IFTA, which stands for International Fuel Tax Agreement is for the vehicle owners whose motor carriers operate beyond its base jurisdiction (the state it belongs to). This involves the Canadian provinces and the 48 contiguous United States, excluding Alaska, Hawaii and the Canadian territories. Heavy motor vehicle owners having an IFTA license are required to file for the tax agreement quarterly. Many vehicle owners choose a certified online service provider to aid them prepare the tax return. Read on to know more about IFTA.
According to the International Fuel Tax Agreement, “IFTA is designed 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.”
How IFTA Works:
Vehicle owners need to know that almost every state in the U.S have their own tax fuel system. However, this tax agreement supports the ‘pay now or pay later’ option, therefore the fuel taxes paid to the states gets credited in the license holder’s account. The license holder should fill the tax report completely by listing the total miles covered and gallons purchased at the end of the fiscal quarter. The fuel mileage and the miles traveled are used for calculating the tax amount to be paid to the state jurisdiction. Different state jurisdictions imply different ways to calculate the tax amount for example, Kentucky and Mexico include the ‘standard fuel tax and weight mile taxes’ whereas, Oregon involves only the weight mile tax.
Preparing for Filing IFTA Return:
TaxIFTA.com makes it easy for truck owners to prepare the tax return in a hassle-free manner. We have designed a user-friendly online application to help them prepare the return at a minimal cost. Besides, the easy to use amendment form makes it possible to rectify the errors and do the possible corrections. However, keep in mind to take a print out to file the return. Reach us at 1-866-245-3918 for additional information and get your queries answered.