As a truck driver, you're familiar with the many responsibilities that come with the job—navigating highways, maintaining your rig, and ensuring timely deliveries. But there’s one more crucial task you can’t forget: IFTA filing. Whether you’re a solo owner-operator or part of a fleet, understanding the International Fuel Tax Agreement (IFTA), and knowing the proper documentation required for filing is essential to staying compliant and avoiding penalties.
In this post, we’ll walk you through the basics of IFTA and give you the lowdown on what documentation you need to file your quarterly reports with ease.
The International Fuel Tax Agreement (IFTA) is an agreement between 48 U.S. states and 10 Canadian provinces that simplifies the way fuel taxes are collected for commercial motor vehicles traveling across state or provincial lines. Instead of filing separate fuel tax reports in every state or province you drive through, IFTA allows you to file one quarterly return with your base jurisdiction (the state where your trucking company is registered).
By filing IFTA, you report the amount of fuel you’ve purchased, the miles you've traveled, and the fuel consumption in each jurisdiction. This ensures that you pay the right amount of fuel tax based on where you’ve driven and fueled up.
IFTA compliance is crucial for several reasons
To file an accurate IFTA return, you need to keep precise records and documentation of your fuel purchases, miles traveled, and the routes you’ve taken. Here's a breakdown of the key documents and records required for filing:
Fuel receipts are your most critical documentation when filing IFTA. For each fuel purchase, you must keep a receipt that includes the following details:
If you’re operating in different regions, make sure to store receipts from every jurisdiction you fuel up in. Electronic receipts are also acceptable as long as they provide the necessary information.
You’ll need to keep a mileage log or trip sheet for each vehicle in your fleet. These logs must detail:
Many truck drivers use electronic logging devices (ELDs) or mobile apps to track miles automatically, but paper logs are also acceptable as long as they are accurate and complete. With Greenlane, you have the ability to record your odometer reading with each fueling.
At the end of each quarter, you’ll need to summarize your mileage and fuel purchases by jurisdiction. This includes:
Most IFTA filing systems (either through your state’s Department of Revenue or an online platform) will require you to break down your totals by jurisdiction to calculate how much fuel tax you owe or are entitled to refund.
With Greenlane, you can download a transaction report for your fuelings by going to “Profile” and scrolling down to “Transaction Report”. You can download by quarter. A spreadsheet report will be emailed to you.
When you’re registered for IFTA, you’ll receive an IFTA license and decals for your truck. Make sure to carry your IFTA license in your vehicle and display the decals on both sides of your truck. These serve as proof of IFTA registration and can be checked by authorities during roadside inspections.
Some vehicles or operations might be exempt from IFTA, such as those with a gross weight of 26,000 pounds or less or vehicles that only operate within a single state or province. If you believe your operation qualifies for an exemption, be sure to keep documentation proving this (e.g., weight slips, operating areas, etc.).
Once you’ve gathered all your documentation, follow these general steps to file your IFTA return:
Ensure you have the following:
Your base jurisdiction is where your IFTA account is registered (typically the state where your business is headquartered). Log into the IFTA filing portal or system for your state/province to start your filing process.
Using the fuel receipts and mileage logs, enter the details into the online IFTA form. This will include:
Before submitting, review the data carefully to ensure everything is accurate. Errors could lead to penalties or audits. Many systems will automatically calculate the taxes owed or refundable based on your entries.
Once everything looks good, submit the form and pay any taxes due. If you’re entitled to a refund, you’ll receive a check or credit from the jurisdiction.
Filing IFTA may seem complicated at first, but once you understand the required documentation and processes, it becomes much more manageable. By staying organized with your fuel receipts, mileage logs, and other required documents, you’ll be able to file your IFTA return accurately and on time.
Remember, the key to smooth IFTA filing is consistency. Track your miles and fuel purchases regularly, and don’t let the paperwork pile up. With the right documentation and a little attention to detail, you can stay compliant and keep your truck rolling down the highway with no worries about IFTA penalties.
Article by Rachel Hagedorn-Sherry, Head of Customer Care @Greenlane.
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