International Fuel Tax Agreement
When do I need an International Fuel Tax license and decal (IFTA)?
You are required to have an IFTA license if you operate in two or more jurisdictions and the power unit:
- Has two axles and a gross vehicle weight or registered gross vehicle weight of 26,001 lbs. or higher;
- Has three or more axles regardless of weight; or
- Is used in combination and the said combination is 26,001 lbs. or higher.
How long is an IFTA license and decals good for?
IFTA license and decals are valid for a calendar year from January 1 through December 31.
How often do I file my fuel tax returns?
Carriers licensed under IFTA are required to file quarterly ( four times per year) fuel tax returns, with their base jurisdiction, showing all miles traveled, all fuel consumed, and gallons of fuel purchased tax paid in each IFTA jurisdiction operated during the quarter.
How and when do I receive my quarterly fuel tax returns?
You will receive a quarterly tax return, by U.S. Postal Service, during the last week of the current quarter. You will be required to complete and mail the return by the reporting quarter due date in order to avoid a penalty of $50.00 or 10% of the net tax liability, whichever is greater.
Do I file a quarterly fuel tax return if I didn’t run during the quarter?
Yes, you must submit a zero return even if “no” taxable fuel was used.
What are the reporting quarters and due dates?
|
Reporting Period
|
Due Date
|
|
January - March
|
April 30
|
|
April - June
|
July 31
|
|
July - September
|
October 31
|
|
October - December
|
January 31
|
What is a tax paid purchase?
Any gallon of fuel purchased that tax was paid on at the time of purchase.
What miles are non-taxable miles?
Fuel trip permit miles are not taxable miles in any jurisdiction. Toll miles and off-highway miles are not taxable miles in some jurisdictions. Contact each jurisdiction for information on these exceptions.
How long do I need to retain my IFTA records?
Every licensee must maintain records to support information reported on the quarterly tax return for a period of four years (recommend 8 years due to IRS laws) from the due date of the return or the date filed, whichever is later.
Refunds
The licensee shall receive, on request, a cash refund of any accumulated credits. Refunds to a licensee will be made only when all tax liabilities, including audit assessments, have been satisfied to all member jurisdictions. Refunds determined to be properly due shall be paid within ninety days (90) after receipt of a request for payment from a licensee.
How and when do I renew my IFTA license and decals?
In late August of each year, you will receive a notice to renew your license and order necessary decals for the coming year.
