Filing IFTA Service ⛽
Filing IFTA Service ⛽
Why I need IFTA filing service
It’s no surprise that many business owners choose to hire IFTA preparation services. It might be difficult to determine whether you have IFTA filings. Once you’ve determined if you need this documentation, you’ll face not only entering all your gasoline purchases, but also calculating how much you owe in taxes.
This may be time-consuming and inconvenient for trucking company owners.
You might become mired down in paperwork instead of investing your time on things that are important to your firm, such as scheduling and servicing clients.
Worse, you may not completely comprehend the requirements, putting you at danger of making an error that might result in significant fines and even more red tape.
You can escape this destiny if you seek IFTA filing service. You may avoid making mistakes or providing incorrect information by delegating these responsibilities to the specialists at Dynamic Trackers.
We have IFTA filing knowledge and we will handle the complexities, allowing you to focus on running your business. Furthermore, if you ever face a tax audit, you can assure that we will have your data organized and ready for inspection.
What is IFTA?
The International Fuel Tax Agreement, or IFTA, is an international organization that includes both the United States and Canada.
This agreement was created to make it easier for motor carriers that operate in more than one jurisdiction to report their fuel use. Apply for your IFTA permission, and they will give you the IFTA stickers to install on your truck.
Before IFTA, the gasoline tax reporting procedure was time-consuming and costly. Each state has its own method for granting licenses and collecting taxes. Interstate trucks were obliged to carry special plates known as “Bingo plates,” which carried each state’s permission sticker. The current arrangement is referred to as a “pay now or pay later” system. This is how it works:
01.
When commercial vehicles buy fuel, the taxes paid are deposited to the licensee’s account.
02.
The licensee submits their fuel tax report at the end of each fiscal quarter, including the miles traveled and gallons purchased.
03.
The average fuel mileage is used to miles driven in each jurisdiction to compute tax obligation.
04.
Also to ordinary taxes, “weight-mile” taxes are collected in New York, Kentucky, and New Mexico.
05.
Fuel taxes (or refunds) are paid to the jurisdiction that granted the license.
06.
The funds are transferred to the appropriate member countries.
07.
The base jurisdiction conducts fuel tax audits.
IFTA
Many drivers have concerns about the IFTA and ask if it is always fair. In reality, the IFTA was established to make driving easier. Filing used to be complicated since tax rates differed from state to state. The IFTA, is a more effective manner of spreading taxes by providing a single fuel tax license that is valid in whatever state you drive in.
Who Needs To File For IFTA Stickers and IFTA Permits?
If you drive a qualifying motor vehicle in a United States or Canadian jurisdiction that is a member of the International Fuel Tax Agreement, you are eligible for an IFTA license. Your vehicle must fulfill the following weight criteria to qualify:
- Has three or more axles;
- or Has two axles and a gross vehicle or registered gross vehicle weight greater than 26,000 pounds or 11,797 kilograms;
- or Is utilized in a combination with a combined or registered gross vehicle weight greater than 26,000 pounds or 11,797 kilograms.
What Documentation is Required for Filing IFTA Reports?
All receipts, whether paper copy or electronic, must be kept by each carrier. Fuel tax payments must be sent to the state where the carrier is located four times a year (per quarter).
A refund is payable if overpayments occurred. If taxes were not paid in full, the difference is owed. Drivers must preserve trip records for miles driven in each state, besides any receipts for fuel expenditures.
Their IFTA license and permission numbers are also necessary. Because log books only record hours of service, they cannot be used in place of trip reports.
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Reporting Quarter
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Date Due
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January – March
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April 30
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April – June
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July 31
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July – September
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October 31
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October – December
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January 31
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IFTA Regulations That Must Be Complied
Following approval for an IFTA license, the following major regulations apply:
