May 25, 2016 – The International Fuel Tax Agreement is an agreement among the states (excluding Alaska & Hawaii) that requires motor carriers traveling within these jurisdictions to report their fuel usage. Prior to IFTA, each state had its own fuel system, which made reporting methods far more complicated.
Below are some of the most common questions regarding IFTA.
Each motor carrier is assigned an IFTA license number. When purchasing fuel, carriers must keep their receipts, either the hard copy or an electronic version from a fuel card. Four times a year (each quarter), carriers are required to submit their fuel tax payments to the state where their business is based. Just like IRS taxes, if the carrier has overpaid, they will receive a refund. If they underpaid, they will owe the difference.
Recreational vehicles such as motor homes and campers that are solely used for personal use are exempt. A complete list of IFTA exemptions can be found here.
Although log books and trip reports sometimes look similar, logs are used only to document hours of service and cannot be used in place of trip reports.
Reporting Quarter Due Date
January – March April 30
April – June July 31
July – September October 31
October – December January 31
Carriers will incur a financial penalty of $50 or 10 percent of the amount of taxes owed, whichever is greater, as well as revocation of their IFTA license.
Need help with your fuel taxes? Call (800) 253-5506 to speak with a Foley representative today!