Category: Fuel Tax

The IRS Warns, Watch Out For Dyed Fuel

Beginning in the 1990s, the government mandated that some fuel be dyed red or blue in order to be easily identified as non-taxable.

This dyed fuel is something that commercial motor vehicle operators should never use. If you are caught using dyed fuel, you could be fined thousands of dollars.

Here’s what you need to know about dyed diesel fuel.

What is fuel dyed?

Clear fuel already has excise taxes applied to it at the pump. The IRS does not want anyone to dodge these taxes by using non-taxed fuel.

Red fuel is intended solely for fueling off-road vehicles like tractors, construction equipment, and generators. Red fuel can be purchased by the public, but it is not taxable. It should not be used in commercial motor vehicles. 

Blue fuel is used only by government vehicles and cannot be purchased by the general public.

What happens if you are caught using dyed fuel?

In most states, if you are caught with any evidence of using dyed fuel, you will be fined $10 per gallon or $1,000 per tank. Then, for each repeat violation, that fine goes up by another $1,000.

And if you refuse to allow an inspection, you will be fined $1,000. So, in short, be extra sure you aren’t using dyed diesel. Pay attention to labels at the pump, and make sure you are purchasing from a trustworthy source.

What if you find dyed fuel in your tank?

You should drain the fuel as soon as possible. If you purchased the fuel and paid taxes on it, you should contact the establishment where you purchased it (and probably let the IRS know).

Need to generate an IFTA report or File Form 2290?

If you need to complete either of these trucking taxes, look no further than ExpressIFTA and ExpressTruckTax!

Their simplified solutions make it easy to generate IFTA reports and file Form 2290 in minutes!

Yikes, I Missed The IFTA Filing Deadline. Now What?

By now you’ve probably realized that the 2nd quarter IFTA filing deadline was yesterday, July 31st.

Crap.

Let’s be honest, who even knew there were 31 days in July anyway?

Don’t sweat it – missing the IFTA due date happens every IFTA filing quarter to tons of people.

Here’s what to do if you missed the 2nd quarter IFTA filing deadline.

Yikes, I Missed The IFTA Filing Deadline. Now What?

Understand The Penalties

The penalty for missing the IFTA filing deadline is $50 or 10% of your total tax, whichever is higher.

On top of that, you’ll be charged .4167% interest on your total tax monthly until the fuel tax is paid.

In addition, and here’s the real kicker, your base jurisdiction reserves the right to revoke your IFTA license.

Sounds terrible right? Well here’s the good news.

Avoid Those Penalties

You don’t need to go through all of that.

The penalties worsen the longer you wait to file your IFTA tax. Since the IFTA due date was yesterday, if you file your IFTA fuel tax today, the only fee you’ll pay is $50 or 10% of your tax.

Plus, in some cases, if you file immediately after the deadline, you can get your IFTA filing in before anyone even realizes it’s late and potentially avoid the basic fee.

Also, first-time IFTA due date offenders will probably not have their license revoked, especially if they can rectify the situation quickly.

Here’s a summary of what I’m saying – You need to file now!

You’ve realized your mistake and you have taxes on your mind, so what are you waiting for?

Knock out your IFTA fuel tax now before this gets out of hand.

File Your IFTA Fuel Tax Fast

You need a quick IFTA reporting solution, but don’t worry, we have a suggestion!

ExpressTruckTax has everything you could possibly need to file your IFTA fuel tax.

We’ll generate your IFTA report and take care of all the calculations for you, including total miles, gallons, miles per gallon, and IFTA tax amount.

We have all the tools you need to simplify the process, including bulk upload and a free IFTA tax calculator!

IFTA reporting doesn’t get any simpler.

Missing the IFTA due date happens, but excessive penalties don’t have to.

Today Is The 3rd Quarter IFTA Deadline

ExpressTruckTax promotes IFTA reporting with ExpressIFTA

Hey trucking nation, we are here with an important reminder! Your 3rd quarter IFTA return is due today, October 31st, by midnight. If you fail to file by the deadline then you will have some expensive IFTA penalties to deal with.

