International Fuel Tax (IFTA) Filing Service Consultants
Does your trucking company travel across state lines? If so, you need to ensure that you remain compliant with the International Fuel Tax Agreement (IFTA). Knowing how IFTA works, recognizing common pitfalls, and staying on top of requirements is essential when it comes to compliance.
What is IFTA?
IFTA is a multi-jurisdictional arrangement that governs the collection and use of fuel taxes, ensuring that the 48 contiguous U.S. states and Canadian provinces receive their fair share of tax revenue.
The program distributes tax revenue to the states and provinces based on where the fuel is used, easing the reporting requirements for carriers.
Here’s how it works.
Carriers register any qualified motor vehicles that are subject to IFTA in their home state. The single filing is then allocated based on where those vehicles travel.
To remain compliant, carriers must file a quarterly fuel tax return with a payment and keep meticulous records about mileage and destinations.
how IFTA Tax Services Can Save Your Business Money
Transportation Tax Consulting ensures compliance, streamlines reporting, and optimizes tax planning for international fuel tax, minimizing costs.
Expert Compliance Guidance
Transportation Tax Consulting provides comprehensive guidance on international fuel tax regulations, ensuring that your business complies with varying tax laws across different countries. Our specialists help you navigate complex requirements, avoiding costly penalties and legal issues.
Efficient IFTA Tax Reporting and Filing
Our team streamlines the process of filing and reporting international fuel taxes, reducing administrative burdens. By accurately preparing and submitting necessary documentation, Transportation Tax Consulting ensures timely compliance and minimizes the risk of errors or omissions.
Strategic Tax Planning
Transportation Tax Consulting offers strategic tax planning services tailored to your international operations. We identify opportunities for tax savings and optimize your fuel tax strategy, helping you manage costs effectively and enhance your global competitiveness.
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Transportation Tax Consulting's signature method combines deep industry expertise with strategic planning and meticulous execution. We conduct thorough analyses of tax regulations, develop customized solutions, and implement proactive compliance strategies tailored to each client's unique needs. This method ensures accurate reporting, optimal tax efficiencies, and effective resolution of tax challenges, delivering reliable outcomes and long-term financial benefits.
The Challenges of IFTA Compliance
While IFTA eases some of the burden and saves time over filing in each jurisdiction, the regulations can still trip up truck companies. For example, carriers must track and submit distance and fuel records, trip permits, and monthly and quarterly summaries.

Mileage must be tracked by state, unit, and date, and include odometer readings. Fuel receipts must include where the fuel was purchased, vendor name and address, type of fuel used, date, and gallons purchased.
Tracking Mileage and Fuel Purchases Across Jurisdictions
There are multiple ways to track mileage and fuel. Today, many carriers use software designed to manage a trucking fleet, including programs to track fleet locations and routes, miles in each state or province, and automate electronic logging.
GPS tools are another option that can track state-by-state miles driven.
Manual calculations and notebooks used to be the common way to track activity, but those methods are cumbersome, prone to errors, and require truck drivers to manually record information.
Common Errors That Lead to Penalties
A failure to comply with IFTA requirements and sloppy recordkeeping can trigger unpleasant and costly audits. Among the most common errors that can lead to penalties are:
- Filing returns that are late or incomplete
- Not fixing odometer issues
- Not recording personal miles along with professional travel
- Estimating mileage
- Using software that is not compliant
- Erroneous miles per gallon entries
- Failing to record every mile
Staying Up-to-Date with Changing Regulations
IFTA regulations and procedures can change regularly. Be sure to check with your state regulatory or tax agency to ensure you are up to date with any recent changes.
Using software can also simplify these reporting changes as software programs are regularly updated to reflect changes.
Tips for Streamlining IFTA Compliance
Want to streamline your IFTA compliance procedures? Consider the following:
New Paragraph
- Use a compliant software solution
- Reduce or eliminate manual calculations
- Maintain detailed records
- Focus on staff training
- Use compliant IFTA software
- Hire an IFTA filing service consultant
- Use fuel cards that track expenses
- Use automated reporting
Using Technology to Track Mileage and Fuel Purchases
There are many different tools to use for your fuel purchases and mileage tracking. These tools allow you to remain compliant, automate reporting, and take the guesswork out of your IFTA management.
Technology also accelerates your compliance, making it easier to report and stay on the right side of the regulations.
Organizing and Storing Receipts for Accurate Reporting
The best way to avoid an IFTA audit is to ensure that your records are organized, preferably by state or province, and complete. Receipts that are illegible or faded may result in an audit.
While some companies still rely on notebooks and manual entry, the best way to keep your receipts is to use technology that creates uniform reports and captures those receipts for easy retrieval and documentation.
Best Practices for Avoiding Penalties
Want to avoid IFTA audits and penalties? Consider these tips.
- File your returns on time every quarter
- Train drivers and administrative staff on procedures and software
- Do not regularly file amended returns
- Do not report major discrepancies in miles per gallon for the type of vehicle or fluctuations in quarterly reports.
- Close your accounts. In some jurisdictions, a closure automatically triggers an audit.
Keeping your reporting accurate and on time is the best way to ensure IFTA compliance.
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Trust our tax professionals to navigate the complexities of transportation tax with precision and dedication. Learn more about our leadership team and their extensive experience here.
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