ExpressIFTA Blog

Friday, January 18, 2013

How To Avoid Paying Quarterly IFTA Taxes

We receive many calls about how carriers can avoid paying Quarterly IFTA taxes at the end of the quarter.  While we hear many ideas and suggestions, the simple answer is to purchase your fuel where you run your miles.

The way IFTA works is as a "pay now or pay later" system. At the end of the quarter, the licensee completes their fuel tax report, listing all miles traveled in all participating jurisdictions and lists all gallons purchased, then the average fuel mileage is applied to the miles traveled to determine the tax liability to each jurisdiction.  When the majority of the fuel is purchased in states where the fuel tax rates are lower, it will cause the tax due at the end of the quarter will be higher. When you purchase the fuel in the states where you run the miles your tax due at the end of the quarter will be lower; hence the pay now or pay later system.

ExpressIFTA can answer th
is question and many more. To find out more about IFTA filing, contact our friendly Express Tax Support Center in Rock Hill, SC  at 704.234.6005 between the hours of 8am – 6pm EST, Monday through Friday or email us at support@expressIFTA.com.

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