Personally, I’m a big believer in being prepared for anything and coincidence truckers are the same way. You never know what can happen, so it’s always best to be ready. When it comes to the International Fuel Tax Agreement, you can never be too prepared, and the learning never ends. The rules governing IFTA are a bit lengthy, and every single state is different, but don’t let that stress you out. IFTA is a lot easier when it is broken down, so let’s go over everything you need to know about reefer fuel regarding IFTA.
What is Reefer Fuel?
First of all, reefer fuel is NOT included when filing IFTA when it is used to power the refrigeration unit of the trailer. You should always purchase reefer fuel on a separate fuel receipt.
Never pump reefer fuel on the same fuel receipt when fueling your power unit. This will lower your MPG and cost you more IFTA fuel tax. Also, if you are selected for an IFTA audit, and it is discovered that you combined reefer fuel into your power unit file, you will be penalized and incur added interest on your IFTA audit.
IFTA & Reefer Fuel
You are entitled to a federal tax refund on each gallon of reefer fuel. You will need the total number of gallons of reefer fuel purchased during the tax year to complete the refund form. The IRS will send you a check for the federal tax paid on each gallon of fuel. If you failed to file for this refund, you could file back for the past three years to claim your refund.
You will want to check with your base jurisdiction to see how they handle reefer fuel. In Maryland, for example, if you only have one tank that propels your vehicle and runs the refrigeration unit, then all fuel is included in IFTA. If you have two separate containers, you need to fuel separately and make sure reefer is marked on the receipt. Do not add the reefer fuel on IFTA and you will able to get a refund by filing a claim.
So if you are operating an IFTA “Qualified Motor Vehicle” with a reefer unit, make sure to have the reefer fuel on a separate receipt and don’t include reefer duel on your IFTA return.
Generate Your IFTA Tax Report Today!
Our sister product, ExpressIFTA is full of innovative features to help you complete your IFTA quarterly fuel tax report. All you have to do to get started is create your free account, enter your business information, specify your base jurisdiction, enter your vehicle details, list your miles and fuel records, and generate your IFTA quarterly fuel tax report.
Say goodbye to that day of complicated calculations, ExpressIFTA’s software will accurately calculate your IFTA fuel tax rates and IFTA tax based on the information provided. Never worry about over or underpaying again.
Plus, their built-in diagnostic error audit can be run on your reports to catch any fundamental filing errors based on our estimated miles per gallon. It will recognize when miles traveled aren’t between adjacent states, and if you purchase fuel in a state you have not traveled in.