However, you don’t need to scramble around looking for a way to generate your IFTA report or spend hours working on your calculations, because ExpressIFTA is here to help. ExpressIFTA is a proud sister product of ExpressTruckTax and offers the market-leading IFTA reporting solution online to take the hassle out of generating your quarterly report. Check out how easy it is!

IFTA Reporting With ExpressIFTA

All you have to do is log in to ExpressIFTA with your ExpressTruckTax account for free. If you don’t have an ExpressTruckTax account then you can create your free ExpressIFTA account with your email address and personal password.

Next you will enter your business information, including the name, address, and EIN (Employer Identification Number). You will also enter your base jurisdiction, which is the state where your vehicle is registered and your vehicle information, including the VIN (Vehicle Identification Number).

After that you will enter your fuel and mileage records at your own pace for the current quarter. You can enter your totals per trip to keep extremely detailed information or enter your information per trip with the quick entry feature.

Or you can even upload all your information at once with an Excel or CSV file by using the bulk upload feature. You can even upload all of your distance records directly from your GPS.

Best of all, ExpressIFTA allows you to report your totals according to your personal preferences. For example, you can enter your distance information by miles traveled or odometer readings.

 

ExpressIFTA and ExpressTruckTax make truck taxes easy

Also, you don’t have to worry about handling any complicated calculations yourself, because ExpressIFTA automatically does all of it for you. All of your IFTA totals will be calculated with 100% accuracy based on the information you enter. This way you will always know how much fuel tax you owe, and you’ll never over or underpay the amount.

When you’re done entering all of your information for the quarter ExpressIFTA an internal audit check will be performed to catch any basic errors. For example, if you stated that you traveled between two nonadjacent states.

Then you can pay and generate your quarterly IFTA report. This report is easy to read and will clearly display all of your IFTA calculations. You can print it, email it, and use it to instantly complete your return.

Also, because ExpressIFTA knows that you need to store your IFTA information for four years for auditing purposes, all of your information will be stored in your account per quarter. It can be accessed at any time.

Contact A Truck Tax Expert

If you need any assistance the outstanding, US-based ExpressTruckTax support team is here to help. Give us a call Monday – Friday from 9 AM to 6 PM EST at 704.234.6005. You can also reach us via live chat and take advantage of our 24/7 email support at support@ExpressTruckTax.com.

Do You Have An IFTA Waiver?

ExpressTruckTax goes over IFTA pnelaties

Time really flies, doesn’t it? It seems like just yesterday it was a hot summer day and your 2nd quarter IFTA return was due. Well, now it’s a cold autumn day and the 3rd quarter IFTA deadline is almost here. You have less than a week to file by the October 31st deadline.

Because a lot has happened this IFTA quarter with hurricane Harvey and Irma you may have a few IFTA questions regarding the waivers. That’s why we’re here to help by going over them and answering other common IFTA questions that you may have, so you can quickly and easily file. 

Your IFTA Questions Answered

1. Will A Waiver Affect My Return?

Hurricane disaster relief efforts for hurricane Harvey and Irma depended on truckers to bring in crucial supplies, as a result regulations like hours of service were lifted and IFTA waivers were issued in some states. To qualify for these lifted regulations you needed to be transporting hurricane disaster supplies to affected areas.

States that issued IFTA waivers include Iowa, Georgia, Illinois, Tennessee, Alabama, Colorado, West Virginia, Wisconsin, New Jersey, Florida, and more.

Each waiver was different depending on the state, but generally, they suspended IFTA requirements for 30 days. Meaning you didn’t need your IFTA license or decals to travel through those states during the time of the waiver.

Delaware actually issued a temporary IFTA and IRP waiver from September 13th for the duration of the emergency or until October 6th, depending on which was less. Illinois’s waiver was from July 14 to August 14th.

