What is IFTA in trucking? What is it for and why do we need it? How do we do it? JLKS is going to answer all these questions for you in an easy-to-follow guide.
So what is IFTA?
IFTA is an agreement (International Fuel Tax Agreement) between 48 states and 10 Canadian provinces. It was created to simplify the reporting and payments of fuel taxes used by Interstate Motor Carrier Companies that are operating in more than one jurisdiction. Every trucking company that has an established place of business in their base jurisdiction from which operations are performed, and a Motor Carrier operating in at least one other IFTA jurisdiction has to apply and register for an IFTA license.
Who is required to report?
IFTA must be filed by companies that operate any vehicles crossing state lines which have 2 axles and a GVW/GVWR of 26,001 lbs or more; or if they have power units with 3 or more axles. The report is filed quarterly and includes the ratio between driven miles and the amount of fuel gallons you purchased in each state you drove.
IFTA Taxes Reporting
Here is the filing due date for every quarter in any given year.
- January through March (due by the last day of April)
- April through June (due by the last day of July)
- July through September (due by the last day of October)
- October through December (due by the last day of January)
IFTA Decals expire on the last day of December of each year. You must place 2 stickers per vehicle on both sides of the vehicle.
I hope your questions about IFTA have been answered. If you are still confused, or if you need filing assistance, visit our filing service page here: Filing Service Page.