IFTA Reporting Requirements

What is IFTA?

Updated on February 3, 2023 - 2:00 PM by Admin, TruckLogics

The International Fuel Tax Agreement (IFTA) is an agreement between the 48 contiguous US states and 10 Canadian provinces to make it easier for motor carriers that operate in multiple jurisdictions to report their fuel usage.

Years ago, each state had its own set of fuel tax reporting regulations and requirements. Operators now only have to report fuel usage to their base jurisdictions, which collects taxes on net fuel usage and reimburses other states.

Now, the International Fuel Tax Agreement (IFTA) has been established to make the process of transferring fuel taxes to different states easier.

Who's required to Report IFTA?

Qualified motor vehicles

• With a gross vehicle weight (GVW) of at least 26,000 pounds
• Three or more axles, or both,
• As well as trucks used to transport commercial commodities across state lines or the US/Canadian border, must comply.

The vehicle's base jurisdiction is the state in which the vehicle is registered and where the operator maintains or has access to the vehicle's operational records.

IFTA requirements

• Register a base state - Your vehicle must be registered in your base jurisdiction, which is where your business is located. There are no precise standards specified by IFTA for these locations.
• Documents - All operators are required to keep track of their fuel consumption in a digital or hard copy.
• Qualified Vehicles - Qualified motor vehicles with a gross vehicle weight (GVW) of at least 26,000 pounds, three or more axles, or both, as well as trucks used to transport commercial commodities across state lines or the US/Canadian border.
• Fuel tax reporting - You must file a quarterly (four times per year) fuel tax report that covers all of your qualifying vehicles and pay any taxes due. It is recommended that you keep receipts for all fuel purchases.

Information required for IFTA Reporting

To generate IFTA reports for each quarter, here is the basic information that is required for reporting IFTA.

• The total miles, taxable and nontaxable, traveled by the IFTA licensee’s qualified motor vehicle(s) in all jurisdictions/states, regardless if they participate in IFTA, which includes all trip permit miles
• The total gallons or liters of fuel that is consumed by a qualifying motor vehicle, including taxable and nontaxable, in all jurisdictions/states, whether they participate in IFTA or not.
• Details about the vehicle, such as the truck/unit number, gross vehicle type, fuel type, fleet name, fleet number, make, and model.
• Business information such as the EIN, the name of the company, the type of business, and the address.
• IFTA details including the country, base jurisdiction, and the IFTA Account Number.

IFTA Reporting Due Dates

After each quarter, IFTA reports are due on the last day of the month following the end of the quarter.

Carriers must submit a quarterly tax return to their base jurisdiction for all of their qualifying vehicles that includes motor fuel usage and distance traveled in IFTA member jurisdictions. A report must be filed even if the carrier has not conducted any operations or utilized taxable fuel for a certain period.

The final day of April, July, October, and January (or the next business day if that day falls on a weekend or holiday) are the deadlines for filing a tax return and making a payment.

Click here to know more about IFTA filing dates.

Penalties for filing IFTA Report Late

Late filing of IFTA will charge a penalty amount based on the jurisdiction rules and number of months of late filing.

For most states, the penalty for late filing is a flat rate fee of $50 or 10% of the taxes due, whichever is greater. Some jurisdictions will differ from this flat rate fee.

Click here to find the IFTA Requirements, due date, and penalties for your State.

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