7J= TruckingOffice Trucking Management Software

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1 7J= TruckingOffice Trucking Management Sftware '

2 Cntents What is IFTA?... 2 Why D We Need IFTA? I Already Pay Taxes... 4 Des IFTA Apply t Me?... 5 Hw t Register fr IFTA... 6 What s Next?... 7 Expiratin... 7 Penalties... 8 Additinal Requirements/Inf... 8 IFTA Reprting Perids... 9 What Yu Need t Fill Out Yur IFTA Reprts Cmmn IFTA Reprting Mistakes and Hw t Avid Them

3 What is IFTA? The Internatinal Fuel Tax Agreement (IFTA) was frmulated t simplify the payment f fuel taxes acrss state and natinal brders. Its gal is t ensure that each entity receives its prper share f tax revenue, as well as t simplify the prcess fr mtr carriers. This agreement spans the lwer 48 US states and Canadian prvinces, making it simpler t track carriers that perate in mre than ne jurisdictin. Alaska, Hawaii, and the Canadian territries are nt included in IFTA. Under IFTA, cmpanies are issued ne IFTA license and tw state decals fr each truck, allwing them t perate in ther jurisdictins withut having t buy additinal decals. Prir t this agreement, each state had their wn taxing system, and peratrs had t btain individual permits fr every state in which they perated. Sme states retain additinal requirements fr fuel tax reprting, but the prcess has been streamlined by the adptin f this mre universal standard. 3

4 Why D We Need IFTA? I Already Pay Taxes When yu buy fuel, yu pay a fuel tax at the pump. This tax mney is used t keep up the rads and highways. The prblem cmes in when yu buy fuel in ne jurisdictin, then drive int anther jurisdictin. S if yur truck travels thrugh a jurisdictin and yu dn t buy any fuel there, then they dn t get any tax revenue. IFTA takes the ttal miles driven in each jurisdictin and applies the apprpriate tax rate fr that jurisdictin t thse miles. Then it takes the fuel gallns purchased in each jurisdictin and gives back a credit in sme jurisdictins and gives yu a balance due in thers. IFTA is designed t make sure that each jurisdictin that yu perate yur cmmercial vehicle in gets their share f the fuel taxes, and can cntinue t maintain their rad systems. 4

5 Des IFTA Apply t Me? IFTA applies t yu if yu meet the fllwing criteria: 1. Yur truck has a grss vehicle weight (GVW) f 26,000 punds r has three r mre axles r bth. Fr example, if yur truck has a GVW f 25,000 punds but has three axles, then yu fall within IFTA jurisdictin. If yur truck has nly tw axles but has a GVW f 27,000 punds, yu are als under IFTA. This includes piggyback cmbs that have a GVW f at least 26,000 punds. 2. Yu perate acrss state lines (in at least tw IFTA jurisdictins) fr cmmercial purpses; i.e. transprting gds. All cmmercial trucking cmpanies are required t btain an Internatinal Fuel Tax Agreement license, althugh exceptins can be made fr gvernment vehicles and farm vehicles. 5

6 Hw t Register fr IFTA 1. Register in yur base state. The IFTA website lists cntact infrmatin fr each base jurisdictin. a. Yu must accrue mileage in that base state. b. Yu must als perate cmmercially in at least tw IFTA jurisdictins. 2. Yu can cmplete the IFTA applicatin package yurself, r yu can cntact the Truckers Accunting and Permitting Service t apply n yur behalf. 3. Yu need t btain an annual license fr each vehicle in yur fleet. The cst fr this will vary; sme states charge a fee fr applicatin prcessing r fr the decals, and thers have n fees. 6