These waivers do not have an impact on the IFTA deadline. Your return is still due on October 31. However, the best way to find out information about waivers and the deadline for your base jurisdiction is to contact a local DMV office.

2. What Are The Late Filing penalties?

It’s best to go ahead and file to avoid facing the steep late filing penalties. For example, if your return is late you will face a penalty of $50 or 10% of the amount you owe, depending on which amount is greater.

Also, if you fail to pay the amount you owe by the deadline you will be charged .4167% of the total tax you owe. This amount will accrue on a monthly basis until you pay the total amount you owe.

 

Learn what's required to complete your IFTA return with ExpressTruckTax

Also, your base jurisdiction reserves the right to suspend or revoke your IFTA license if you file late. However, don’t worry, this usually isn’t the case for first-time offenders.

3. What Do I Need To Complete My IFTA Return?

In order to complete your return, you need your:

  1. Total miles, taxable and nontaxable, traveled per jurisdiction, including IFTA and non-IFTA miles, and trip permit miles. 
  2. Total gallons of fuel consumed per jurisdiction included taxable and nontaxable, and IFTA and non-IFTA. 
  3. Tax-paid gallons of fuel purchased per Jurisdiction. 
  4. And the current tax rate per jurisdiction. 

4. How Do I Prepare To File?
Use your ExpressTruckTax account information to log into ExpressIFTA where you can easily report everything you need for your IFTA return online. Enter your mileage and fuel records at your own pace and ExpressIFTA will do the complicated work for you.

For example, ExpressIFTA will accurately calculate the amount of fuel tax you owe for you. Plus, all of your information will be generated into an IFTA report that can be printed, emailed, and used to instantly complete your return.

ExpressIFTA is brought to you by the same team that created ExpressTruckTax and we are here to help. If you have any questions please don’t hesitate to contact our US-based, dedicated team of truck tax experts.

Give us a call at 704.234.6005 Monday – Friday from 9 AM to 6 PM EST. You can also reach us via live chat or through our 24/7 email support at support@ExpressTruckTax.com.

Today Is Your IFTA Deadline

Today is Your IFTA Deadline
Today Is Your IFTA Deadline

Do you know what today is? Yeah, it’s that spooky time of year we all look forward to – Halloween – but it’s also the 3rd Quarter International Fuel Tax Agreement deadline!

That might sound scary, but don’t worry, we got you covered. With our cloud-based software, we’re the best option for generating your IFTA taxes online.

Just the Facts

Truckers who drive between IFTA member states need to have an IFTA decal (the one with your base jurisdiction) on your truck. If you’re a company driver, this might be taken care of for you, but for everyone else, today is the day to file your IFTA report.

If you can’t file today, you still have to file your IFTA report later. If you file late, you’re going to face IFTA penalties. In most IFTA member states, the penalty for late filing is a flat rate fee of $50 or 10% of the taxes due, depending on which is greater in value. Of course, in Nevada, the penalty for late filing is a $50 flat fee plus 10% of the taxes due.

Once you’re late,, you will be charged .4167% of the tax due every month until the tax amount is paid. Except for in Nevada, where you’re charged .4167% of the tax due every month, as well as an administrative late fee of $100 the first time, $500 the second time, $1000 the third time, $1500 the fourth time, $2000 the fifth time, and $2500 for every time after that.

The Deadlines Are When?

IFTA runs on a quarterly system, which means there are four deadlines throughout your tax year. The calendar of IFTA due dates are as follows:

  • Q1: January – March, due date of April 30
  • Q2: April – June, due date of July 31
  • Q3: July – September, due date of October 31
  • Q4: October – December, due date of January 31

What Should You Do?

If you’ve come across our blog, there’s a good chance you need to file an IFTA report. To do that, you’ll have to have your fuel logs, mileage records, and trip logs ready to go. Simply sign up for an ExpressIFTA account and within a few clicks and some quick entries, you’ll have the easiest IFTA quarterly return possible. Have questions? Call our customer support experts at 704.234.6005!

