ExpressIFTA Blog

Tuesday, August 21, 2012

Be Prepared for an IFTA Audit

Base jurisdictions are required to audit 3% of the IFTA accounts that are required to report per year, excluding new accounts.  You can prepare yourself by keeping accurate records.
Supporting Documents Required:
1. Completed copy of a driver trip record or trip sheet from one of the 12 most  recent quarters.


    • Date of the trip (starting and ending)
    • Trip origin and destination
    • Route of travel and/or beginning and ending odometer or hubometer reading of the trip
    • Total trip miles or kilometers
    • Miles/kilometers by jurisdiction
    • Unit number or vehicle identification number
    • Vehicle fleet number
    • Registrant's name
    • Trailer number
    • Driver’s signature and/or name
    • Fuel Purchases

2. Copy of an actual Over-the-Road fuel receipt.
3. Completed copy of a bulk fuel withdrawal log, if applicable.
4. Copy of monthly or quarterly summary, if applicable.
5. Detailed equipment list including the make, model, and gross weight for IFTA qualified units.

Your Distance Records should include taxable and non-taxable fuel use, distance traveled for each, and distance traveled in each jurisdiction.

Fuel Records should include date of receipt, name and address where fuel was purchased, number of gallons purchased, and fuel type.  Separate records must be kept for each fuel type and bulk fuel purchases.  If you operated under a trip permit, keep a copy of that permit and do not record those fuel purchases on your IFTA report.

You want to be sure that your reports are accurate and legible, including your fuel receipt copies.  All information needs to be complete with no gaps between mileage. Incomplete, inconsistent or illegible records may require you to produce secondary documents.

You are required to keep your records for 4 years from the return due date or filing date, whichever is later, plus any time period included as a result of waivers or jeopardy assessments.

If a licensee fails to provide the required records for audit, the 4 year retention requirement is extended until the required records are provided.

It is well worth the time to get a good recordkeeping system in place and to maintain those records on a consistent basis.  This is vital in determining how the audit process will play out, should you ever find yourself in that situation.

ExpressIFTA is an industry leader offering truck tax solutions with the best value and pricing in the trucking industry. With ExpressIFTA entering your mileage and fuel details has never been easier. There is no cost to sign up and there are no monthly fees or contracts with ExpressIFTA.
Our program provides accurate fuel tax calculation and we support all 48 states that participate in IFTA.  This will eliminate the most common errors that occur with the IFTA Quarterly Tax Return, which are mistakes in math calculations. Our simple entry for odometer readings and the ability to maintain distance and fuel records online, makes it easy to keep track of your mileage and fuel purchases.  If you have any questions, please contact our US based customer support team in Rock Hill, SC at 704-234-6005 or email us at support@ExpressIFTA.com.

Read More »

Friday, August 17, 2012

Understanding IFTA Fuel Tax

What is IFTA?
IFTA is the International Fuel Tax Agreement and is a tax collection agreement by and among the 48 contiguous States and the 10 Canadian Provinces bordering the US, in which motor fuels use taxation laws are uniform with respect to qualified motor vehicles operated in more than one member jurisdiction. 

Who Must File?
An interstate motor carrier operating "qualified motor vehicles" between at least 2 member jurisdictions (The 48 contiguous states of the US and 10 Canadian provinces) must have an international fuel tax agreement (IFTA) license and decals issued by their base jurisdiction.

If you have the IFTA license, you must file the Quarterly IFTA Return to your base jurisdiction.

Qualified motor vehicle means a motor vehicle or combination of vehicles used, designed, or maintained for the transportation of persons or property having:
1. Two axles and a gross vehicle weight exceeding 26,000 pounds;
2. Two axles and a registered weight exceeding 26,000 pounds;
3. Three or more axles regardless of weight; or
4. A combination weight exceeding 26,000 pounds.

Recreational vehicles are exempt from IFTA fuel taxreporting.

