For many years, paying fuel taxes was a nightmare for truckers and trucking companies. It required truck drivers to stop at every port of entry to buy a permit. That was both taxing and time-consuming. As the trucking industry continued to become more regulated, finding easier ways to pay fuel taxes became paramount. And as a result, IFTA was born in the early 80s.
What is IFTA Reporting?
IFTA stands for International Fuel Tax Agreement. It is a plan that was set up as a way to streamline the reporting of fuel use for truckers operating in at least one jurisdiction. The program involves 48 US states and ten provinces in Canada. However, Hawaii and Alaska are still not participants of this agreement. And obviously, there is not much interstate trucking expected involving Hawaii.
Today, carriers who operate interstate only have to file fuel taxes in their base jurisdiction. That gives them the freedom to operate in all member jurisdictions. Nevertheless, IFTA still requires trucking companies and truckers to file a quarterly report that covers every qualified vehicle. That means having to maintain, consolidate, and reconcile accurate records that track fuel purchases and Individual Vehicle Mileage Reports (IVMRs).
Benefits of Registering for IFTA
Believe it or not, there are some benefits to registering for IFTA. It may seem that paying fuel taxes gets more complicated with each passing year. But, in truth, the International Fuel Tax Agreement was created with truckers in mind. The purpose of the agreement is to simplify the process for everyone who must report, collect, or disburse fuel taxes.
The most significant benefit of registering for IFTA is that you’ll only have to deal with one jurisdiction. Drivers who travel through more than one jurisdiction will benefit the most. This alone will save you a considerable amount of time. As a busy trucker, you won’t have trouble finding ways to spend the extra time.
Registering for IFTA also saves you money by reducing temporary permit costs. In this way, it helps cut down on paperwork, thereby reducing errors that can result in fines or penalties.
When you complete an IFTA report, it goes to your base jurisdiction office. From there, it’s out of your hands. They take care of the rest. Also, with software for trucking, such as our TMS, your IFTA taxes are calculated automatically. Plus, the reports are always accurate. So, you’re off the hook for making sure the math is correct. That’s always a good thing.
Why Do You Need Trucking Management Software?
Even though IFTA reporting is necessary, processing the needed information manually can be a headache to endure. You have to maintain detailed trip records. These include stops and any detours you make. That means you have to spend a considerable amount of time digging up months of fuel records and calculating your mileage. For truck drivers, this could mean making frequent stops to complete their reports safely.
While all that is doable, sifting through the handwritten driver reports can be a time-consuming task for office staff. At times, reviewing receipts will require outsourcing. Considering that you have other responsibilities to take care of, and your busy schedule, it’s likely that the IFTA deadline will sometimes sneak up on you. Inaccuracies will also be inevitable.
To take the hassle out of IFTA reporting, truckers like you now use trucking management solutions. These do not only help them reduce the time taken to prepare these reports, but it cuts down the financial burdens, as well. The trucking software easily records and reports how many miles were driven in every state per vehicle for fuel tax purposes. The result? Improved precision in IVMRs, minimized possible audits, reduced potential fines. And, more importantly, better compliance with International Fuel Tax Agreement regulations. Even better, you’ll not have to worry about penalties, interest rates, or the much-dreaded audit.
Why Choose Our Trucking Management Solution?
At TruckingOffice, we understand that staying on top of the International Fuel Tax Agreement matters is critical. Also, we believe that accuracy and transparency reign supreme when it comes to International Fuel Tax Agreement reporting. That’s why we have built an easy-to-use and affordable software that helps you do more than just manage your dispatches and invoices. It enables you to complete these reports with ease and eliminate possible data entry errors.
Need Help with International Fuel Tax Agreement Reporting?
Want to get organized better and increase profits? If yes, always have TruckingOffice by your side. We’ll not only have you ready for International Fuel Tax Agreement and IRP in no time but help you keep up with your drivers and truck maintenance. That means no more struggling to find and coordinate information. Need more information about our trucking management solution? Just give us a call at (800) 253-9647. Be sure to Sign Up Here for a free trial today to start making IFTA reporting the easy way.