Heavy Highway Vehicle Use Tax 2290 & IFTA: an Overview

What are they?
Heavy Vehicle Use Tax (or HVUT) is, just as it sounds, an annual tax on Heavy Vehicles that operate on public highways. The IRS Form 2290 is what is used by the government to collect this tax. It is a fee that the IRS requires all vehicles with registered gross weights equal to or exceeding 55,000 pounds to pay annually on heavy vehicles operating on public highways. The tax collected is a significant source of transportation funding in the U.S. In 2006 alone, the HVUT generated more than $1.4 billion in Federal Highway Trust Fund (HTF) revenue.
IFTA is short for the International Fuel Tax Agreement, which is an agreement between American and Canadian jurisdictions to simplify the reporting of motor fuel taxes purchased and consumed. Under this agreement, one quarterly fuel use tax report is filed representing miles traveled, fuel purchased and used, and taxes/credits due in each member jurisdiction. The base jurisdiction then distributes the funds to each affected jurisdiction according to information contained in the quarterly fuel use tax reports. An interstate motor carrier operating “qualified motor vehicles” between at least 2 member jurisdictions (The 48 contiguous states of the US and 10 Canadian provinces) must have an International Fuel Tax Agreement (IFTA) license and decals issued by their base jurisdiction. If you have the IFTA license, you must file the Quarterly IFTA Return to your base jurisdiction.
How do they Work?
Besides the fact that they are both fees imposed on heavy vehicles, these are both similar in that they are both very complicated through the traditional paper-filing process. The complications with IRS Form 2290 come from the difficulty of actually filing one. The trouble with IFTA is that it is an incredibly detailed system.
The IRS Form 2290 includes a Schedule 1 which must be stamped by the IRS. This can either be mailed to the IRS, which can take up to several weeks to process. It can also be taken directly to the IRS office, which can take several hours of your day. This must be accompanied by the proof of EFTPS payment.
IFTA requires drivers of Heavy Vehicles to keep trip logs of miles traveled as well as how much fuel was purchased in each state or province. IFTA must be filed quarterly and the filing date is the 30th of the following month. These trip logs are difficult to keep up because they require very detailed information. As mentioned earlier, these forms are then filed with their base jurisdiction. Most states do not provide E-Filing as of yet. Therefore most of the time these forms are mailed to the state.
One Solution for Both
A simple solution for both of these is to use an online E-File Provider. The most advanced of the available services is www.expresstrucktax.com. Express Truck Tax acts as a one stop shop for all truck tax needs. Through them, you can E-File your Form 2290 with the IRS. It also provides a way to keep online records of your mileage and fuel purchases for IFTA reporting. This can make the IFTA process much easier.

Express Truck Tax Overview Video (E-file IRS form 2290)

Why e-File Form 2290 with Express Truck Tax?
May be the more appropriate question would be, why wouldn’t you use Express Truck Tax to file Form 2290 or Form 8849 or IFTA? We don’t mean to brag, but we do have the lowest prices, the most experience, the best customer support and the most user friendly software to e-File Form 2290 in the industry.
We’re really good at what we do, and what we do is make taxes easier for you.
IRS Approved
We’re an IRS authorized e-file provider. That means we’ve worked closely with the IRS to provide you with a safe, secure, accurate process that will save you time and money.
Experienced
Our technical and support team is the most experienced team in the industry. We were around when the IRS mandated e-filing for Form 2290. We helped the first customers file online years ago. We know the ins and outs of the filing process better than anyone else.
Safe and Secure
We have taken every possible step to make sure Express Truck Tax is safe and secure. Our site is encrypted and is HackerProof and COMODO certified. Your information goes to the IRS, and no one else.
Expert Help
We made Express Truck Tax as easy to use as possible. You’ll find contextual help bubbles and support text all over the place, guiding you through the process step by step. We also have some helpful video guides if you feel like kicking back and watching how it’s done. If you get stuck, you can always email us, or give us a call.
Power to the Pros
We support tax professionals, our competitors don’t. If you’re a tax professional, you can use Express Truck Tax for your clients–all of them–and take advantage of tax professional discounts.
The Right Price
We know we’re not the only ones providing this service, but we do know we’re the only ones doing it at this price with this level of quality. You won’t find a better combination of tax savvy professionalism and value-based pricing anywhere.

