| Audience | Fleet Admins, Fleet Managers |
| Applies To | IFTA |
Answer:
IFTA is the cooperative agreement between 48 states in the U.S. and 10 provinces in Canada. It allows inter-jurisdictional carriers to report and pay taxes for the fuel their vehicles consume across states using a single fuel tax license.
Some points to remember for IFTA include:
- Constant GPS no-fix data normally can’t be retrieved for insufficient GPS information coming through intermittent GPS.
- Bad or inaccurate GPS data can result in missing jurisdictions.
- Wrong Fuel Purchase entries can be a result of abnormal fuel values.
|
Note: For GPS connectivity issues, please visit GPS Troubleshooting, and for Fuel Corrections, Fuel Receipts |
4. Before submitting your quarterly report, check your mileage to ensure no data entry errors or inaccurate trip records.
5. When auditors process fuel taxes, they often come across these issues:
- Filing the IFTA report late or forgetting to report will lead to a penalty of $50.00 or ten percent of the net tax liability, whichever is greater, which will be assessed on late-filed returns and potentially result in an audit.
- Estimating fuel calculations
- Not reporting every mile, including personal or unloading miles
- Inaccurate miles per gallon (MPG), which is expected to fall between 5 to 10 MPG for trucks and remain relatively the same each reporting period
- If you can resolve these common fuel tax issues, you will be well-prepared for an IFTA audit.
Related Content
Was this article helpful?
9 out of 11 found this helpful