IFTA, International Fuel Tax Agreement is an agreement between 48 lower states of the United States and Canadian provinces to simplify reporting fuel tax used by Motor carriers that are operating in one or more jurisdiction. Every IFTA filer should enclose an IFTA license and decal for each qualifying vehicle is operates for quarterly filing IFTA tax return, determining the net tax and refund through the form. However, today, we are going to check how familiar you are with IFTA. A part of your successful trucking company is dependent on your understanding of IFTA. Here’s the most common questions asked by the truck drivers about IFTA.
Q. Do I need to file IFTA return? How do I discover that?
Well, this seems to be tricky. You need to file IFTA if you are operating your commercial vehicle within two or more IFTA jurisdictions and if your truck falls in following criteria:
- Weighs more than 26,000 pounds; and/or
- has three or more axles
Q. What does IFTA jurisdictions mean?
IFTA jurisdictions are the US states signed up for the agreement except Alaska and Hawaii, along with all 10 Canadian provinces.
Q. Where do I have to file my IFTA license?
Well, you need to prepare your return and file it to your base jurisdiction where your vehicle is registered. In other words, your base jurisdiction is the state where you do your business, own an office and you need to drive along the roads of the state.
Q. Where should I apply for IFTA license and Decal?
You need to get in touch with your base jurisdiction in order to gain more information about your license and decal. If you are applying online, you need to check the jurisdiction website for the same.
Q. What should I do if I have commercial vehicle is two or more jurisdiction?
It actually does not make any difference. You are registered with one base jurisdiction. You need to pay your taxes to the jurisdiction you are traveling that quarter.
Q. When should I report IFTA?
Every filer is required to file IFTA by end of each quarter- four times a year. The specific dates are April 30, July 31, October 31, and January 31.
Q. I didn’t make any run last quarter. Do I still need to file IFTA report?
Well, yes. You are liable to keep the jurisdiction informed and report Zero filing in form IFTA with no dues pending.
Q. What is the penalty for filing IFTA late?
Penalties and interest are part of late filing taxes. You need to pay penalty equal to $50.00 or 10% of the total taxes owed, whichever is greater.
Q. What are the records to maintain to file IFTA?
You need to keep a record of the miles you drive in that jurisdiction, the date, the gallons of fuel pumped. You also need to keep the receipts of the fuel you buy and ensure accurate details filled in the log book.
Q. What happens if I don’t meet the requirements set by IFTA?
You should always abide the rules of IFTA or your IFTA license would be revoked.
Q: Can I file my IFTA taxes online?
Well, you can file your IFTA taxes online depending upon your base jurisdiction. However, you can always prepare your IFTA return online through TaxIFTA.com to eliminate the errors and dump the difficult fuel tax rate calculations.
Q: Do I have any option for completing the IFTA paperwork?
You have two methods to prepare your return. The first method is you can do it your old school way, adding up the patience and hours bending over the desk and ensuring the calculation is right, as it has to be or come over to TaxIFTA.com, the ultimate service provider for preparing IFTA return online. It would do the math for you, saving you from breaking your head with tax rate offered by each jurisdiction. All you need to do is type in the required details and tax calculations would be right in front of you. We stand as the most reliable and apt software service provider for IFTA filers.
So come over and prepare your return online in minutes, leaving behind the errors and calculation cap. Reach our Tax Experts @ 1-866-245-3918 or shoot an email tosupport@taxexcise.com. We are here to serve you with authenticity, dipped with genuine services.