Just getting started in your new owner-operator trucking business? Welcome to the world of logistics and transportation! There’s a lot to learn when you own your own business and one of the first lessons is taxes. IFTA taxes. IRP taxes. That’s why you’re going to need a new tax calculator that can handle both.
IFTA or IRP? Does that make any sense to you?
It doesn’t make any sense to us. The numbers you use to calculate your trucking fuel taxes are exactly the same as the numbers you use for your IRP apportioned license plates. So why would you use two different products?
If you’re new to the trucking business, you’re probably not new to the transportation industry. You’ve probably heard truckers gripe about IFTA – the quarterly payment for fuel taxes for places you didn’t buy fuel.
Yeah, that doesn’t make a lot of sense, until you think about poor Indiana. All those truckers who buy fuel in Ohio and then again in Illinois – but drove through Indiana and didn’t pay a cent of taxes. Without those tax dollars, Indiana can’t keep up the roads.
Essentially, that’s what IFTA and IRP do. They spread out the money – so you don’t have to. You make one payment and they handle the rest.
It’s figuring out that one payment that’s the pain in our necks.
New IFTA Calculator?
You need an IFTA calculator. It’s just that simple. Sure, you may hear about people who do it all with Google spreadsheets to save themselves some money. But think about that for a minute – what are they really saving?
Google may be free – but spending time on the spreadsheet is not. It’s taking money out of your pocket by keeping you off the road while you play computer programmer. You have to break out all of your miles per state – that’s not a simple calculation. Likewise, you have to have all your fuel receipts and know the tax rates you paid and the new ones that now apply. You might make the spreadsheet do the heavy lifting with all the math – but that’s only after you do all that other work first.
If you’re new to trucking, get started the smart way. Use a good, reliable, and regularly updated IFTA calculator.
But why stop there?
If your IFTA taxes are figured on the same numbers that your IRP will be figured on, why not use a program that does both?
What Are the Consequences of Failing to File IFTA Reports?
Do you know the consequences of failing to file IFTA quarterly reports? Here’s why it’s crucial to stay on top of IFTA reporting dates:
IFTA filing dates for 2021 are:
- – 1st quarter: January – March. Due by April 30.
- – 2nd quarter: April – June. Due by July 31.
- – 3rd quarter: July – September. Due by October 31.
- – 4th quarter: October – December. Due by January 31.
If the due date falls on a weekend or holiday, the next business day is acceptable. To avoid fines or penalties, be sure paper reports are postmarked by the due date.
The consequences of failing to file can be severe and may include:
- – A flat rate for late filing is $50 or 10% of the taxes due, whichever is greater.
- – Monthly interest starts the month after the original penalty. The rate is 0.4167% of the tax due.
- – An administrative fee of $100 for first-time late filing. A $500 fee for the second time. A $1,000 fee for the third time (includes an increment of $500 for additional late filings).
- – Underpayment penalties are 0.4167% of the unpaid amount charged monthly until you pay the tax.
- – Delayed payments can affect license renewal.
New to the Trucking Business? Welcome to the Business of Trucking!
The business end of trucking requires a lot of paperwork. You’ll not only have to manage your taxes, you will also need to bill your customers, track their payments (or non-payments), manage your truck’s maintenance, create complete records of each trip… there’s a lot of work behind the truck business.
Since you’re new, don’t try to do it yourself. You need the right tools to do it right. Use a complete trucking management software that will handle all of it – not just your taxes.
You’re not saving money by skimping on the one product that can keep you profitable. When you buy the right trucking management software, you’re investing in your success. It’s not a waste, it’s not a stupid expense; it’s as necessary as your tires to keep your business on the road.
So get started right. TruckingOffice TMS was designed for you – the independent trucker who needs the basics but needs them done right. Our comprehensive trucking management software is the solution you need for your new trucking business. From dispatches to invoices to payments, from routing to delivery, TruckingOffice has the software you need to manage your trucking business, so you can be in a successful trucking business.
Give TruckingOffice a test drive – for free. We’ll let you see all the parts of TruckingOffice’s complete software solution for truckers – not just some of them, like the other software companies might do. We’ll give you time to check us out and even do your last quarter’s IFTA for free! Sign up today and get started on the road to trucking business success!
If you have more questions about IFTA, you can check out our IFTA Resource Page.