IFTA tax is a quarterly tax, meaning there are 4 IFTA deadlines.
The 3rd quarter IFTA deadline is October 31 – Are you prepared?
IFTA reporting covers a multitude of states, each with different rules.
So, what are the specific guidelines on reefer fuel and how do they affect IFTA filing?
IFTA Filing & Reefer Fuel
A reefer is a refrigerated trailer or shipping container used for transport of temperature-sensitive cargo.
Refrigeration units that use reefer fuel are not taxed like other fuel.
The main takeaway is that reefer fuel is NOT included in IFTA filing when it is used to power the refrigeration unit of the trailer.
You should always purchase reefer fuel on a separate fuel receipt when fueling your power unit.
Pumping reefer fuel on the same fuel receipt will lower your MPG and cost you more IFTA fuel tax. Plus, in the event of an IFTA audit, you will be penalized and incur added interest.
IFTA Reporting Guidelines
You’re entitled to a tax refund on every gallon of reefer fuel purchased. To complete the federal tax refund form, you’ll need the total number of gallons purchased during the tax year.
In return, the IRS will send you a check for the amount of federal tax paid on each gallon.
If you forget to file for this refund, you can file up to 3 years back to claim it after the fact.
Before you start IFTA reporting, you’ll want to check with your base jurisdiction to see how they handle reefer fuel.
For instance, in some states if you have only one tank that both propels your vehicle and runs refrigeration, all fuel is included in IFTA fuel tax. If you have two separate containers, you’ll need to fuel separately and keep receipts.
Check with your base jurisdiction to make sure you understand their specific process for reefer fuel.
File IFTA Online
IFTA reporting can be tricky, but save yourself the time and headache when you file IFTA online.
ExpressIFTA will generate your IFTA fuel tax form for you, as well as accurate IFTA fuel tax calculations.
To file IFTA online, simply create a free account, enter your information, and generate your IFTA fuel tax form.
Then, all that’s left is to file your IFTA fuel tax with your base jurisdiction.