7 What s Next? 1. Once registered, yu will receive an IFTA license and tw decals fr each truck yu register. The decals shuld be placed n either dr. While yu re waiting t receive yur IFTA stickers, yu can get a temprary IFTA license faxed t yu t carry in yur truck until the decals arrive. Once apprved, each truck must carry a cpy f the distributed licenses. 2. Yu will need t file a tax reprt each quarter, even if yu d nt purchase fuel r perate during the quarter. The IFTA tax return is mailed n a quarterly basis t all licensed carriers. Tax rates can be viewed, dwnladed, and printed at As yu cmpile yur IFTA tax reprt, yu ll see whether yu we mney r will receive a refund r credit. Expiratin After yur initial registratin, IFTA will send renewal applicatins autmatically fr the fllwing years. Regardless f where r when an IFTA license is btained, all decals will expire n December 31 st every year. Althugh licensees are recmmended t renew the decals immediately after expiratin, it is nt required. There is a 2-mnth grace perid frm December 31 thrugh February 28 t renew yur license. 7

8 Penalties Late filers are subject t a penalty f either $50 r 10% f their ttal tax bill, whichever is greater. The $50 charge applies even if yu we n taxes. Interest n late IFTA reprts begins accumulating the day after they re due. These penalties are calculated bth by the mnth and by fractins f a mnth. The state can disallw credit fr taxes paid in ther states if valid fuel receipts are nt prvided, and may even suspend r revke IFTA privileges. Additinal Requirements/Inf Keep returns fr at least fur years after their due date. All retail fuel purchase receipts must include: Date f purchase Name and address f the merchant Number f gallns purchased Type f fuel purchased Buyer s name Unit number Keep all trip recrds and reprts that g alng with returns. Mst states require, r at least greatly prefer, nline filing. Thse wh mail their IFTA reprt must take a chance n slw delivery times and ther risks that can hit them in the pcket, big-time. 8

9 IFTA Reprting Perids 1. January 1 March 31, reprt due April 30 th 2. April 1 June 30, reprt due July 31 st 3. July 1 September 30, reprt due Octber 31 st 4. Octber 1 December 31, reprt due January 31 st What Yu Need t Fill Out Yur IFTA Reprts Mileage recrds fr all f yur cmmercial vehicles, including ttal miles traveled and the number f miles driven in each jurisdictin. Receipts fr all retail fuel purchases fr each vehicle. The IFTA quarterly fuel tax schedule (IFTA-101). The current IFTA final use tax rate and table fr the rate cde (IFTA-105). A cver sheet, als knwn as the IFTA quarterly fuel tax return sheet (IFTA-100). Instructins fr filling ut frm IFTA-101 (IFTA-101-I). 9

10 6 Cmmn IFTA Reprting Mistakes and Hw t Avid Them Filling ut yur IFTA reprting frms is a big part f being an wner peratr. Unfrtunately, all it takes is a basic mistake t land yu in deep truble with this essential aspect f perating yur business. Here are six f the mst cmmn errrs we see: 1. Using lgbks instead f daily trip reprts. Yur lgs by themselves rarely have all the infrmatin yu need t fill ut yur IFTA frms accurately. 2. Frgetting abut unladed, bbtail, r persnal miles, all f which must g int the recrds. 3. Waiting till the last minute. Nthing messes up IFTA reprting frms faster than filling them ut hastily. Unfrtunately, many drivers view this task as an afterthught. The truble is, the revenue service has a different perspective. S make it a pririty t cmplete yur tax recrds in a timely fashin. That ll help yu make sure yu have time t d them crrectly and t crrect any needed errrs befre filing. 4. Using a GPS device that's nt IFTA-cmpliant. This can be tricky, because many devices claim t be cmpliant when they're nt. S check reviews and chse ne that will meet yur needs. 10

11 5. Using hand-written ntes as a basis fr yur IFTA reprting frms. Relying n cffee-stained messages scrawled in bad light with a pen that's running dry is asking fr prblems. The best slutin is a cmputer-based apprach. 6. Nt taking advantage f the pwerful slutins mdern technlgy prvides. If yu're still taking care f paperwrk the ld-schl way, yu dn't knw what yu're missing. TruckingOffice, the ultimate trucker's assistant, can streamline tasks that used t take yu hurs. Besides streamlining yur IFTA reprting frms, it can als help yu t keep track f lads, recrd miles with uncanny accuracy, dispatch invices in a timely fashin, and maintain yur fleet in tip-tp cnditin. TruckingOffice takes the headaches ut f IFTA filing; CHECK OUT ALL THE FEATURES HERE. 11