Base jurisdiction means the member jurisdiction where:
1. Qualified motor vehicles are based for vehicle registration purposes;
2. Operational control and operational records of the licensee’s qualified motor vehicles are maintained or can be made available in case of an audit; and
3. Some mileage is accrued by qualified motor vehicles within the fleet travelling through that jurisdiction.
What is required?
 The following information is required on the IFTA quarterlytax return:
1. Total miles, taxable and nontaxable, traveled by the licensee’s qualified motor vehicles in all jurisdictions, IFTA and non-IFTA, including trip permit miles;
2. Total gallons of fuel consumed, taxable and nontaxable, by the licensee’s qualified motor vehicles in all jurisdictions, IFTA and non-IFTA;
3. Total miles and taxable miles traveled in each member jurisdiction;
4. Taxable gallons consumed in each member jurisdiction;
5. Tax-paid gallons purchased in each member jurisdiction; and
6. Current Tax Rates for each member jurisdiction. 

When to File?
Under IFTA, you are required to file Quarterly Fuel TaxReturns. IFTA Returns are due on the last day of the month following the end of each calendar quarter. To avoid penalty for late filing, the tax reports must be postmarked no later than midnight on the date indicated. If the last day of the month falls on a Saturday, Sunday or legal holiday, the next business day will be considered as filed timely. A quarterly fuel tax return must be filed even if the no fuel was used.  You submit a “zero” report.
Read More »

Thursday, August 16, 2012

Benefits of ExpressIFTA (Fuel Taxes Online)

We are an industry leader offering truck tax solutions with the best value and pricing in the trucking industry. With ExpressIFTA entering your mileage and fuel details has never been easier. Our program is easy to use and there is no cost to sign up and there are no monthly fees or contracts with ExpressIFTA.

Our program provides accurate fuel tax calculation and we support all 48 states that participate in IFTA. This will eliminate the most common errors that occur with the IFTA Quarterly Tax Return, which are mistakes in math calculations. Our simple entry for odometer readings and the ability to maintain distance and fuel records online makes it easy to keep track of your mileage and fuel purchases.

If you already use Express Truck Tax to file your Form 2290, there’s no need to set up another account. When you log into your ExpressTruckTax account, you will see an IFTA button at the top of the page. Select this option, and click Go to IFTA. This will automatically register you with an ExpressIFTA Account. To Get Started, Click Begin. If you have not yet used our program, simply create 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.

If you have any questions along the way, please contact our live US based customer support team in Rock Hill, SC at 704-234-6005 or email us at support@ExpressIFTA.com.
Read More »

Monday, August 13, 2012

IFTA Fuel Tax FAQs (Frequently Asked Questions)

Q. What is IFTA?
IFTA is the International Fuel Tax Agreement. This is an agreement between the 48 contiguous US states and 10 Canadian provinces in place to report and maintain fuel taxes.

Q. Who qualifies for an IFTA license?
You will need an IFTA license and you must file fuel tax returns if you travel in two or more member jurisdictions and your vehicle weighs more than 26,000 pounds or if the vehicle has three or more axles regardless of the weight.

Q. Why should I register for IFTA?
IFTA offers several advantages to interstate motor carriers who operate in two or more member states or provinces. Under IFTA, you will:

Choose one IFTA-member state or province as a "base jurisdiction",

Obtain a single fuel tax license for all of your qualified motor vehicles, authorizing them to travel in all IFTA jurisdictions; and file only one tax report each quarter with your base jurisdiction, reporting your fuel usage and mileage for all IFTA member states and provinces. Your fuel tax records will generally be audited only by your base jurisdiction.

Q. Which taxes does IFTA cover?
IFTA covers fuel taxes only. It does not cover road taxes, weight mileage taxes, or any other jurisdiction specific taxes. You must continue to pay these taxes directly to the jurisdictions in which you travel.

Q. Which fuels does IFTA cover?
Under IFTA, you must generally report information on all fuels used to power your qualified motor vehicles. However, reporting requirements for fuel used in each jurisdiction are based on that specific jurisdiction's laws and may vary.

Q. What are the fuel tax rates for IFTA jurisdictions?
You may view, print, or download the fuel tax rates for all IFTA jurisdictions at http://www.iftach.org.

