As a trucker, you know that filing your International Fuel Tax Agreement (IFTA) taxes is one of the most tedious parts of running your business. After all, it involves tracking your miles and fuel purchases across multiple states and provinces over the course of a quarter—not to mention keeping all those records on file for four years. This whole process can be incredibly time-consuming, but it doesn’t have to be! Read on to learn how truckers can streamline their IFTA fuel tax filing.
What Is IFTA?
Any trucking company that hauls freight across state lines must comply with the International Fuel Tax Agreement or IFTA. The agreement lets states and Canadian provinces collect their share of fuel taxes based on the miles you drove in that territory. That means drivers need to keep trip info that records the miles they drove in each state or province, as well as a record of how much fuel was purchased. IFTA fuel taxes are filed four times a year, and you must keep this record on file for four years. That includes those trip sheets and fuel receipts or tickets.
Truckers are required to file an IFTA fuel tax return four times a year (Q1 Jan-Mar, Q2 Apr-Jun, Q3 Jul-Sept, Q4 Oct-Dec). The return must include details such as trip sheets recording the number of miles driven in each state or province, as well as a record of any fuel purchased during those trips. Without accurate records like these, it can become difficult for a driver to prove compliance with the terms of this agreement.
Outsource Your IFTA Filing
In order to save time and energy when it comes to filing your IFTA fuel taxes, consider outsourcing it. There are several fleet service companies that provide this service for truckers just like yourself who don’t have the time or resources to tackle tax filing on their own. By letting one of these companies handle this tedious task for you, you get back the weekend every quarter that would otherwise be spent working on your paperwork!