What is the International Fuel Tax Agreement (IFTA)?

IFTA (short for the International Fuel Tax Agreement) is an agreement between the states of  US and the provinces of Canada to make it easier for Interstate carriers reporting and paying taxes on the motor fuels they use. IFTA makes it easy for owners/operators to file taxes via multiple states. If you operate in at least two or more member states or provinces, you can register and take advantage of everything this agreement has to offer. Your base jurisdiction will be able to issue one license in order to report and pay motor fuel taxes for one jurisdiction. The license allows you to operate between all IFTA jurisdictions. The IFTA allows you to file for tax return in your jurisdiction that will check your fuel tax records. By IFTA standards, you can operate in 48 states and 10 Canadian provinces. Hawaii, Alaska, and the District of Columbia are not recognized by the IFTA. In addition, Nunavut, Northwest Territories and Yukon Territory in Canada are not recognized by the IFTA.  Likewise, 4 states in the United States still require you to register their permits regardless of the IFTA license. These states are New York, Kentucky, New Mexico, Oregon.

After getting your IFTA license, a calendar with the required monthly decals will be provided. These will go on every vehicle registered in your fleet. One sticker should be attached to each side of the rear of the vehicle, in the lower corner. The buses should have stickers on each side of the bus, but no further than behind the driver's seat at eye level from the ground. If you do not place these stickers on compulsory placement sites, serious fines may be added. Such violations can lead to the arrest and sale of your vehicle. Most stickers are identical for the same year. Thus, any set of stickers can be placed on any suitable vehicle in your fleet.

Do I need to register?

It is not mandatory to register for IFTA. It is highly recommended that you register if you qualify. The process allows you to apply for single fuel permit instead of requesting each permit in each state that you have operated in.

To qualify, your must have the following:

– has two axles and a registered gross vehicle weight of 26,000 pounds or more

– used in a combination that has a registered gross vehicle weight of 26,000 pounds or more.

– has three or more axles

Motor vehicles operated only for personal use are not qualified for IFTA registration.

Expiration Date and Renewal Period for IFTA

The expiration date for IFTA stickers is December 31st of each year. You must have a valid IFTA license before March 1st of each year. The sticker of the current year must be displayed on each of your vehicles. These requirements should be met if you submitted your IFTA license renewal request on time and your account is in good standing. A valid IFTA license and decals for the previous year will be accepted by the member jurisdiction through January/February of each year. This is instead of valid, current-year IFTA credentials.

When Do I File for My IFTA Quarterly Tax Return? 

You must have a postmark before or on time when submitting IFTA tax returns. Saturday, Sunday or holidays are not considered applicable days. Thus, the next business day is the final filing date. For late submission of documents on time, a fine and interest may be imposed. If you do not receive your quarterly tax return by mail, you must still file on time. If your tax has not been sent at least 14 days before the due date, you must call for a replacement.

If you do not meet the requirements for filing, such as: not submitting a quarterly return, filing an application before the due date of payment, or paying the tax due, then you may be subject to fines and penalties. The fine is $ 50, or ten percent of the total net tax payable on your return, whichever is greater.

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Important Note: Be sure to file an IFTA tax return even if you are not operating during the quarter.

Call DOT Filing experts at 818-568-0644 and seek help registering for IFTA. We are doing it every day and know all the ways of saving you time and money.