IFTA stands for the International Fuel Tax Agreement, which is an agreement among U.S. states and Canadian provinces that simplifies the reporting and payment of fuel taxes by interstate motor carriers. Motor carriers who operate qualified motor vehicles in multiple jurisdictions and meet specific mileage criteria are required to file IFTA tax returns.
You will need detailed records of the miles traveled in each jurisdiction, including both taxable and nontaxable miles. Additionally, you’ll need records of fuel purchases, including date, location, and gallons purchased, as well as fuel consumption records for each qualified motor vehicle.
IFTA tax returns are typically due quarterly, with deadlines falling on the last day of the month following the end of each quarter (e.g., January 31 for the fourth quarter of the previous year). Some jurisdictions may allow for monthly filing options as well.
Non-compliance with IFTA regulations can result in penalties, fines, and interest charges. It can also lead to a loss of IFTA privileges and the suspension or revocation of your IFTA license.
Yes, many jurisdictions offer electronic filing options for IFTA tax returns, which is often recommended for its efficiency and accuracy. Electronic filing reduces the chances of errors and provides a faster processing time.
While IFTA generally applies to most interstate motor carriers, some jurisdictions may have exemptions or special provisions for specific types of vehicles, such as agricultural vehicles or government vehicles. It’s essential to check with the individual jurisdictions for any applicable exemptions or provisions.