Category: File Fuel Tax IFTA

You Asked, We Answered: 6 Popular IFTA Questions

Posted on April 19, 2017 by - File Fuel Tax IFTA, IFTA, ifta deadline, IFTA fuel Tax filing, IFTA Information, ifta report, IFTA return, International Fuel Tax Agreement, Truck Tax, truckers, trucking

Any time when taxes are involved things can get confusing. You have to when deadlines are, what materials are required to file, how to file, and more. With the 3rd quarter IFTA deadline quickly approaching on October 31st, we, the truck tax experts at ExpressTruckTax, decided to take it upon ourselves to be your resource guide, by answering common IFTA questions.

Popular IFTA Questions

When is IFTA Due?

IFTA is actually due four times a year, which is why your IFTA report is commonly referred to as your ‘quarterly IFTA report’. The IFTA deadlines are as follows:

1st Quarter – April 30th
2nd Quarter – July 31st
3rd Quarter – October 31st
4th Quarter – January 31st

It just so happens that this year the 1st quarter IFTA deadline falls on a weekend, Sunday, April 30th,  and when IFTA deadlines are on a weekend or federal holiday they’re pushed back to the next business day.

2. What exactly is IFTA?

IFTA is the International Fuel Tax Agreement and it is an agreement with the 48 contiguous states in the US and 10 Canadian provinces that’s designed to simplify the fuel use reporting for qualifying motor carriers that operate in more than one jurisdiction (state).

Now you may be wondering what a qualifying motor vehicle is, so we will clear that up. A qualify motor vehicle is vehicle or combination of vehicles that are designed, used, or maintained for the transportation of property of people that have two axles and a gross vehicle weight over 26,000 pounds, two axles and a registered weight exceeding 26,000 pounds, three or more axles regardless of weight, or a combination weight exceeding 26,000 pounds.

3. I rarely travel outside of my jurisdiction, do I need an IFTA license?

You don’t necessarily need an IFTA permit, but you will need a temporary fuel permit, which allows qualifying vehicles without IFTA credentials to temporarily travel in their intended state. To get your temporary permit contact a DMV in the state you will be traveling in. You will need to provide them with information such as your VIN, vehicle model, and more.

Each state has their own temporary trip permit regulations. Some offer temporary permits with varying prices and lengths of time, so you may purchase the one the best suits your travel needs.

4. How do I prove that I Filed my IFTA Report?

You will receive a copy of your IFTA license on an annual basis as long as you file your quarterly reports. Keep a copy of your license in your office and in your qualifying vehicles at all times.

Also, you will have two IFTA decals to display on your truck. It’s best to keep them clearly displayed under the window on your driver door.

When you travel without your IFTA license or decals, you will be subject to receiving a fine and you may have to purchase a temporary permit, or both.

5. What Happens if my IFTA Return is Late?

If your IFTA Return is late, or you fail to file, your base jurisdiction may give you a penalty of $50 or 10% of the taxes owed, depending on which is greater. Also, your base jurisdiction reserves the right to impose additional penalties based on their laws.

Plus, your base jurisdiction will assess the amount of unpaid taxes you owe to each jurisdiction and interest will accrue on that amount at a rate of 1% per month.

6. What do I Need to Complete my IFTA Report?

You will need the following information to complete your IFTA return:

The total miles taxable and nontaxable, traveled by all the licensee’s qualified motor vehicles per jurisdiction. This includes IFTA and non-IFTA miles, and trip permit miles.

The total gallons of fuel consumed by the licensee’s qualified motor vehicles per jurisdiction, including taxable and nontaxable, IFTA, and non-IFTA.

The taxable gallons used and purchased per jurisdiction.

And the current tax rate per jurisdiction.

Do You Have More Questions?

Well then ask us! We’re IFTA experts, and we’re here to help. Feel free to contact our dedicated support team with any questions that you may have. We’re available Monday – Friday from 9 AM to 6 PM EST at 704.234.6005. We’re also available via live chat and offer 24/7 email support at support@expresstrucktax.com

IFTA (International Fuel Tax Agreement) Information

Posted on October 10, 2011 by - 2290 efile, 2290 form, Authorized Efile provider for form 2290, express truck tax, Expresstrucktax.com, File Fuel Tax IFTA, Fuel Tax, IFTA, IFTA online filing, Internal Revenue Service Form 2290

Owners of qualified heavy highway motor vehicles that operate in at least 2 out of the 58 total jurisdictions must file IFTA on a quarterly basis. The abbreviation: “IFTA” is short for International Fuel Tax Agreement, which represents a tax collection agreement among the 48 contiguous United States and its 10 bordering Canadian Provinces.
Qualifying Highway Motor Vehicles
Any vehicle is considered to be a qualified motor vehicle if it is used, designed, or maintained for the purpose of transportation of persons or property and has a registered gross vehicle weight of more than 26,000 pounds. Also, any vehicle with 3 axles or more is considered to be a qualified motor vehicle regardless of weight. Finally, if the combined weight of all of its parts is greater than 26,000 pounds, it is also considered to be a qualified motor vehicle.
IFTA Process
Each state or province has a different rate and those rates can change each quarter. The state or province in which the vehicle is registered is considered to be its Base Jurisdiction. IFTA must be filed with the vehicle’s respective jurisdiction each quarter. Every driver must keep a trip log of how many miles are traveled in each state or province, as well as how much fuel was purchased in each state or province. This information can be kept on what are commonly referred to as trip sheets, or trip logs.
Reasons for IFTA
IFTA’s official purpose according to the International Fuel Tax Agreement, is “to promote and encourage the fullest and most efficient possible use of the highway system by making uniform the administration of motor fuels use taxation laws with respect to qualified member vehicles operated in multiple member jurisdictions.” When an IFTA form is filed with the appropriate jurisdiction, The Fuel Tax Report is then used to determine the tax amount due as well as the refund due. It is also used for redistributing collections from the jurisdictions that received IFTA payments, and the jurisdictions that deserved some. One of the reasons for the Fuel Tax is to ensure that a vehicle pays taxes to all deserving jurisdictions. For Example: if a vehicle travels through a state, but buys no gas while in that state, then there was no fuel tax paid to that state through the purchase of gasoline. Part of their tax would then be redistributed to the state that received no fuel tax through the purchase of gasoline.
Get IFTA Organized
Since the data required to file IFTA is so incredibly detailed, many people receive Audits of their IFTA information. The sadness of this is that this can be prevented by better record keeping. Express Truck Tax, along with providing a terrific service for other Truck Tax needs, will perform an internal audit of your IFTA information for you. In this internal audit performed by Express Truck Tax, it will check for basic mistakes and discrepancies, as well as perform a state adjacency check and an abnormal MPG audit. They also provide online trip sheets for drivers to keep accurate records that can be accessed from any computer, anywhere! If you can prevent an audit due to simple mistakes on an IFTA return, it makes no sense not to let Express Truck Tax help you get it right the first time.