ExpressIFTA Blog

Wednesday, April 24, 2019

Exemptions That Can Save You Big Money When IFTA Filing

We are days away from the 1st quarter reporting due date, April 30. Making sure you file your quarterly IFTA forms correctly can save you from audit and make sure you aren’t paying too much. As part of getting the correct amount back it’s wise to be up to date on non taxable and exempt IFTA miles.

What IFTA Reporting Is For

IFTA Filing
The International Fuel Tax Agreement (IFTA) is a tax collection and sharing agreement between certain jurisdictions that redistribute fuel taxes paid by interstate commercial carries. IFTA requires commercial carriers to pay fuel taxes proportionally, according to the miles traveled to and from each state, and or province. This is put in place to ensure that each IFTA member gets its fair share of revenue to put towards transportation and roads.

Non-IFTA Jurisdictions are where IFTA credentials do not matter.

Non-IFTA Jurisdictions:


Alaska

Hawaii

District of Columbia

Yukon Territory

Northwest Territory

Nunavut

Mexico

Each jurisdiction has its own unique definition of non-taxable mileage or exemptions. Any of the miles that fall under IFTA jurisdictions are considered non-taxable miles. To see what all applies you can visit the IFTA site. There are three kinds of exemptions, vehicle exemptions, fuel exemptions, and distance. They can vary from year to year, so staying up to date will be beneficial.


There are some states that allow exemptions for driving in certain areas, these could be Indian reservations, private roads and land, certain toll roads, etc.

Most turnpikes are taxable and non-exempt. The only two that are not is the Massachusetts Turnpike and the Cobequid Pass Toll Highway. Carriers that claim these as exempt or non-taxable on their IFTA reports are required to keep the receipt as proof.

Who Pays IFTA Tax

  • Anyone who operates a vehicle with 2 axles and a gross weight or registered gross vehicle above 26,0000 pounds.
  • Anyone who operates a vehicle with 3 or more axles (regardless of weight).
  • Anyone who operates a vehicle with a combined weight of 26,000, including cargo. 

*If you DO NOT operate outside of your state IFTA does not apply to you.

It is also important to note that even if the carrier has not conducted any operations or used taxable fuel for a particular period, a report must still be filed.

Quarterly Tax Reporting Period


Due Dates

*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.


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Wednesday, April 10, 2019

Extend Your Tax Day Deadline

Extend Your Tax Day DeadlineThe Application for Automatic Extension of Time to File U.S Individual Income Tax Return, better known as Form 4868, extends the deadline of the income tax return as far as six months. This means you won’t have to submit tax documents until October 15th, 2019.


The deadline to submit a Form 4868 is on Tax Day, April 15.

Form 4868 is for anyone who feels like they can’t meet the deadline. We get it and so does the IRS. Things happen, documents go missing, and time gets away from you.

It is vital to note that Form 4868 only pushes back the filing of your tax documents. It doesn’t give you extra time to pay any taxes that you might owe. If you think you may owe money this year you’ll need to estimate the amount after filing for your extension. 

Three Ways To Get An Extension

1. Pay electronically: When you choose this method you don’t need to file Form 4868. By making a payment the IRS will automatically process an extension of time to file when you pay part or all of your estimated income tax electronically. This can be done online or over the phone.

2. E-File: When you e-file you can do it on your personal computer or through a tax professional. Be sure to have a copy of your previous tax return. This information will be needed for verification. At this time you can choose whether or not to make a payment online, or send it in via postal mail.

3. Paper filing: With paper filing, all you will need to do is fill out a paper Form 4868. You can choose to send it into the IRS in two ways. The first way is through the mail and the other would be through a private delivery service. Be mindful that if you are a fiscal year taxpayer, you must file a paper Form 4868.

If you are unsure on whether you can make the deadline it is important that you file an extension to be on the safe side. Choosing to file late can get pretty costly. The penalty can bee 5% of the unpaid taxes for each month or partial month it is late. If the return is more than 60 days late, the minimum penalty is $135 or 100% of the unpaid tax, whichever value is smaller.



What Filing A Form 4868 Means

Did you know that filing an extension doesn’t put you at higher risk of being audited? Generally, an extension is issued automatically and they won’t hassle you about why you are in need of an extension. So there is no need to pull out the old faithful, “My dog ate my homework” excuse.

Take the time to put in your extension today. We’d rather you be safe than sorry before paying some pretty costly penalties.
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