IFTA Filing Due Dates
The International Fuel Tax Agreement (IFTA) is a tax that must be paid by all trucking business owners in the US, except for Hawaii and Alaska.
Who should do it?
The fuel tax is mandatory for all transportation companies, who must report the miles traveled and the gallons of fuel consumed by each truck every three months. If your transport company has one truck, you must submit only one IFTA report, but if your company has four trucks, you must submit four IFTA reports, which means one declaration per truck.
This report allows US states and Canadian provinces, known as jurisdictions, to get their fair share of fuel use taxes. Therefore, drivers of commercial vehicles must report the mileage of their trips to keep records.
Which are the steps to follow?
The first thing to do is fill out an application submitted through the jurisdiction to start the process. You must be very clear in the username and password since this information is in the “IFTA Welcome Letter” that arrives at your home when you register for the first time. After this, you must report the mileage and the total number of gallons or liters of fuel filled in the tank of each vehicle in your fleet during the reporting period. This information is available on ELD and the fuel card. Finally, remember always to have an official sticker on your truck and pay all IFTA taxes before the deadlines.
What are the consequences of submitting the IFTA report after the deadline?
Presenting the IFTAS after the established dates can generate fines of USD 50 or 10% of the net tax obligation for the quarter, whichever value is more significant.
On the other hand, presenting false declarations can become a criminal offense or bring civil infractions with fines of more than USD 1,000.
In the event it is found that the returns were not filed to commit fraud or evade fuel use taxes, the person involved may be criminally prosecuted and fined up to USD 5,000.
How do truckers benefit from the IFTA report?
One of the main benefits is saving money. Temporary permits vary in validity; a new one must be acquired each time it expires, increasing costs. In comparison, the IFTA has a single rate.
You also save time by not having to fill out as much paperwork and individual documents, you make fewer errors when filling out forms, and therefore it is easier for you to be in continuous compliance and up-to-date with your documentation.
In addition, the reporting and payment of the IFTA allow for maintaining the necessary infrastructure so that companies can prosper; it is an aid for the functioning of the market through business regulation and likewise promotes the application of fair commercial practices for the entire union.
Is the IFTA report a requirement for my commercial insurance?
Having the IFTAS up to date is a requirement for different essential processes of your trucking company, such as access to commercial insurance for your vehicle; if you do not have the IFTA reports up to date within the established dates, an insurance agency will not be able to sell you commercial insurance or renew one you already have.
There are other processes for which IFTA is also a requirement, for example, you will not be able to acquire the Canada Bond for the transport of cross-border cargo, you will not be able to renew your plates or receive the respective IFTA stickers if your report is not up to date.
Our team of specialists at Personal Truck Services does all the paperwork for you, helping your transport company have all the documentation in order. This way, you save time on procedures, avoid fines, and have updated documentation to renew your commercial insurance. Contact us to help you file your IFTA return at (832) 360-2067, firstname.lastname@example.org.
To learn about the transportation industry, visit the blog session on our website.