How to Fill Out IFTA Quarterly Reports

The International Fuel Tax Agreement (IFTA) simplifies fuel tax reporting for motor carriers operating across multiple jurisdictions. This agreement, encompassing the lower 48 U.S. states and most Canadian provinces, allows carriers to report fuel use to a single base jurisdiction. IFTA ensures that each jurisdiction receives its appropriate share of fuel tax revenue, based on the miles traveled within its borders. Businesses operating qualified motor vehicles that travel interstate are required to comply with IFTA.

Information Gathering for IFTA Reports

Accurate IFTA reporting begins with meticulous record-keeping throughout each quarter. Carriers must track specific data points: total miles traveled in each jurisdiction and total fuel purchased in each jurisdiction.

Electronic Logging Devices (ELDs) and GPS tracking systems offer automated solutions for mileage tracking, providing detailed reports of miles driven in each state or province. These electronic systems can significantly reduce the administrative burden and improve accuracy compared to manual methods.

Manual trip logs remain a viable option for record-keeping, requiring drivers to consistently document dates, routes, and odometer readings at jurisdictional boundaries. Regardless of the method chosen, maintaining detailed fuel receipts is essential. These receipts should clearly show the date, location of purchase, fuel type, number of gallons, and price per gallon.

For bulk fuel storage, detailed records of deliveries, quarterly inventory reconciliations, and withdrawals for each vehicle are also necessary. Diligent record-keeping helps substantiate reported information for potential audits.

Calculating Fuel Tax Liability

Once the raw data is meticulously gathered, the next step involves calculating the net fuel tax liability or refund for each jurisdiction. This process requires consolidating mileage and fuel purchase data for every IFTA jurisdiction in which the vehicle operated during the reporting quarter. Each jurisdiction’s specific fuel tax rates are then applied to these consolidated figures.

Current IFTA fuel tax rates for each jurisdiction are dynamic and can change quarterly. These rates are typically available on the IFTA, Inc. website or through individual state or provincial tax authority websites. Checking these sources for the most up-to-date rates is an important step before performing calculations.

First, determine the total gallons consumed per jurisdiction by dividing the total miles traveled in that jurisdiction by the vehicle’s average miles per gallon for the quarter. The average miles per gallon is calculated by dividing the total miles driven across all jurisdictions by the total gallons purchased during the reporting period. Next, calculate the net taxable gallons for each jurisdiction by subtracting the gallons purchased in that jurisdiction from the gallons consumed in that jurisdiction. Finally, multiply the net taxable gallons by the jurisdiction’s IFTA tax rate to determine the tax or refund for that specific jurisdiction. After performing these calculations for all relevant jurisdictions, sum the individual jurisdiction amounts to arrive at the total amount due or to be refunded for the quarter.

Completing the IFTA Report Form

With all necessary data gathered and calculations completed, the next phase involves accurately transferring these figures onto the official IFTA quarterly report form. These forms are typically accessible from the websites of state or provincial tax authorities, or through resources provided by IFTA Inc. It is important to obtain the correct form for the specific reporting period, as forms and requirements can occasionally be updated.

The initial sections typically request basic administrative details, such as the reporting period and the carrier’s account information. Following this, there are sections dedicated to summarizing total miles and fuel purchased, broken down by each jurisdiction. This is where the consolidated data from the initial information gathering phase is entered.

The form includes a tax calculation worksheet. Here, the previously calculated net gallons, the applicable tax rates for each jurisdiction, and the resulting tax or refund amounts for each jurisdiction are systematically input. The form then provides a summary section where the total tax due or the total refund amount for the entire reporting period is clearly presented. When completing the form, careful attention to detail helps prevent common errors, such as transposing numbers or using incorrect jurisdiction codes, which can lead to delays or penalties.

Submitting the Report and Payment

After the IFTA report form has been thoroughly completed and reviewed, the final steps involve submitting the report and making any corresponding payment. Most jurisdictions offer electronic submission methods, such as online portals provided by state or provincial tax authorities, which often streamline the filing process. Some jurisdictions also allow for physical mailing of paper forms, especially in cases where electronic filing is not feasible or preferred.

Payment procedures vary, but common options include electronic funds transfer (EFT), online payment systems that accept credit cards or electronic checks, or mailing a check. It is important to confirm the accepted payment methods with the base jurisdiction to ensure a smooth transaction. For larger tax amounts, some jurisdictions may mandate electronic payment methods.

IFTA quarterly reports adhere to specific deadlines, which are consistent across all member jurisdictions: April 30 for the first quarter (January-March), July 31 for the second quarter (April-June), October 31 for the third quarter (July-September), and January 31 for the fourth quarter (October-December). If a due date falls on a weekend or legal holiday, the deadline is extended to the next business day. Timely submission is important to avoid penalties, which can include a flat fee of $50 or 10% of the net tax liability, whichever is greater, along with interest on any unpaid tax.

Once the report is submitted and payment is made, retaining copies of the filed report, payment confirmations, and all supporting documentation is important. Records, including mileage logs and fuel receipts, must be kept for a minimum of four years from the due date or filing date, whichever is later, for audit purposes. Maintaining these records ensures compliance during an audit.