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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.

What to Know When Preparing for IFTA Tax Return

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If you have read the previous blog on ‘A Short and Simple Guide to the International Fuel Tax Agreement’, then you might have understood what IFTA stands for along with the way it works. However, to learn about its ins and outs and the various aspects involved within it, make sure to read this blog providing additional information about thefuel taxreturn.

How to Get an IFTA License:

Individuals, whose qualified motor vehicle operates in any of the United States or Canadian Provinces qualify for an IFTA license. Moreover, there are certain requirements that vehicle owners have to fulfill for getting the qualified vehicle tag. Generally, vehicles that are used for transporting of goods and people come under the qualified vehicle criteria but there are additional aspects attached to it such as:

  • The vehicle has at least three or additional axles
  • The vehicle has at least two axles or has been registered under the gross weight of more than 26,000 pounds
  • Vehicles that come under the registered gross weight of 11,797 kg but should meet the specific requirements

However, in certain states there are few exemptions on qualified motor carriers. For example, recreational vehicles (in spite of their weight or axle configuration) that are not used for business purposes are not considered as a qualified motor vehicle.

Why to Register for IFTA:

Vehicle owners whose motor carrier operates in more than one states coming under theIFTA jurisdiction, should:

  • Decide on one of the International Fuel Tax Agreement member states as their ‘base jurisdiction’
  • Acquire fuel tax license for the various qualified motor vehicles so that they get the authorization to travel within the IFTA jurisdiction.
  • Vehicle owners need to prepare and file their IFTA return every quarter, where they need to report the usage of fuel and mileage used in the IFTA state and provinces.

When to File for IFTA:

Vehicle owners who qualify for IFTA license need to file for tax returns quarterly. The due dates to file for the International Fuel Tax Agreement are as follows:

January to March (April 30th)

April to June (July 31st)

July to September (October 31st)

October to December (January 31st)
It is advisable to prepare and file for the International Fuel Tax Agreement return before the time expires to avoid the penalties. We at TaxIFTA.com help you prepare your tax return, thus helping you reduce the stress and hassle.

Whether you have a suggestion for us or need an answer for your query. Call us at 1-866-245-3918 to help us serve you better.

A Short and Simple Guide to the International Fuel Tax Agreement

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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.

5 motive why to File IFTA via Service Provider.

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IFTA-One more piece of red tape again, for you owners & operators! Shuffling papers on your IFTA returns at each quarter is indeed a hard nut to crack. In times, an unintentional error may leave solid fines on your head. This is another bitter pill to swallow.

On flipping through your IFTA regulation handbook, you may be convinced that handling IFTA fuel tax returns might not time your minutes. But it does! Here, we give you five wherefores in full picture for hiring a tax professional.

  • A proficient IFTA professional helps you to put off those aches. He can let your focus on your business safety and customer service, since he can still sit for your tasks.
  • He cares for your penalties and fines by filing and paying your IFTA on time.
  • He perpetuates all your taxing and licensing documents revised.
  • He saves you from thefts & fraudulent, if any committed by your fleet drivers.
  • To the last word, hiring a tax professional is not just a comfort or an expense. It is really a safety investment to run your fleet system in top gear.
  • In addition to IFTA, he has the skill and time to analyze your account of proceedings, purchases & also spot inconsistencies.

Readers, take all these into account. It is not a casual chore of making up paper work over the course of year. IFTA calls for detailed trip reports running down the miles traveled and fuels fill-ins in each jurisdiction. Once you are falsified for inaccurate IFTA reports, you have to wear the hat for the brunt of penalties. At taxifta.com, as an alternate tax professional, we help you through call & mail. Reach us at 1-866-245-3918 or mail to support@taxexcise.com