ExpressIFTA Blog

Wednesday, October 31, 2012

Penalties for not filing your Quarterly IFTA Return


The deadline to file 3rd Quarter IFTA Return is today!! You have to file a return even if you did not run during the quarter.  You would just file a “zero” report.

Failure to file a 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 fuels 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 3rd quarter IFTA returns is today, October 31st, so if you have not yet filed your return, you will want to file it now to avoid penalties and 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 US based Truck Tax Team at 704.234.6005 or email us at support@expresstrucktax.com.
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Tuesday, October 30, 2012

IFTA FAQ’s


The deadline to file 3rd Quarter IFTA Returns is TOMORROW, Wednesday, October 31, 2012.  Here are some of the common questions about IFTA.


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.

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.

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.


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.

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.

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.

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

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.

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.

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.

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.

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.

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.

My IFTA License expires December 31, but I've heard there is an extension until February 28. Is this true?
Yes. You have until March 1 of each year to carry a current IFTA license and display the current year's decals on your vehicles, provided you have applied on time to renew your IFTA license.

To get started simply create an account at ExpressIFTA.com and begin entering your trip sheet information. 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.
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Monday, October 29, 2012

Benefits of Using ExpressIFTA

ExpressIFTA is an industry leader offering truck tax solutions with the best value and pricing in the trucking industry.
ExpressIFTA benefits:


    • Easy to use
    • No cost to sign up and there are no monthly fees or contracts
    • Provides accurate fuel tax calculation
    • Supports 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.
    • You can use ExpressIFTA right from your Express Truck Tax 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.
    • Option to enter mileage manually or uploading an excel file
    • System runs 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.
    • 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.
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      Friday, October 26, 2012

      Tips To Help You File 3rd Quarter IFTA Return

      The deadline to file your 3rd Quarter IFTA Return is next Wednesday, October 31, 2012. A Quarterly IFTA Tax Return must be filed even if the licensee does not operate or purchase any taxable fuel in an IFTA member jurisdiction during the specific quarter.

      You will need to separate your mileage and fuel records for each fuel type.

      If you travel in New York, Kentucky, New Mexico, or Oregon you will also need to file their Weight Distance Tax Return.

      What you need:

      1. Mileage log-whether you use manual trip sheets, GPS, or electronic trip sheets; it is not only necessary to have in order to file your quarterly IFTA Return, but you will need these if you are ever audited.
      2. Fuel Receipts-you will need to know how many gallons of fuel were purchased in each state.

      Options to prepare and file your return:

      1. Doing it yourself, you can calculate your own return by hand and mail or e-file the return. To find out the current tax rate for each state go to http://www.iftach.org.
      2. Using a software program that will calculate your return for you, like ExpressIFTA.com, which will reduce the chances of miscalculations?
      3. Paying someone else to do it, you can use a CPA or a process agent, like Truck Services of North America and let them take care of preparing and filing the return for you.

      Regardless of the method you choose to file your quarterly IFTA tax return, it is crucial to maintain accurate records and file your returns by the October 31st deadline to avoid penalties. To find out more about IFTA filing or get started today, contact our friendly US based customer support team in Rock Hill, SC at 704-234-6005 or email us at support@ExpressIFTA.com.
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      Wednesday, October 24, 2012

      What You Need to File 3rd Quarter IFTA Return

      The deadline to file your 3rd Quarter IFTA return of October 31, 2012 is fast approaching.  Prepare now to avoid rushing around at the last minute.

      What is Required?
      The following information is required on the IFTA quarterly tax 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.

      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.

      To get started simply create an account and begin entering your trip sheet information. If you have any questions along the way, please do not hesitate to contact our friendly US based IFTA Fuel Tax Team at 704.234.6005 or email us at support@expressIFTA.com.
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      Monday, October 22, 2012

      Reminder to Renew Your IFTA Decals

      IFTA is the International Fuel Tax Agreement between the 48 contiguous States and 10 Canadian Provinces, where the member jurisdictions act cooperatively to administer and collect motor fuel use taxes.

      The purpose of IFTA is to establish and maintain the concept of one fuel use license and one administering base jurisdiction for each license holder (licensee). Under IFTA, you only have to report to one state and the state allocate the fuel tax payments.  For more details see http://www.iftach.org.

      The IFTA license is renewed annually and due December 31, 2012.  Some states may have already mailed renewal papers out, others will be doing so soon.  Be aware that some states no longer mail out renewal papers.  The renewal process varies from state to state with some states offering online renewal and others require electronic renewals.

      If you do not receive renewal papers in the mail, it does not mean you do not have to renew.  You are still responsible to renew your IFTA license by the December 31st deadline.  Renew your IFTA license on time to avoid possible penalties.
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      Friday, October 19, 2012

      NY HUT Renewals

      On October 1, 2012 the renewal period began for the New York State imposed a highway use tax (HUT) on motor carriers operating certain motor vehicles on New York State public highways (excluding toll-paid portions of the New York State Thruway). The tax is based on mileage traveled on NYS public highways and is computed at a rate determined by the weight of the motor vehicle and the method that you choose to report the tax.  The deadline to renew is December 31, 2012. Beginning January 1, 2013, you must affix a decal to each vehicle that's required to have a certificate of registration.

      Vehicle registration requirements
      You must obtain a certificate of registration for each vehicle subject to HUT. There are two types:

      • A HUT certificate of registration is required for any truck, tractor, or other self-propelled vehicle with a gross weight over 18,000 pounds. (If you elect to use the unloaded weight method to file your returns, a certificate is required for any truck with an unloaded weight over 8,000 pounds and any tractor with an unloaded weight over 4,000 pounds.)
      • An automotive fuel carrier (AFC) certificate of registration is required for any truck, trailer, or semi-trailer transporting automotive fuel. (The same gross weight and unloaded weight rules apply.)

      You are also required to file your quarterly highway use tax return.  The 3rd quarter ended on September 30, 2012 and the deadline to file is October 31, 2012.  With ExpressIFTA, you have the ability to maintain distance and fuel records online to keep track of your mileage and fuel purchases.  You will have the records you need to file your NY HUT taxes.

      To find out more or get started today, contact our friendly US based customer support team in Rock Hill, SC at 704-234-6005 or email us at support@ExpressIFTA.com.
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      Wednesday, October 17, 2012

      Illinois Electronic IFTA Filing is Here!

      All Illinois IFTA taxpayers are now required to apply for their IFTA license and decals and make payments electronically.  This became effective October 1, 2012.  Beginning January 1, 2013, IFTA Quarterly Returns and payments must also be filed electronically.  Paper returns will no longer be mailed out or accepted.

      Taxpayers will set up an online My Tax Illinois account at mytax.illinois.gov.  You can find additional information at tax.illinois.gov.

      ExpressIFTA is an industry leader offering truck tax solutions with the best value and pricing in the trucking industry. 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.  You will have the records you need to file your Quarterly IFTA taxes.

      To find out more about IFTA filing or get started today, contact our friendly US based customer support team in Rock Hill, SC at 704-234-6005 or email us at support@ExpressIFTA.com.
      Read More »

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