Solutions

IFTA Reporting

Easy to use, automated IFTA mileage tracking and reports to make filing and compliance hassle-free

IFTA stands for International Fuel Tax Agreement. Member jurisdictions act in conjunction to administer and collect motor fuel use taxes.

IFTA fuel tax report

StreetEagle's Fuel Tax Report displays total mileage driven, gallons purchased, and fuel costs within each state.

If your organization operates vehicles that travel in two or more member jurisdictions, and if these vehicles weigh more than 26,000 pounds, OR have three or more axles (regardless of weight), the IFTA reporting mandate applies to you. “Member jurisdictions” mean all of the lower 48 states in the U.S., and all 10 of the Canadian provinces as well.

IFTA reporting is a critical part of fleet compliance, along with adherence to the ELD mandate and managing Hours of Service (HoS). An IFTA sticker (decal) is required to be displayed on all vehicles that are affected by the International Fuel Tax Agreement as well.

Fortunately, StreetEagle includes tools that make it very easy to record and report on mileage traveled across states, and we’ll even integrate filing with our compliance partner NECS (“America’s Expert in Fuel Taxes”) to make the entire process seamless.

IFTA stands for International Fuel Tax Agreement. Member jurisdictions act in conjunction to administer and collect motor fuel use taxes.

If your organization operates vehicles that travel in two or more member jurisdictions, and if these vehicles weigh more than 26,000 pounds, OR have three or more axles (regardless of weight), the IFTA reporting mandate applies to you. “Member jurisdictions” mean all of the lower 48 states in the U.S., and all 10 of the Canadian provinces as well.

IFTA reporting is a critical part of fleet compliance, along with adherence to the ELD mandate and managing Hours of Service (HoS). An IFTA sticker (decal) is required to be displayed on all vehicles that are affected by the International Fuel Tax Agreement as well.

Fortunately, StreetEagle includes tools that make it very easy to record and report on mileage traveled across states, and we’ll even integrate filing with our compliance partner NECS (“America’s Expert in Fuel Taxes”) to make the entire process seamless.

IFTA fuel tax report

StreetEagle's Fuel Tax Report displays total mileage driven, gallons purchased, and fuel costs within each state.

IFTA fuel tax data summary

StreetEagle's Fuel Tax data summary makes it easy to insure fleet compliance by reporting mileage and fuel use across each state.

Automated IFTA mileage tracking via StreetEagle

As a part of the report set within StreetEagle, there are Fuel Tax Reports that keep tracking of mileage by state. These reports display fuel usage information broken out in two different ways:

  • Gallons used by state
  • Total costs by state

Benefits of managing IFTA fuel tax reporting via StreetEagle:

  • Virtually eliminates interstate fuel tax paperwork
  • Reduces administration time and costs
  • Minimizes the risk of IFTA compliance penalties and violations
  • Improves driver efficiency and reduces downtime

Automated IFTA mileage tracking via StreetEagle

As a part of the report set within StreetEagle, there are Fuel Tax Reports that keep tracking of mileage by state. These reports display fuel usage information broken out in two different ways:

  • Gallons used by state
  • Total costs by state

Benefits of managing IFTA fuel tax reporting via StreetEagle:

  • Virtually eliminates interstate fuel tax paperwork
  • Reduces administration time and costs
  • Minimizes the risk of IFTA compliance penalties and violations
  • Improves driver efficiency and reduces downtime
IFTA fuel tax data summary

StreetEagle's Fuel Tax data summary makes it easy to insure fleet compliance by reporting mileage and fuel use across each state.

 

Frequently Asked Questions about IFTA Mileage Tracking

What is the IFTA Reporting Process?

Under IFTA, commercial carriers must keep detailed records on miles driven, fuel purchased, and fuel tax paid in each state or province that their vehicles travel in. Carriers submit these records to their base jurisdiction on a quarterly basis for review. The base jurisdiction determines whether they owe taxes or will receive a credit. Since the allocation of taxes is such a huge and complex undertaking, IFTA, along with the International Registration Plan (IRP), oversees the process and provide assistance and guidance to states and provinces on running their individual programs.

