and on July 30, 2003 the Department issued a Notice of Proposed Liability that resulted
in a net fuel tax reduction, no penalty, and interest that was calculated from January 1,
1999 through July 31, 2003.
The taxpayer has not challenged the Department’s tax or
interest calculations, but has filed a protest concerning the interest that accrued between
the conclusion of the first audit and the second audit. The taxpayer refers to this as the
“interim interest” and asks that it be abated because it would not have accrued if the
Department had made the proper calculations at the close of the first audit. The parties
have filed Motions for Summary Judgment, stipulations, and briefs in support of their
motions. After reviewing the documents submitted by the parties, it is recommended that
this matter be resolved in favor of the Department.
FINDINGS OF FACT:
The taxpayer is an authorized for-hire interstate motor carrier based in
Anywhere, Illinois. (Stip. #8b)
2. The taxpayer owns and/or leases commercial motor vehicles, which are based
in Illinois. The taxpayer operates the commercial vehicles in Illinois and other IFTA-
member jurisdictions. (Stip. #9, 13)
3. The State of Illinois imposes a motor fuel tax on fuel consumed by interstate
commercial motor vehicles, and it participates in IFTA. (Stip. #10, 11)
4. The State of Illinois was and is an IFTA member jurisdiction and is subject to
its Articles of Agreement. (Stip. #4)
Although the second audit resulted in a net tax reduction, the taxpayer had overpaid its liability for some
jurisdictions and underpaid its liability for others. Under IFTA, the interest is calculated separately for
each jurisdiction. This resulted in an interest assessment for each jurisdiction for which the taxpayer
underpaid its liability.
Due to a typographical error, the stipulations are numbered incorrectly. After the paragraph numbered 7,
there is another paragraph 5 and 6 and no paragraph 8. The “second” 5 and 6 paragraphs will be referred to
as 8a and 8b.