1. Managed by the International Fuel Tax Association, Inc.

3. Consensus Board Interpretations Dispute Resolution Program Compliance Reviews Enforcement IFTA, Inc. Clearinghouse Managed by the International Fuel Tax Association, Inc.

4. A process through which provisions of the IFTA governing documents may be interpreted and commentary added to the affected provisions Managed by the International Fuel Tax Association, Inc.

5. A jurisdiction, committee or Board member requests an interpretation The Board may issue a proposed interpretation A proposed interpretation must be ratified by ¾ affirmative vote of the membership at an Annual Business Meeting If ratified, commentary is added to the affected IFTA governing document Managed by the International Fuel Tax Association, Inc.

6. The process by which the member jurisdictions and IFTA licensees have confidence that compliance issues regarding the IFTA governing documents are being addressed in a consistent and an efficient manner. Managed by the International Fuel Tax Association, Inc.

7. To provide a forum for jurisdictions to resolve compliance issues among themselves To provide a forum for a carrier to resolve a compliance issue with a jurisdiction  A dispute by a carrier cannot be filed if an administrative remedy in the jurisdiction exists or if the dispute involves substantive jurisdiction law (including the imposition, assessment or collection of tax) Managed by the International Fuel Tax Association, Inc.

8. Legend of Acronyms: PCRT – Program Compliance Review Team PCRC – Program Compliance Review Committee PD – Program Director PCA – Program Compliance Administrator CHAIR – Program Compliance Review Committee Chair VICE CHAIR – Program Compliance Review Committee Vice Chair NPM – PCRC Members Not Serving on the Review Panel Program Compliance Review - Flowchart of Procedures Managed by the International Fuel Tax Association, Inc.

9. BOX 1 PCRT VISITS JURISDICTION AND COMPLETES COMPLIANCE REVIEW PD REVIEWS FINDINGS WITH JURISDICTION PCA RECEIVES COMMENTS FROM JURISDICTION PCA PREPARES DRAFT REPORT DRAFT REPORT SENT TO PD DRAFT REPORT SENT TO PCRC BOX 2 PCRC PANEL OF 3 REVIEWS DRAFT REPORT: 1)NOTES AREAS OF COMPLIANCE 2)DETERMINES AREAS FOR FOLLOW-UP 3)DETERMINES AREAS FOR REASSESSMENT IN COMPLIANCE END PROCESS YES NO AREAS FOR FOLLOW-UP YES NO BOX 3 PD ACTS END PROCESS A B Managed by the International Fuel Tax Association, Inc.

10. BOX 4 REASSESSMENT AREAS REVIEWED BY CHAIR AND VICE CHAIR A REASSESSMENT TO CONTINUE? B YES NO BOX 5 NPM AND PD DEVELOPS REASSESSMENT PLAN AND TIMELINE BOX 6 PD PRESENTS PLAN AND TIMELINE TO JURISDICTION PD WITH CHAIR’S OK CAN MODIFY PLAN OR TAKE STEPS TO REASSESS BOX 7 PD PREPARES REASSESSMENT REPORT BOX 8 REASSESSMENT REPORT REVIEWED BY FULL PCRC IN COMPLIANCE PD ISSUES FINAL REPORT CHANGE REASSESSMENT PLAN AND/OR TIMELINE YES NO BOX 9 RETURN TO PD FOR COMMUNI- CATION WITH JURISDICTION C NO YES Managed by the International Fuel Tax Association, Inc.

11. C BOX 10 FIND JURISDICTION OUT OF COMPLIANCE IF COMMITTEE FINDS JURISDICTION OUT OF COMPLIANCE; THEN REASSESSMENT REPORT W/ OUT OF COMPLIANCE ISSUES IS SENT TO PROPOSED DISPUTE RESOLUTION COMMITTEE JURISDICION CAN APPEAL TO BOARD OF DIRECTORS Managed by the International Fuel Tax Association, Inc.

12. Jurisdictions exchange quarterly a listing of new and cancelled accounts Jurisdictions exchange, at least every 10 days, the following:  Listing of suspended licenses  Listing of revoked licenses  Listing of reinstated licenses Managed by the International Fuel Tax Association, Inc.

