Knowing about the rules and regulations can help truck drivers make wise decisions and streamline their operations. And one of the most important regulations is the International Fuel Tax Agreement, a cooperative agreement between the states of the US and provinces of Canada. However, Hawaii, Alaska, and the Canadian territories do not take part in it. IFTA mainly aims to establish and maintain the concept of using a single fuel license for interstate carriers and single administering base jurisdiction for each possessor of permit. Qualified motor carriers are required to register and obtain an IFTA License as well as two IFTA Decals. They are also required to file IFTA Fuel Tax Returns in their base state.
Motor carriers must have an established place of business and register in their base jurisdiction to apply for an IFTA License. Trucking companies must keep records of distances traveled by their motor carriers in all member jurisdictions and gallons of fuel purchased there. They must also be operating in more than one IFTA Jurisdiction. After registering for IFTA, motor carriers must file a quarterly tax form to their base jurisdiction even if they did not purchase fuel or operate during that quarter. Motor carriers must renew their IFTA License at the end of every year. IFTA often sends renewal applications automatically for the following years before it expires. Once it is approved, every qualified motor carrier must have a copy of their IFTA License. A two-month grace is also given to motor carriers to renew their license after it expires.
How Global Multi Services Help You To File IFTA Fuel Tax Returns
Commercial motor carriers who own the International Fuel Tax Agreement license file IFTA Quarterly Fuel Tax Return. The process demands accurate and timely reports. It can also be stressful and draining because of the paperwork work involve. Errors and delays can lead to penalties and even downtime. So how can you ensure your reports are accurate? Global Multi Services software system will make your fuel tax reporting a simple process, and all the audits will be perfect. We will help you calculate your mileage in each jurisdiction, and your IFTA report is compiled and totaled automatically. These save time and make your report accurate, avoiding penalties. Contact us today. We are delighted to work with you and show you how to help your business run smoothly.
IFTA PERMIT AND IFTA DECAL
Getting into an IFTA Program and having an IFTA Permit are two different things. Anyone can get into an IFTA Program, but to get an IFTA Permit you have to apply officially with the required IFTA documents, plus your motor carrier should also fulfill IFTA requirements.
To get the IFTA Permit, you have to apply in your base jurisdiction, and if your state does not take part in IFTA you could apply in the neighboring state. The following list of documents are required to get into IFTA:
- USDOT Number
- Registered Business Name
- Mailing Address
- Federal Business Number
Once you get the IFTA Permit, you will be given a pair of IFTA Decals for each of your vehicles. And you could also apply for more than one pair of IFTA Decals, which will cost you some $25 for each pair.
IFTA QUARTERLY FUEL TAX REPORT
A Quarterly IFTA Fuel Tax Report is filed by the motor carrier with an IFTA account. You have to report quarterly driven miles of every motor carrier to enable a bill of exchange and charge your tax accordingly. Besides, it also ensures the accuracy of your filed tax.
IFTA Quarterly Fuel Tax Report is collected by your base jurisdiction, processed, and redistributes the collected taxes to member states that are due. Our experts at Global Multi Services are adept at processing IFTA permits, filing IFTA Fuel Tax Returns, and helping businesses get trucking permits post-haste.
Penalty for IFTA Non-compliance
Failure to file an IFTA Fuel Tax Return after two months of the due date will result in the suspension of your IFTA License and the Internal Revenue Service penalty. Motor carriers that file their tax return but fail to pay for late fees, tax obligations after three months of the due date will be given a jeopardy assessment. Their IFTA License will also be revoked. Motor carriers in this category have two months to file and pay the late return.
WHO IS ELIGIBLE FOR IFTA
IFTA is required for vehicles:-
- Having two axles and a gross vehicle weight (GVW) rating or registered GVW weight over 26,000 lbs or
- Having three or more axles regardless of their weight, or
- Weighing over 26,000 lbs when combined with GVW