Looking for a simple explanation of IFTA reports?  Let’s start with

What Is IFTA?

The International Fuel Tax Agreement (IFTA) is a fuel tax agreement that allows truckers to file one quarterly report covering all jurisdictions instead of filing separately in each state or province.  This eliminates the downtime at home, struggling with every state’s fuel tax report.  

Who Needs an IFTA License?

According to IFTACH.org, a Qualified Motor Vehicle is a motor vehicle used, designed, or maintained for transportation of persons or property and:

1) has two axles and a gross vehicle weight or registered gross vehicle weight exceeding 26,000 pounds or 11,797 kilograms; or

2) has three or more axles regardless of weight; or

3) is used in combination, when the weight of such combination exceeds 26,000 pounds or 11,797 kilograms gross vehicle or registered gross vehicle weight.

Or, in basic terms:

A vehicle is “qualified” for IFTA if it crosses state lines and meets any of these criteria:

• Heavy: It has two axles and weighs over 26,000 lbs.
• Big: It has three or more axles (regardless of weight).
• Combined: It is part of a combination (like a truck and trailer) that weighs over 26,000 lbs total.

How Do I Apply for IFTA?

You apply for IFTA in the state or province where your trucking business (sole proprietorship or LLC) is registered.  You can find a link on theTruckingOffice Resource Center website.  Most states now require the application to be filed electronically.  

When you establish your base jurisdiction, you will use that portal for all future contact about IFTA. From there, you can pay your IFTA quarterly returns, request additional IFTA stickers and manage other aspects of your IFTA license. IFTA has taken steps to streamline the fuel tax reporting process, but it can still be a daunting task to prepare and pay fuel tax and mileage reports four times each year.

The standard information required when applying for an IFTA license in your base jurisdiction.

What Information Is Required for IFTA Application?

Preparing your information for your IFTA application will speed up the process.

Category	Required Data Points
Business Details	Legal Business Name, DBA (if applicable), Business Structure, FEIN/SSN, and Physical Business Address.
Operational Info	Active USDOT Number, IFTA licensing history, and information on any bulk fuel storage sites.
Vehicle Data	Make, model, year, fuel type, full VIN, unit number, and registered Gross Vehicle Weight (GVW).
Supporting Docs	Proof of vehicle registration, IRS-stamped Form 2290 (for vehicles 55k+ lbs), and relevant lease agreements.

Note: Because IFTA is administered at the state/provincial level, always verify requirements on your specific base jurisdiction’s official portal. 

When you apply for your IFTA license, you’ll receive two stickers for your vehicle.  You display it on your rig.  If you need replacements due to wear or weather, use the same website.  The cost is usually minimal.

How to File Your IFTA Report

The steps to filing your IFTA report:

• Gather mileage and fuel purchase records.
• Calculate miles and fuel by jurisdiction.
• Review the totals.
• Log in to your base jurisdiction’s portal.
• Submit the return and pay any tax due.

Once you have your IFTA license and IFTA login information, you can process your IFTA quarterly tax return online using your base jurisdiction’s IFTA Fuel Tax System.

What are the IFTA Filing Deadlines?

You pay IFTA four times per year.

Reporting Quarter	Due Date
January to March	April 30
April to June	July 31
July to September	October 31
October to December	January 31 (of the following year.)

Manual Preparation:

If you do not use IFTA preparation software, you will need

• all of the fuel purchase receipts from the previous quarter.
• a record of miles per state/province driven
• the current tax rates for each state/province
• a calculator
• a large cup of coffee and (optional) aspirin.

You will need to calculate

• the taxes paid per state at the fuel pump,
• the miles per state driven, regardless of load or purpose
• how many miles per gallon your vehicle averages.

Electronic Preparation:

There are three methods of electronic preparation: spreadsheets, IFTA only software, and trucking management software.

Spreadsheets are one step up from manual preparation. Fuel purchase records and miles per state are stored for macros and formulas to compute.

IFTA only software programs work in a variety of ways. Some require the trucker to enter the data, others want only the totals (expecting the driver to do the math.) If the data is stored in another program, reentering it will be necessary.

Trucking management software (TMS) offer IFTA reports based on expenses already entered into the program. It doesn’t require extra data entry. The miles per state may be tracked manually or they may be tracked by an ELD. The TMS will produce an IFTA report.

Log Into Your Base Jurisdiction’s IFTA Portal

Submit the data as required by the online form. You will be expected to pay the tax due at this time.

You might be owed a refund by one or more of the states you drive through, due to a principle in the agreement known as “fuel tax equalization.” In order to receive all refunds that are due to you, be certain to keep complete and accurate records of the mileage logged in each state as well as the amount of fuel purchased in each one.

Do I have to file IFTA if I didn’t drive this quarter?

Yes. Most states have a “No Driven Miles” option on the first page of their report form.

Renewals

Your IFTA decals expire every year on the 31st of December. Carriers have until the end of February of the next year to re-register.

 

Does This Sound Confusing? You Are NOT Alone

If all of this sounds confusing to you, then you’re not alone. That’s why we developed TruckingOffice—powerful IFTA software that makes fuel tax reporting a simple process. TruckingOffice automatically calculates and records mileage for each dispatch, and has an easy-entry screen for fuel receipts. Your IFTA report is compiled and totaled automatically—no math involved! Our IFTA fuel tax software saves you time, and increases the accuracy of your reports so you don’t overpay. We’d be delighted to show you how we can make not only your IFTA reports but also the other aspects of your business run smoother.

Try TruckingOffice for free!  We’ll give you a free trial to discover the power of a complete trucking managment software, starting with this quarter’s IFTA report.