9/16/2009 - Common Fuel Tax Filing Mistakes
There are many misconceptions about Fuel Tax reporting and filing, and Foley Services Fuel Tax Preparation Experts have seen and heard it all. Here are some of the most common problems we’ve encountered while working on International Fuel Tax Agreement (IFTA) Quarterly Reports.
- Use Log Books Instead of Daily Trip Reports. Before they enrolled in our Fuel Tax Preparation service, many clients were using their log books to document trip information to meet their Hours-of-Service and Fuel Tax Reporting requirements. This is problematic since log books do not capture all of the information required for preparing quarterly fuel tax reports. In addition, there are different retention requirements for log books and trip reports.
- Fail to Keep Receipts for All Fuel Purchases. You must collect and retain detailed fuel receipts or invoices including the following information: (1) Date of Purchase (2) Seller’s Name and Address (3) Number of Units Purchased (4)Fuel Type Purchased (5) Price Per Unit (6)Unit Number of Vehicle and (7)Purchaser’s Name. Be sure to keep all receipts in a place that limits wrinkles and smudges.
- Fail to Meet Retention Requirements. It’s good to clean the home office every once in awhile, but be careful not to toss Fuel Tax reports and documentation too soon. Remember, motor carriers are required to keep IFTA tax returns, along with trip reports, fuel receipts and other supporting documentation, for four years from the applicable due date.
- Sloppy and/or Incomplete Trip Reports. At the end of the day, double check your paperwork to make sure it is complete and legible. Fill in any blanks, correct any errors and clarify any sloppy handwriting.
- Try to Do Too Much. Don’t let yourself fall into the famous jack-of-all-trades trap. Let a Fuel Tax Expert handle the time-consuming task of preparing quarterly Fuel Tax Reports while you focus on other key aspects of your business.
For more information about how Foley Services can assist you with your fuel tax reporting requirements, please call a compliance specialist at 1-800-253-5506, ext. 708.
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