by AI

We calculate state-by-state mileage using route-verified software and audit-friendly logic. No more guessing your splits.

🔍 Verify odometer readings and trip-level accuracy
📊 Auto-generate your IFTA-101 spreadsheet
⚠️ Flag suspicious MPG gaps or data inconsistencies
🚦 Align logs with jurisdictional filing requirements

3. Quarterly IFTA Filing + Full Audit Defense

Once your data is clean, we file your return directly with the state each quarter. But we go beyond filing—we protect you from audits.

✅ Quarterly returns filed on time, every time
📂 All records organized and accessible for 4+ years
☎️ Audit handled 100% by our CPA and tax team—no stress, no guesswork

Real IFTA Audit Win: $18,000 to Just $600

In 2023, a fleet owner with six trucks was hit with an $18,000 IFTA audit assessment after the state claimed their fuel data didn’t match their mileage. Their software had missed key splits.

We stepped in immediately:

Rebuilt trip logs for four quarters
Verified all gallons purchased
Submitted a corrected and fully documented filing package

Final result:
✅ $0 in taxes
✅ $0 in penalties
✅ Just $600 in interest

That’s the power of working with Hudson & Empire.

Want to Handle IFTA Yourself? Follow These 6 Audit-Proof Tips

Not ready to outsource just yet? Here’s what our CPA team recommends to keep your filings clean and audit-ready:

Snap a Photo of Every Fuel Receipt Immediately
Paper fades. Photos don’t. Store copies in a secure cloud folder.
Log Trip-Level Start and End Odometer Readings
Don’t just report totals. Auditors want the specifics for each leg of your route.
Use Route Planning Tools to Confirm Mileage
Double-check with Google Maps or PC*MILER to avoid over- or under-reporting.
Keep All Records for At Least 4 Years
IFTA audits go back that far. Cloud backups are your friend.
Check Your MPG Range Every Quarter
Most trucks get 6–8 MPG. Reporting 12 or 4 is a guaranteed red flag.
Don’t Rely Solely on ELD Exports
Combine ELD logs with detailed, human-readable reports to satisfy auditors.

“Audits don’t care about effort—they care about accuracy. We make sure your numbers hold up.”
— Hudson & Empire CPA Team

Beyond IFTA: Hudson & Empire is Your Compliance Partner

We help truckers do more than just survive audits—we help them grow.

Our services include:

✅ IFTA filing and audit defense
✅ 2290 HVUT filing
✅ IRP renewals
✅ CA intrastate permits
✅ Quarterly estimated tax payments
✅ 1099s and year-end financial reports

We work with:

🚛 Solo owner-operators
🚚 Small and growing fleets
🚦 Hot shot and local haulers
❄️ Reefer carriers
🏗️ Construction and materials transporters

Book Your FREE IFTA Audit Risk Review

Whether you’re a year behind on filings or just got your first audit notice, we’ve got your back.

Connect with Hudson & Empire today and Get a no-strings 15-minute IFTA Health Check:

✅ Review past filings
✅ Spot compliance gaps
✅ Talk with a CPA who knows trucking

Stay compliant, avoid audits, keep your trucks moving. Partner with Hudson & Empire for stress-free IFTA compliance.

Don’t Let an IFTA Audit Derail Your Fleet: Hudson & Empire Keeps You Compliant