What IFTA is
The International Fuel Tax Agreement lets carriers report fuel tax once, to their base state, instead of filing separately in every state they drive through. Each quarter you report the miles you ran and the fuel you bought in each state, and your base state settles up with the others.
Who needs it
You generally need an IFTA account if your vehicle crosses state or provincial lines and:
- Has two axles and a gross vehicle weight over 26,000 lbs, or
- Has three or more axles at any weight, or
- Is used in combination over 26,000 lbs
The quarterly return
Returns are due the last day of the month after each quarter ends: April 30, July 31, October 31 and January 31. You owe tax where you drove more than you fueled and get a credit where you fueled more than you drove. You have to file even in a quarter you didn't run.
Records that hold up
An IFTA audit asks you to prove every mile and every gallon. Keep:
- Trip records with dates, routes, odometer readings and miles by state
- Fuel receipts or fuel card reports showing date, location, gallons and price
- ELD and GPS data that backs up your miles
Common mistakes
Filing late, missing receipts, reporting miles that don't match the ELD and forgetting to display decals are the usual problems. Late filing brings penalties and interest, and repeated misses can get your license revoked.
General information, not legal or tax advice. Rules change and depend on your situation. Check with FMCSA, the IRS or your state, or call us.
