Congratulations on another year behind the wheel! 2020 was a wild year for all of us (especially truckers).
There’s no telling what 2021 will have in store for you as you keep on truckin’. We’re sure you’ve come up with some great new years resolutions. One resolution you should add is getting started on the 4th quarter IFTA deadline that’s coming up on February 1.
It was created in order to simplify the reporting of fuel used by qualifying motor vehicles that travel between at least two or more jurisdictions. The collected taxes are redistributed among the jurisdictions.
Your vehicle qualifies for IFTA reporting if it:
Has two axles and a gross vehicle weight exceeding 26,000 pounds
Has two axles and a registered gross weight exceeding 26,000 pounds
Has three or more axles regardless of weight
Or has a combination weight exceeding 26,000 pounds.
In order to comply with IFTA, you will apply for your IFTA license with your base jurisdiction or home state and keep it in your cab at all times. You will also receive two IFTA decals that you will need to keep on your driver’s side door at all times. Plus, you will need to complete your IFTA return four times a year.
You will need to provide the following information to complete your IFTA return:
Total miles traveled per jurisdiction
Total gallons of fuel consumed per jurisdiction
Total tax paid gallons of fuel purchased per jurisdiction
And the current tax rate per jurisdiction.
If you fail to complete your IFTA return you will have some penalties to face and they aren’t cheap. If you fail to file by the deadline you will face a penalty of $50 or 10% of the total amount due, depending on which amount is higher.
Then you will face a monthly fee of .4167% of the tax due until you fully pay the amount you owe. States also reserve the right to impose their own penalties and revoke your IFTA license, which would park you!
Check out ExpressIFTA
But you don’t have to worry. ExpressTruckTax has a sister-product called ExpressIFTA that makes IFTA reporting incredibly easy online. You can track all of the totals you need to complete your return in one convenient location!
Plus, you can import all of your information all at once with the bulk upload feature and import all of your information at once. Also, you can import all of your mileage information directly from your GPS.
Best of all, all of your totals will be automatically calculated in a quarterly IFTA report that can be downloaded, printed, emailed, and used to instantly complete your IFTA return! It’s the fastest and most hassle-free way to handle IFTA.