13. Administrative  To ensure that a carrier in a revoked license in one jurisdiction does not receive a license from another Roadside  To ensure that a carrier in a revoked, suspended, or cancelled status is not continuing operations Managed by the International Fuel Tax Association, Inc.

14. Credentials A jurisdiction issues one license to the carrier  The carrier must copy the license and place a copy in each qualified motor vehicle A Jurisdiction issues two decals to the carrier for each qualified motor vehicle  The carrier must display a decal on each side (driver and passenger) of each qualified motor vehicle Managed by the International Fuel Tax Association, Inc.

15. IFTA Temporary Decal Permit  This permit may be carried ONLY in place of the decals  Valid for only 30 days  Vehicle specific (VIN must be included)  It’s main purpose is to allow a carrier to add a qualified motor vehicle immediately – places a copy of the license in the vehicle and the jurisdiction faxes the temporary permit until permanent decals reach the carrier Managed by the International Fuel Tax Association, Inc.

16. Trip Permit  A jurisdiction may issue a trip permit to a carrier  This trip permit is in lieu of an IFTA license  Most jurisdiction trip permits are limited by time (i.e. days, hours, etc.)  This is NOT an IFTA trip permit – it allows the carrier to travel through the jurisdiction that issued it and no other  A trip permit has to be obtained for each jurisdiction separately Managed by the International Fuel Tax Association, Inc.

17. If a carrier is operating on a suspended or revoked license, this indicates that the carrier is not complying with the terms of IFTA  Including failure to file tax returns, failure to pay a tax return, failure to pay an audit assessment If a carrier is operating on a cancelled license, the carrier has indicated to the jurisdiction that he or she is no longer operating  Stopping the carrier from operating in your jurisdiction stops the carrier from operating in all jurisdictions – payment by this carrier pays your taxes too Managed by the International Fuel Tax Association, Inc.

18. 50 Member Jurisdictions Paperless Transmittals Paperless Interjurisdictional Audit Reports Paperless Taxpayer Status Updates Law Enforcement Tool CVISN (level 1) Requirement Managed by the International Fuel Tax Association, Inc.

19. The Clearinghouse Advisory Committee was formed in early 2004. First task tackled by the Committee was to recommend standard procedures for paperless transmittals. As of May 2004, requirements were given to Jurisdictions to go paperless. Audit Reports may be posted to the Clearinghouse, to eventually eliminate the need to send paper Audit Reports. Managed by the International Fuel Tax Association, Inc.

20. One beneficial aspect of the Clearinghouse is Paperless Transmittals. Once a Jurisdiction meets the requirements laid out by the Committee it will be able to halt sending paper transmittal reports to those Jurisdictions currently in the Clearinghouse. Managed by the International Fuel Tax Association, Inc.

22. The IFTA Clearinghouse provides for the electronic exchange of fuel information and reconciliation of tax among the member jurisdictions. Transfers funds electronically between member jurisdictions. In 2010 over $328 million was transferred through the Funds Netting accounts. Ensures timely and accurate exchange of tax information. Reduces errors. Provides a safe environment, with appropriate back up and data recovery. Managed by the International Fuel Tax Association, Inc.

23. Only one EFT or check payment to be made verses up to 57 Billings are paid timely No more lost payments or payments duplicated Managed by the International Fuel Tax Association, Inc.

24. The IFTA, Inc. Clearinghouse uses JP Morgan Chase as the mechanism for payments to and from other Jurisdictions based on Transmittal Information. The totals derived for funds netting are collected exclusively from the Summary Totals file uploaded to the Clearinghouse. The total that a jurisdiction will owe or receive will be based on a netting process for all participating jurisdictions. The final net amount will be one final total you will be owed or have to fund to your EFT banking accounts. Participating jurisdictions will have to follow their normal procedures for paying non-participating jurisdictions. All participating members of the IFTA, Inc. Clearinghouse will be required to participate in Funds Netting. Managed by the International Fuel Tax Association, Inc.

25. The IFTA Funds Netting Processing will take place 12 times a year, once per month. The IFTA, Inc. Clearinghouse numbers the processing 1 through 12 for the given year. IFTA Funds Netting Processing:  Upload your data  View, correct and Re-load data as needed  Funds netted  EFT accounts funded by the Jurisdictions who owe  Jurisdictions receive funds through EFT accordingly Managed by the International Fuel Tax Association, Inc.