The International Fuel Tax Agreement, or IFTA, requires certain vehicles to pay a Fuel Tax to each state that it was driven in. IFTA is a tax collection agreement among the 48 contiguous United States and the 10 Canadian Provinces bordering the US.
IFTA requires a report for each vehicle of how many miles were travelled as well as the amount of fuel that was purchased in each state or province. This helps accurately allocate how the payments collected through IFTA are distributed. For example, if a vehicle drove through a state, but did not purchase any fuel in that state, part of the vehicle’s IFTA payment would be distributed to the state without any fuel purchases because it used the roads of the state, but payed no taxes for the fuel consumed within that state.
These reports can be very difficult to keep a record of, but fortunately, ExpressTruckTax.com has built a tool that can help drivers accurately keep a record of their Fuel Use. It is even possible to generate state IFTA returns online with this program. This program also has some built-in auditing features that can check for common mistakes made on these returns. This will therefore, limit your risk of being audited because of IFTA. Some of the features include, but are not limited to: State Adjacency Check, Abnormal MPG Audit, and Free Online Trip Sheets!