Q. What fees must I pay under IFTA?
The fees vary from state to state; check your state for their specific fee.

Q. What credentials will I receive?
You will receive one IFTA license for your business and two decals for each qualified motor vehicle in your fleet. One decal must be placed on the exterior portion of the cab's passenger side. The second decal must be placed in the same position on the driver's side. Decals are obtained annually at the time of renewal for all qualified motor vehicles. You are required to make copies of the license so that one copy is carried in each qualified motor vehicle.

Q. When are IFTA reports due?
Under IFTA, you are required to file quarterly fuel tax reports. The reporting quarters and due dates are:


Reporting Quarter
Due Date
January - March
April 30
April - June
July 31
July - September
October 31
October - December
January 31

To avoid penalty for late filing, the tax reports must be postmarked no later than midnight on the date indicated. If the last day of the month falls on a Saturday, Sunday or legal holiday, the next business day will be considered as filed timely.

Q. Do I file a quarterly fuel tax report if I didn't run during the quarter?
Yes, you must submit a "zero" report even if no taxable fuel was used.

Q. What is the penalty and interest rate for filing a late quarterly fuel tax report?
A penalty of $50.00 or 10% of the net tax liability, whichever is greater, will be assessed on late-filed reports, failure to file, or for underpayment of tax due. If the net tax liability is zero or a credit, the late filing penalty will still be $50.00. To avoid penalty for late filing, the tax reports must be postmarked no later than midnight on the date indicated. If the last day of the month falls on a Saturday, Sunday or legal holiday, the next business day will be considered as filed timely.

Interest is assessed on all delinquent taxes due each jurisdiction. The interest rate is 1% per month. Interest will be calculated from the date the tax was due for each month or fraction of a month until paid.

Q. How do I obtain a return?
Most states furnish reports each quarter indicating the current tax rates for each member jurisdiction. Failure to receive the tax report does not relieve you from the obligation of filing in a timely manner or submitting the reports.

Q. What records will I need?
You must maintain records that will adequately document all of the information you provide on your quarterly fuel tax reports. You must document all miles you travel - including the date of your trip, route of travel, total trip miles, and miles traveled in each jurisdiction. You must also keep all receipts for fuel you buy and place into your vehicles. If you maintain a bulk fuel storage facility, you must maintain additional records.

If you have any questions, please contact our US based customer support team in Rock Hill, SC at 704-234-6005 or email us at support@ExpressIFTA.com.
Read More »

Friday, August 10, 2012

IFTA Fuel Tax Licensing and Reporting

The IFTA license offers several benefits to the interstate/inter-jurisdictional motor carrier. These benefits include one license, one set of decals per vehicle, one quarterly fuel tax report for all vehicles that reflects the net tax or refund due. 

In order to obtain and IFTA license and decals you must submit an application to your base jurisdiction. The process varies from state to state, so check your base state to determine the exact process.

Under the IFTA requirements, payments are made to the home office in which the office will distribute payments through other home bases. For your vehicle to qualify you must travel to and from two IFTA jurisdictions. 

You must also have gross weight and that weight must be registered; and it must combine the gross weight in excess of 26k pounds or have three or so axles on power units despite of its gross weight; or it must be a bus that is made to carry up to 20 or more passengers.

Tax returns are required even if no operations were conducted or no taxable fuel was used during the reporting period. Returns that are not filed or not paid in full are considered late and will be assessed penalty and interest.  Many people dread the thought of having to file their quarterly IFTA return but with ExpressIFTA you can quickly and easily keep track of your mileage, fuel purchases and more at no charge. 

Entering your mileage and fuel details has never been easier with our quick entry system. There is no cost to sign up and there are no monthly fees or contracts with ExpressIFTA. You pay only when we prepare your IFTA fuel tax return.

You can log your trips as you run them, so you don’t have to spend hours doing it at the end of the quarter. Our program will do all the calculations for you; all you have to is plug in the data. ExpressIFTA makes fueltax reporting less taxing!

To get started simply create an account and begin entering your trip sheet information, that’s it! If you have any questions along the way, please do not hesitate to contact our friendly US-based Truck Tax Team at 704.234.6005 or email us at support@expressifta.com.
Read More »

Thursday, August 9, 2012

Why File IFTA Fuel Tax with Express IFTA?

