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.
How Does IFTA Work?
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.
Which Motor Carriers are Required to Obtain an IFTA License?
- A Commercial Motor Vehicle (CMV) with two axles AND a Gross Vehicle Weight Rating (GVWR) or Gross Combination Weight Rating (GCWR) of 26,001 pounds or more;
- A CMV with three or more axles regardless of weight.
Are Recreational Vehicles Exempt from IFTA?
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.
What Documentation is Required for IFTA Filing?
- Trip reports containing mileage traveled in each state;
- Fuel purchases (receipts, fuel card log) made in each state;
- IFTA license number and permit numbers (such as NYHUT and KYU).
Can Log Books be Used in Lieu of Trip Reports?
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.
When Must IFTA Be Filed?
Reporting Quarter Due Date
January – March April 30
April – June July 31
July – September October 31
October – December January 31
What Happens if Fuel Taxes Aren’t Filed?
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!
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