Overview of the IFTA Process:

  • Carrier submits an IFTA license application in the base jurisdiction.
  • Base jurisdiction reviews and processes the license application.
  • Carrier receives IFTA license and two decals for each qualified vehicle. A copy of the license must be placed in the vehicle during operation.
  • At the end of each quarter, the licensed carrier files a quarterly IFTA tax return to the base jurisdiction for fuel used and remit any amounts due.
  • Review and processing of the IFTA tax return by the base jurisdiction.
  • A transmittal report is sent by the base jurisdiction to the other jurisdictions in which the vehicle operated in.
  • Base jurisdiction processes all transmittal reports and payments from other states
  • Business pays base jurisdiction what is owed, base jurisdiction pays other jurisdictions what they owe and collects from other jurisdictions what is owed to them.

Do I Need an IFTA License?

Carriers must obtain an IFTA license for qualified motor vehicles that travel in more than one IFTA member jurisdiction. The IFTA Articles of Agreement defines a Qualified Motor Vehicle as a motor vehicle used, designed, or maintained for the transportation of persons or property, that also has the following:

  • Two axles and a gross vehicle weight (GVW) or registered GVW of more than 26,000 pounds or 11,797 kilograms; or
  • Three or more axles regardless of weight; or
  • Is used in a combination, and the combination has a GVW or registered GVW of more than 26,000 pounds or 11,797 kilograms.

Carriers can apply for an IFTA license in their base jurisdiction. They will receive a license and two decals for each vehicle, which must be renewed annually.

Are vehicles under the IFTA mandate required to display an IFTA sticker/decal?

Trucks that travel between states must be driven with a valid driver’s license for the driver, as well as with an IFTA sticker clearly displayed on the vehicle.

Are there exemptions to IFTA?

There are a number of vehicle, fuel, and distance exemptions allowed for IFTA, but they vary by jurisdiction. For example, recreational vehicles, farm plated vehicles, school buses, tow trucks, and government-owned vehicles are exempt in some states and provinces but not all. Biodiesel is also exempt from IFTA according to the 2017 list. The full list of IFTA exemptions is posted on the International Fuel Tax Association website.

What are the IFTA Fuel Tax Reporting Due Dates?

Carriers submit a quarterly tax return to their base jurisdiction that covers motor fuel usage and the distance traveled in IFTA member jurisdictions for all their qualified vehicles. Even if the carrier has not conducted any operations or used taxable fuel for a particular period, a report must be filed.

The due dates for filing a tax return and submitting payment are the last day of April, July, October, and January (or if that day falls on a weekend or holiday, the next business day).

In addition to submitting tax returns, license holders must also keep detailed records of distance traveled, motor fuel purchased and used, any trip permits, monthly/quarterly summaries, and Individual Vehicle Distance Records (IVDRs).

What Are the Penalties for Failing to Comply with IFTA?

Penalties apply for failing to comply or filing late. Each IFTA jurisdiction has their own specific rules, but most follow a framework. For example, both California and New York assess a $50.00 or 10% penalty if you fail to file your return, file after the due date, or fail to be the amount due. However, Texas expands the rule to say, “If your failure to pay the taxes is due to fraud, you will be subject to a penalty of two times the amount of tax due.”

If you travel to an IFTA jurisdiction without a permit, you may be assessed a penalty, fine, or citation — depending on the jurisdiction’s laws. In California, you could be given a $100 to $500 penalty.

What is the process for IFTA Auditing?

Each member jurisdiction in IFTA is required to audit 3% of its licensed base annually to verify compliance and ensure the correct tax is being paid. While the prospect of an IFTA audit may cause distress among some, they serve an important purpose.

One way to make IFTA compliance easier is to keep accurate records. Good record keeping is very important when preparing your IFTA and Mile Tax returns. In the event of an audit, poor or sloppy records can cost a carrier large sums of money in penalties and interest, disallowed fuel, additional miles or an MPG reduction. If a carrier has good records, the audit becomes more of a process validation than a records audit. If complete supporting information is provided to an auditor, be it manual records or GPS data, the audit tends to go much smoother.

More Helpful Resources about IFTA/IFTA Reporting