We are an industry leader offering truck tax solutions with the best value and pricing in the trucking industry. With ExpressIFTA entering your mileage and fuel details has never been easier. There is no cost to sign up and there are no monthly fees or contracts with ExpressIFTA.

Our program provides accurate fuel tax calculation and we support all 48 states that participate in IFTA. This will eliminate the most common errors that occur with the IFTAQuarterly Tax Return, which are mistakes in math calculations. Our simple entry for odometer readings and the ability to maintain distance and fuel records online makes it easy to keep track of your mileage and fuel purchases.

If you already use Express Truck Tax to file your Form 2290, when you log into your ExpressTruckTax account, you will see an IFTA button at the top of the page. Select this option, and click Go to IFTA. This will automatically register you with an ExpressIFTA Account. 

To Get Started, Click Begin. If you have not yet used our program, simply create 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.

If you have any questions along the way, please contact our live US based customer support team in Rock Hill, SC at 704-234-6005 or email us at support@ExpressIFTA.com.
Read More »

Wednesday, August 8, 2012

IFTA Fuel Tax Return Filing Made Easy

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. The most common error on an IFTA Quarterly Tax Return is mistakes in math calculations. ExpressIFTA.com has made the process of completing trip sheets and entering fuel purchases much easier and more accurate. ExpressIFTA allows you to create an IFTA return online in minutes!

If you already use Express Truck Tax to file your Form 2290, when you log into your ExpressTruckTax account, you will see an IFTA button at the top of the page. Select this option, and click Go to IFTA. This will automatically register you with an ExpressIFTA Account. To Get Started, Click Begin. If you have not yet used our program, simply create 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.

You will be able to complete this form online through our program within minutes and send it to your base jurisdiction. If you have any questions, please contact our US based customer support team in Rock Hill, SC at 704-234-6005 or email us at support@ExpressIFTA.com.
Read More »

Tuesday, August 7, 2012

Getting Started With Trip Sheets for IFTA Fuel Tax

 
What is IFTA?
IFTA is the International Fuel Tax Agreement and is a tax collection agreement by and among the 48 contiguous States and the 10 Canadian Provinces bordering the US, in which motor fuels use taxation laws are uniform with respect to qualified motor vehicles operated in more than one member jurisdiction.

Use Trip Sheets to enter your miles traveled and fuel purchased to complete your quarterly IFTA Return.

ExpressIFTA made complicated Form easy. Prepare your IFTA return online with ExpressIFTA. If you have any questions call our customer support team at 704.234.6005 or email us at support@expressifta.com.
Read More »

Monday, August 6, 2012

Understanding Your IFTA Fuel Tax Responsibilities

What is IFTA?
IFTA is the International Fuel Tax Agreement and is a tax collection agreement by and among the 48 contiguous States and the 10 Canadian Provinces bordering the US, in which motor fuels use taxation laws are uniform with respect to qualified motor vehicles operated in more than one member jurisdiction.

Who Must File?
An interstate motor carrier operating "qualified motor vehicles" between at least 2 member jurisdictions (The 48 contiguous states of the US and 10 Canadian provinces) must have an international fuel taxagreement (IFTA) license and decals issued by their base jurisdiction.

Qualified motor vehicle means a motor vehicle or combination of vehicles used, designed, or maintained for the transportation of persons or property having:

Two axles and a gross vehicle weight exceeding 26,000 pounds;
Two axles and a registered weight exceeding 26,000 pounds;
Three or more axles regardless of weight; or
A combination weight exceeding 26,000 pounds.
Recreational vehicles are exempt from IFTA fuel tax reporting.
Base jurisdiction means the member jurisdiction where:
Qualified motor vehicles are based for vehicle registration purposes;
Operational control and operational records of the licensee’s qualified motor vehicles are maintained or can be made available in case of an audit; and
Some mileage is accrued by qualified motor vehicles within the fleet travelling through that jurisdiction

What is required?
The following information is required on the IFTA quarterlytax return:
Total miles, taxable and nontaxable, traveled by the licensee’s qualified motor vehicles in all jurisdictions, IFTA and non-IFTA, including trip permit miles;
Total gallons of fuel consumed, taxable and nontaxable, by the licensee’s qualified motor vehicles in all jurisdictions, IFTA and non-IFTA;
Total miles and taxable miles traveled in each member jurisdiction;
Taxable gallons consumed in each member jurisdiction;
Tax-paid gallons purchased in each member jurisdiction; and
Current Tax Rates for each member jurisdiction.