IFTA (International Fuel Tax Agreement) Information

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.

Organizing IFTA Fuel Tax Information with Express Truck Tax

The term IFTA refers to the International Fuel Tax Agreement. This agreement makes certain vehicles liable for a Fuel Tax for each state in which the vehicle was driven. IFTA is a tax collection agreement among the 48 contiguous United States and the 10 Canadian Provinces bordering the US.

Recording and Organizing the information required is a very precise and exacting task, but thanks to Express Truck Tax, there is now a much simpler web-based process. Vehicles required to prepare an IFTA return must keep track of miles traveled and fuel purchased within each state or province. Due to the complicated task of keeping accurate records, and filing this form appropriately many less than fortunate drivers receive IRS audits because information on their IFTA return was not properly entered.

As mentioned earlier, Express Truck Tax, along with providing a terrific service for other Truck Tax needs IRS Form 2290, will perform an internal audit of your 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 IRS audit due to simple mistakes on an IFTA return, it makes no sense not to. Let Express Truck Tax help get it right the first time.

IRS Form 2290 and IFTA(International Fuel Tax Agreement)

What are they?
IRS Form 2290 is what is used by the government to collect what is referred to as the Heavy Vehicle Use Tax or HVUT Tax. It is a fee that the IRS requires all vehicles with registered gross weights equal to or exceeding 55,000 pounds to pay annually on heavy vehicles operating on public highways. The tax collected is a significant source of transportation funding in the U.S. In 2006 alone, the HVUT generated more than $1.4 billion in Federal Highway Trust Fund (HTF) revenue.


The International Fuel Tax Agreement (IFTA) is an agreement between jurisdictions to simplify the reporting of motor fuel taxes. Under this agreement, one quarterly fuel use tax report is filed representing miles traveled, fuel purchased and used, and taxes/credits due in each member jurisdiction. The base jurisdiction then distributes the funds to each affected jurisdiction according to information contained in the quarterly fuel use tax reports. An interstate motor carrier operating “qualified motor vehicles” between at least 2 member jurisdictions (The 48 contiguous states of the US and 10 Canadian provinces) must have an International Fuel Tax Agreement (IFTA) license and decals issued by their base jurisdiction. If you have the IFTA license, you must file the Quarterly IFTA Return to your base jurisdiction.


How do they Work?
Besides the fact that they are both fees imposed on heavy vehicles, these are both similar in that they are both very complicated.  The complications with IRS Form 2290 come from the difficulty of actually filing one.  The trouble with IFTA is that it is an incredibly detailed system.  

The IRS Form 2290 includes a Schedule 1 which must be stamped by the IRS.  This can either be mailed to the IRS, which can take up to several weeks to process.  It can also be taken directly to the IRS office, which can take several hours of your day.  This must be accompanied by the proof of EFTPS payment.
 IFTA requires drivers of Heavy Vehicles to keep trip logs of miles traveled as well as how much fuel was purchased in each state or province. IFTA must be filed quarterly and the filing date is the 30th of the following month.  These trip logs are difficult to keep up because they require very detailed information. As mentioned earlier, these forms are then filed with their base jurisdiction.  Most states do not provide E-Filing as of yet. Therefore, most of the time these forms are mailed to the state.  

A simple solution for both of these is to use an online E-File Provider.  The most advanced of the available services is www.expresstrucktax.com.  Express Truck Tax acts as a one stop shop for all truck tax needs.  Through them, you can E-File your Form 2290 with the IRS.  It also provides a way to keep online records of your mileage and fuel purchases for IFTA reporting.  This can make the IFTA process much easier.