Any time when taxes are involved things can get confusing. You have to when deadlines are, what materials are required to file, how to file, and more. With the 3rd quarter IFTA deadline quickly approaching on October 31st, we, the truck tax experts at ExpressTruckTax, decided to take it upon ourselves to be your resource guide, by answering common IFTA questions.
Popular IFTA Questions
When is IFTA Due?
IFTA is actually due four times a year, which is why your IFTA report is commonly referred to as your ‘quarterly IFTA report’. The IFTA deadlines are as follows:
1st Quarter - April 30th
2nd Quarter - July 31st
3rd Quarter - October 31st
4th Quarter - January 31st
It just so happens that this year the 1st quarter IFTA deadline falls on a weekend, Sunday, April 30th, and when IFTA deadlines are on a weekend or federal holiday they’re pushed back to the next business day.
2. What exactly is IFTA?
IFTA is the International Fuel Tax Agreement and it is an agreement with the 48 contiguous states in the US and 10 Canadian provinces that's designed to simplify the fuel use reporting for qualifying motor carriers that operate in more than one jurisdiction (state).
Now you may be wondering what a qualifying motor vehicle is, so we will clear that up. A qualify motor vehicle is vehicle or combination of vehicles that are designed, used, or maintained for the transportation of property of people that have two axles and a gross vehicle weight over 26,000 pounds, two axles and a registered weight exceeding 26,000 pounds, three or more axles regardless of weight, or a combination weight exceeding 26,000 pounds.
3. I rarely travel outside of my jurisdiction, do I need an IFTA license?
You don’t necessarily need an IFTA permit, but you will need a temporary fuel permit, which allows qualifying vehicles without IFTA credentials to temporarily travel in their intended state. To get your temporary permit contact a DMV in the state you will be traveling in. You will need to provide them with information such as your VIN, vehicle model, and more.
Each state has their own temporary trip permit regulations. Some offer temporary permits with varying prices and lengths of time, so you may purchase the one the best suits your travel needs.
4. How do I prove that I Filed my IFTA Report?
You will receive a copy of your IFTA license on an annual basis as long as you file your quarterly reports. Keep a copy of your license in your office and in your qualifying vehicles at all times.
Also, you will have two IFTA decals to display on your truck. It’s best to keep them clearly displayed under the window on your driver door.
When you travel without your IFTA license or decals, you will be subject to receiving a fine and you may have to purchase a temporary permit, or both.
5. What Happens if my IFTA Return is Late?
If your IFTA Return is late, or you fail to file, your base jurisdiction may give you a penalty of $50 or 10% of the taxes owed, depending on which is greater. Also, your base jurisdiction reserves the right to impose additional penalties based on their laws.
Plus, your base jurisdiction will assess the amount of unpaid taxes you owe to each jurisdiction and interest will accrue on that amount at a rate of 1% per month.
6. What do I Need to Complete my IFTA Report?
You will need the following information to complete your IFTA return:
The total miles taxable and nontaxable, traveled by all the licensee's qualified motor vehicles per jurisdiction. This includes IFTA and non-IFTA miles, and trip permit miles.
The total gallons of fuel consumed by the licensee's qualified motor vehicles per jurisdiction, including taxable and nontaxable, IFTA, and non-IFTA.
The taxable gallons used and purchased per jurisdiction.
And the current tax rate per jurisdiction.
Do You Have More Questions?
Well then ask us! We’re IFTA experts, and we’re here to help. Feel free to contact our dedicated support team with any questions that you may have. We’re available Monday - Friday from 9 AM to 6 PM EST at 704.234.6005. We’re also available via live chat and offer 24/7 email support at email@example.com