When to File?
Under IFTA, you are required to file Quarterly Fuel Tax Reports. The reporting quarters and due dates are:

Reporting Quarter
Due Date
January - March
April 30
April - June
July 31
July - September
October 31
October - December
January 31


To avoid penalty for late filing, the tax reports must be postmarked no later than midnight on the date indicated. If the last day of the month falls on a Saturday, Sunday or legal holiday, the next business day will be considered as filed timely. A quarterly fuel tax return must be filed even if the no fuel was used. You submit a “zero” report.

You also have to renew your IFTA decals, annually. Most states mail out the renewal papers, but it is your responsibility to renew. All quarterly returns must have been filed and all taxes must be paid in full in order to renew.

How to File?
Some states offer online filing for quarterly filing, while others require paper filing. Check your state requirements. ExpressIFTA made complicated Form easy. Just create an account with ExpressIFTA and file Quarterly IFTA Fuel Tax Return, if you have any questions call our customer support team at 704.234.6005 or email us at support@expressifta.com.
Read More »

Friday, August 3, 2012

Penalties for not filing your Quarterly IFTA Fuel Tax Return

Failure to file a IFTA Fuel Tax return, filing a late return, or failure to remit any or all tax due will result in a penalty of $50.00 or 10% of the net tax due to all member jurisdictions, whichever is greater. Interest is computed on all delinquent taxes dues each jurisdiction at a rate of 1% per month.

Even if you have a net refund, interest still applies to each jurisdiction for any underpayment of fuel use tax to that jurisdiction and is calculated beginning the day after the due date of the return for each month, or fraction of a month, until paid. So the longer you are late, the more you will owe.

The deadline for 2nd quarter IFTA returns was July 31st, so if you have not yet filed your return, you will want to file it not to avoid further interest.  ExpressIFTA has made a complicated tax form easy. To get started simply create an account and begin entering your trip sheet information, that’s it! If you have any questions along the way, please do not hesitate to contact our friendly USA-based IFTA Fuel Tax Team at 704.234.6005 or email us at support@expressIFTA.com.
Read More »

Thursday, August 2, 2012

IFTA Fuel Tax Reporting Made Easy

July 31st was the deadline to file your 2nd Quarter IFTA return. If you did not file your return you will want to do it immediately to avoid further penalties and/or interest.

ExpressIFTA is here to take the hassle out of preparing your IFTA fuel tax return. Many people dread the thought of having to file their quarterly IFTA return but with ExpressIFTA you can quickly and easily keep track of your mileage, fuel purchases and more at no charge. Entering your mileage and fuel details has never been easier with our quick entry system. There is no cost to sign up and there are no monthly fees or contracts with ExpressIFTA. You pay only when we prepare your IFTA fuel tax return.

You can log your trips as you run them, so you don’t have to spend hours doing it at the end of the quarter. Our program will do all the calculations for you; all you have to be plug in the data. ExpressIFTA makes fuel tax reporting less taxing!

To get started simply create an account and begin entering your trip sheet information, that’s it! If you have any questions along the way, please do not hesitate to contact our friendly USA-based Tax Team at 704.234.6005 or email us at support@expressifta.com.
Read More »

Wednesday, August 1, 2012

Odometer Entries for IFTA Fuel Taxes

 

IFTA Fuel Taxes: 
The International Fuel Tax Agreement, or IFTA, represents a tax collection agreement by and among the 48 contiguous United States and the 10 Canadian Provinces bordering the United States. IFTA is a quarterly tax on qualified highway motor vehicles that operate in at least 2 out of the 58 total jurisdictions

Learn how to add odometer entries for IFTA Fuel Taxes using www.ExpressIFTA.com. If you have any questions please feel free to call our customer support team at 704.234.6005 or email us at support@expressifta.com.
Read More »

Support Center

FAQ