ExpressIFTA Blog

Thursday, April 26, 2012

Prepare Your IFTA Calculations for the First Quarter of 2012

The International Fuel Tax Agreement requires all qualified motor vehicles to file an IFTA return each quarter if the qualifying heavy vehicles were operating in at least 2 of the IFTA member jurisdictions. 

Note: The IFTA jurisdictions include the 48 contiguous states of the US and 10 Canadian provinces. 

Vehicles operating within these jurisdictions must have an IFTA license and file a quarterly IFTA return with their base jurisdiction.  A vehicle’s base jurisdiction is the state or province in which the vehicle is registered.

ExpressIFTA.com has made the process of completing trip sheets and entering fuel purchases much easier.  ExpressIFTA allows you to create an IFTA return online in minutes! 

After creating an account with ExpressIFTA, all you need to do is enter basic information about the filing party such as contact information and EIN.  You will also be asked to enter your base jurisdiction and IFTA license number. 

Once the business information is entered, you can select the units of measurement that you will be using (such as miles, kilometers, gallons, liters, etc.).  For the vehicles on the IFTA return a unit number, gross weight, vehicle type, fuel type, and VIN number can be entered. 

To enter the mileage into the system, it can be entered manually, or an excel file can be uploaded to automatically record this.  Using the excel upload can significantly cut down on the amount of time that it takes to submit this information.  If you have records of your trips and would like to enter them manually, all that is needed is the State, Odometer reading, and amount of fuel purchased for each trip.

The system will then run a diagnostic report to review any possible errors on the IFTA return based on the estimated Miles Per Gallon.  This audit of information does not guarantee that the IFTA return will be accepted.  It simply checks for basic errors that could have otherwise been overlooked. 

The best part about organizing the IFTA return online is that our system automatically calculates the amount due based on all of the previous data entered.  There is no need to get frustrated over complicated tax calculations. 

Filing this form online only takes a few minutes. Although the quarterly deadline is approaching, you will still be able to complete this form through our service and send it to your base jurisdiction.  If you have any questions, please contact us at our USA-based customer support center in Rock Hill, SC at 704-234-6005 or email us at mailto:support@ExpressIFTA.com.
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Wednesday, April 25, 2012

IFTA (International Fuel Tax Agreement) Information

Owners of qualified heavy highway motor vehicles that operate in at least 2 out of the 58 total jurisdictions must file IFTA on a quarterly basis. The abbreviation: “IFTA” is short for International Fuel Tax Agreement, which represents a tax collection agreement among the 48 contiguous United States and its 10 bordering Canadian Provinces.  

Qualifying Highway Motor Vehicles:
Any vehicle is considered to be a qualified motor vehicle if it is used, designed, or maintained for the purpose of transportation of persons or property and has a registered gross vehicle weight of more than 26,000 pounds. Also, any vehicle with 3 axles or more is considered to be a qualified motor vehicle regardless of weight. Finally, if the combined weight of all of its parts is greater than 26,000 pounds, it is also considered to be a qualified motor vehicle.

IFTA Process:
Each state or province has a different rate and those rates can change each quarter. The state or province in which the vehicle is registered is considered to be its Base Jurisdiction. IFTA must be filed with the vehicle’s respective jurisdiction each quarter. Every driver must keep a trip log of how many miles are traveled in each state or province, as well as how much fuel was purchased in each state or province. This information can be kept on what are commonly referred to as trip sheets, or trip logs.

Reasons for IFTA:
IFTA’s official purpose according to the International Fuel Tax Agreement is “to promote and encourage the fullest and most efficient possible use of the highway system by making uniform the administration of motor fuels use taxation laws with respect to qualified member vehicles operated in multiple member jurisdictions.” When an IFTA form is filed with the appropriate jurisdiction, The Fuel Tax Report is then used to determine the tax amount due as well as the refund due. 

It is also used for redistributing collections from the jurisdictions that received IFTA payments, and the jurisdictions that deserved some. One of the reasons for the Fuel Tax is to ensure that a vehicle pays taxes to all deserving jurisdictions. For Example: if a vehicle travels through a state, but buys no gas while in that state, then there was no fuel tax paid to that state through the purchase of gasoline. Part of their tax would then be redistributed to the state that received no fuel tax through the purchase of gasoline.

Get IFTA Organized:
Since the data required filing IFTA is so incredibly detailed, many people receive Audits of their IFTA information. The sadness of this is that this can be prevented by better record keeping. ExpressIFTA, along with providing a terrific service for other Truck Tax needs, will perform an internal audit of your IFTA information for you. In this internal audit performed by ExpressIFTA.

ExpressIFTA.com will check for basic mistakes and discrepancies, as well as perform a state adjacency check and an abnormal MPG audit. They also provide online trip sheets for drivers to keep accurate records that can be accessed from any computer, anywhere!  If you can prevent an audit due to simple mistakes on an IFTA return, it makes no sense not to let ExpressIFTA help you get it right the first time.

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What is IFTA(International Fuel Tax Agreement)?


The term IFTA is short for International Fuel Tax Agreement, which represents a tax collection agreement among the 48 contiguous United States and its 10 bordering Canadian Provinces.  IFTA is filed on a quarterly basis for qualified highway motor vehicles that operate in at least 2 out of the 58 total jurisdictions.  


Who Must File IFTA?

Any vehicle is considered to be a qualified motor vehicle if it is used, designed, or maintained for the purpose of transportation of persons or property and has a registered gross vehicle weight of more than 26,000 pounds. Also, any vehicle with 3 axles or more is considered to be a qualified motor vehicle regardless of weight. Finally, if the combined weight of all of its parts is greater than 26,000 pounds, it is also considered to be a qualified motor vehicle.


How Does IFTA Work?

The state or province in which the vehicle is registered is considered to be its Base Jurisdiction.  IFTA must be filed with the vehicle’s respective jurisdiction each quarter. Each state or province has a different rate and those rates can change each quarter. Every driver must keep a trip log of how many miles are traveled in each state or province, as well as how much fuel was purchased in each state or province.  


The Purpose of IFTA

According to the International Fuel Tax Agreement, its purpose is “to promote and encourage the fullest and most efficient possible use of the highway system by making uniform the administration of motor fuels use taxation laws with respect to qualified member vehicles operated in multiple member jurisdictions.” When an IFTA form is filed with its appropriate jurisdiction, The Fuel Tax Report is then used to determine the tax amount due as well as the refund due. It is also used for redistributing collections from the jurisdictions that received IFTA payments, and the jurisdictions that deserved some. 

One of the reasons for the Fuel Tax is to ensure that a vehicle pays taxes to all deserving jurisdictions. For Example: if a vehicle travels through a state, but buys no gas while in that state, then there was no fuel tax paid to that state through the purchase of gasoline. Part of their tax would then be redistributed to the state that received no fuel tax through the purchase of gasoline.


Organizing IFTA

Since the data required filing IFTA is so incredibly detailed, many people receive Audits of their IFTA information. The sadness of this is that this can be prevented by better record keeping.   ExpressIFTA, along with providing a terrific service for other Fuel Tax needs, will perform an internal audit of your IFTA information for you. In this internal audit performed by Express IFTA Tax, it will check for basic mistakes and discrepancies, as well as perform a state adjacency check and an abnormal MPG audit. They also provide online trip sheets for drivers to keep accurate records that can be accessed from any computer, anywhere!  If you can prevent an audit due to simple mistakes on an IFTA return, it makes no sense not to let Express IFTA help you get it right the first time.

Read More »

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