When trucking and transportation companies have to haul and do business in multiple states and in Canada, calculating fuel taxes and obtaining permits for each one paralyzes business. The International Fuel Tax Agreement allows truck drivers to operate under one license and file one report covering 48 U.S. states and all Canadian provinces (the territories are not members of the agreement).
This greatly increases the options for drivers in the field. Now, instead of lengthy and inefficient application processes in each state and province, drivers have streamlined access to the entire continental U.S. and most of Canada, thanks to the IFTA tax report. While much more convenient than the old process, it still includes important reporting requirements that trucking companies should not overlook.
How the simplified process works
IFTA-licensed companies still purchase fuel as usual, but they are “charged” any fuel taxes they have paid. For each fiscal quarter (by the end of April, July, October and January of each year), they submit an IFTA fuel tax report that shows the kilometers and volume of fuel purchased in each IFTA jurisdiction. The amount of the tax payment in each jurisdiction is determined by a formula that takes into account average fuel consumption. You end up with a list of what was paid in each participating state/province and whether you owe or overpaid. Your primary jurisdiction (i.e., the one where you were licensed as a carrier) reimburses you for the overpayment and receives all amounts owed, and then transfers the funds to the other participants. As you can see, the scheme relies heavily on the quarterly report that the carrier must file.
Who needs/receives an IFTA license?
Is it necessary to file an IFTA fuel tax report and apply for an IFTA license?
This requirement does not apply to all vehicles, and most drivers can safely travel between states and provinces without the need for additional licensing and reporting. IFTA applies to commercial vehicles of certain classes or vehicles designed for specific purposes.
If your vehicle:
- is designed to transport people or property
- has three or two axles, and an actual or registered gross vehicle weight exceeding 26,000 pounds (11,797 kg) – or if the combined actual or registered gross vehicle weight is more than 26,000 pounds (11,797 kg)
Then it meets the requirements of the Act and you must submit an IFTA quarterly fuel report.
Failure to file a trip report, late filing and underpayment can result in a fine of 10% of the amount owed or $50. Keep in mind that interest will be assessed on the amount owed by each participating jurisdiction.
Truck Dispatcher Service’s IFTA Reporting Service
Because jurisdictions set their own rates, the whole system revolves around properly completed IFTA reports. Not only can violating the requirements result in significant costs if you owe fuel taxes in any participating jurisdiction, but it can also negatively impact the reputation of your business. For many trucking companies, even if you can fill out and file many of the required documents and reports online, all that tedious administrative work takes up valuable time that a business would rather spend driving and making money. That’s why Truck Dispatcher Service is happy to take on the responsibility of completing IFTA reports.
That’s what the IFTA Fuel Tax Reporting Service from Truck Dispatcher Service is all about. We try to make our customers’ lives easier and save them from the many obstacles they may encounter when they hit the road. We know you love to drive and provide great results for your customers – that’s how you make a living. You didn’t start working as a truck driver because you enjoy filing paperwork and filing fuel tax reports.
That’s what you can count on when you use our services.
A way to save money for your business and protect your bottom line
With proper IFTA fuel reporting, you and your business will save money on fuel tax and save time and nerves. With Truck Dispatcher Service, you don’t have to worry about overpaying fuel tax because we’ll make sure everything is done accurately and correctly. Running your business will be much easier, and you’ll be able to protect your profits.
Full transparency for you and your customers
The foundation of your business is a good relationship with your customers. They want to know exactly what’s going on right now, and they don’t want any delays or obstacles. Permits and tax filings can make this difficult, which is why truck drivers appreciate our services so much. You’ll love the transparency and understanding, too.
Hands-free service from your perspective
As mentioned above, the IFTA rules are a much clearer system compared to the old way of doing things. However, there are still nuances and issues that need to be taken into account. Let us handle these issues for you, giving you a completely “hands off” approach that will allow you to focus on other aspects of running your business.
The Straight Path to IFTA Fuel Report Compliance
Regulatory compliance is always a concern for drivers. After all, you don’t want rule violations to hurt your business and your sources of funds, and you don’t want to be constantly stressed out, questioning whether you’re acting within the rules and regulations. With Truck Dispatcher Service, you can always be sure that you are fully compliant. So all you have to worry about is driving.
A knowledgeable team is ready to help you with your quarterly IFTA fuel tax report
You should rest assured that you can count on an experienced and knowledgeable team to give you the support you need on the road. If you have any questions or requests regarding the IFTA Quarterly Report, we are always available to answer them.
These are just a few of the factors that make our IFTA fuel tax reporting services so valuable to truck drivers across the United States and beyond. We make sure that IFTA requirements provide the benefits and benefits they are designed to provide, rather than further inconvenience to you and your business.
Support for truckers and trucking companies
Truck Dispatcher Service was founded with one mission: to help truckers make more money. We help increase our customers’ profits by:
- Finding the best loads and rates across multiple databases
- Negotiating the best rates for freight
- Freeing up valuable customer time for work that makes them money
- Providing a profitable alternative to in-house dispatch and administrative services.
Many clients love our comprehensive services – dispatch, paperwork and compliance, among other things – knowing that our extensive industry experience will support them. Other clients prefer more specific services. We believe you know your business better than anyone, so whether you want a suite of Truck Dispatcher Service services or simply invite us in for IFTA compliance, we’re happy to help. Contact us to learn more.