Simplify fuel tax reporting with effortless IFTA compliance for truckers.
The International Fuel Tax Agreement (IFTA) is a cooperative agreement among the lower 48 U.S. states and Canadian provinces. It simplifies the reporting of fuel taxes for motor carriers operating across multiple jurisdictions. Established to streamline tax collection, IFTA allows carriers to file a single quarterly tax report with their base jurisdiction, which then handles the distribution of taxes to the appropriate regions.
Who Needs IFTA?
Motor carriers operating vehicles that meet the following criteria must register for IFTA:
By streamlining fuel tax reporting, IFTA helps motor carriers focus on their operations while ensuring compliance with tax laws across multiple regions. Proper understanding and adherence to IFTA rules are critical for smooth operations and avoiding penalties.
The first step in the IFTA process is conducting a comprehensive miles audit. This involves:
Once the mileage is verified, the next step is to calculate the fuel tax owed. This includes:
Periodic audits are conducted by individual states to ensure compliance with IFTA rules. This process includes:
