Monthly Archives: May 2013

What You Need to Know when Filing for IFTA Return

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Your trucking business is not limited within your state but can go beyond that. Additionally, those into the trucking business have to hire truck drivers for delivering goods from one place to another. Expanding the business in various states would be profitable but managing the fuel tax agreement might not be a pleasant experience because different states have different fuel taxes imposed. In addition, truck owners and operators are required to file fuel tax through IFTA and there certain rules attached to it. To save time, it is advisable to prepare for IFTA return online. In this blog, we shall discuss more about IFTA also providing tips and instructions.

Why Obtain an IFTA License: Trucking companies who thought filing fuel tax return was a burden might not be aware of the advantages that IFTA license provides.

  • Having IFTA license gives trucking companies the authority of moving their vehicles in various IFTA jurisdictions.
  • Truck owners need to file for International Fuel Tax Agreement return once under their base jurisdiction and should have the necessary details about the mileage and fuel use in other jurisdiction.
  • Audits are conducted by the base jurisdiction or the state in which the vehicle is licensed to.

Trucking companies filing IFTA return need to know that they would have to deal with one auditor, who belongs to the place where the business operates. Unlike previously, when businesses had to report to different auditors in different states. In addition, there might be states having different requirements for trucking companies filing this tax return. For example, there are states wanting truck companies to keep important credentials such as fuel receipts and trip permits for four years whereas, there might be states wanting the documents to be kept for more time. It is important for business owners preparing for the International Fuel Tax Agreement to be careful on these details to avoid penalties.

Filing IFTA Return Every Quarter for California State:

The deadline for the 2nd quarter to file for IFTA return is July 31, 2013. Interstate motor carriers having their base jurisdiction as California should file a completed tax return form, which comprises of two parts: ‘IFTA Quarterly Fuel Use Tax Return’ (IFTA-100), and ‘IFTA Quarterly Fuel Use Tax Schedule’ (IFTA-101). Motor carriers should ensure providing all the details in IFTA-101 form such as the fuel used or calculate the tax due on the total usage of fuel in each jurisdiction. Further, the information should be transferred to the IFTA-100 form. It is good to know that motor carrier owners need to make one payment and not different payments for the various jurisdictions they have purchased fuel from.

TaxIFTA.com makes it easy for interstate motor carrier owners prepare their IFTA return online, which they can mail it to the ‘California State Board of Equalization’ or whichever jurisdiction they belong to.

Important Records IFTA Tax Filers Should Maintain

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IFTA is a quarterly tax paid by motor carrier owners having IFTA license and operating their vehicles from one state to another. Due on April 30th for the first quarter, It is important for motor carrier owners to pay their IFTA return on time and doing through an online service provider like TaxIFTA.com can help them prepare IFTA returns from anywhere and anytime. However, this fuel tax filers should make sure their records are accurate and safe to help them during an audit. Additionally, it has been clearly stated in the ‘IFTA Procedural Manual’ that IFTA filers need to maintain their mileage and fuel records properly. Besides, the International Registration Plan (IRP) and International Fuel Tax Agreement require the records for appropriate distribution of tax to the various jurisdictions. Read on to know more.

Records IFTA Filers should keep:

As mentioned, IFTA filers should keep a track of the complete mileage traveled for every vehicle used by him or her on the road. In addition, the information available in the records should be authentic to avoid any problems during an IFTA audit. The important records that tax filers should have are:

  • The Accurate Motor Carrier Name.
  • The Right Vehicle Number.
  • Accurate Vehicle Identification Number or VIN.
  • The distance traveled by the vehicle.
  • Complete details of the start and end date of every trip.
  • The origin and destination of every trip.
  • The pick-up and delivery destinations of the vehicle.
  • Details of the places where fuel was filled.
  • The travelling routes.
  • Total mileage used on the American states and Canadian provinces.
  • Total trip distance covered by the vehicles.
  • Original fuel invoices, which should include the date, customer name, seller name, gallons of fuels used, type of fuel, tax paid, and finally the OEN or VIN.

According to the International Fuel Tax Agreement , the records should be kept for four years from the time the tax return was filed or it was due. It is important for tax filers to know that the record keeping requirements might differ from one state to another. Therefore, tax filers are advised to gather the complete information to avoid mistakes. Similarly, as it is essential to maintain the records to avoid any hassles, filing IFTA on time can help tax filers avoid penalties and interests. TaxIFTA.com helps you prepare your IFTA tax accurately and without much difficulty. Take a step ahead by preparing your IFTA return online with a single click of a mouse.