OLIN 2007 x96 12 Compliance and IRP Audits for Vehicle Registration Services
Compliance and IRP Audits for Vehicle Registration ServicesPDF Version
International Registration Plan (IRP) audits found significant under-reporting of fleet miles by vehicle registration services. The under-reporting resulted in additional billings, interest and penalties for the IRP accounts that did not pay the appropriate fees due.
Common audit findings
IRP audit discrepancies revealed common areas of violations and non-compliance with the IRP agreement and California Vehicle Code (CVC) requirements involving vehicle registration services.
The following significant errors were found:
- The registration service accepted, or failed to verify information submitted to the Department of Motor Vehicles (DMV) and, thereby, knowingly or negligently engaged in fraudulent practices.
- Estimated mileage was being submitted for more than the allowed first year of operation.
- Accurate and complete operational records were not maintained or provided to support the reported mileage and vehicle information for the required four registration years.
- Unapproved IRP forms were submitted to the DMV.
A vehicle registration service is required to have knowledge of and comply with all applicable statutory and regulatory requirements. The DMV may take administrative action to suspend, revoke, or cancel the vehicle registration service’s license for failure to adhere to any applicable statutory and/or regulatory requirement.
To assist with compliance, the resources listed below are available to registration services online via the following links:
The California Department of Motor Vehicles Web page
Registration Service Program Handbook and other licensure information
California Vehicle Code
IRP Handbook and Memos (IRP forms are in the handbook)
Handbook of Registration Procedures
Dismantler’s Handbook of Registration Procedures
Agent’s Handbook for Registration of Undocumented Vessels
Occupational Licensing Memos
Vehicle Industry News (VIN Memos)
California Code Of Regulations, Title 13
Many IRP registrants use vehicle registration services licensed in California to process their apportioned registration applications.
The IRP is an apportioned registration program that allows payment of license fees based on the total distance vehicles are operated in two or more member jurisdictions. The base jurisdiction calculates and collects the license fees due for all member jurisdictions in which the registrant’s fleet or vehicle(s) are operated.
Periodic audits are conducted of IRP registrant fleet records to ensure the accuracy and integrity of information reported, compliance with the IRP agreement, and proper payment of fees to all applicable jurisdictions.
Notification that this memo is available online at dmv.ca.gov/pubs/olin/olin.htm was made via E-Mail Alert in December 2007 to Vehicle Registration Services.
For further clarification regarding IRP audits, call the IRP information line at (916) 657-7971. For all other registration questions or general inquiries please call 1-800-777-0133 during normal business hours.
MARY GARCIA, Chief