What is IFTA? IFTA stands for International Fuel Tax Agreement. It is a cooperative arrangement between U.S. states and Canadian provinces, to simplify the reporting of fuel use by motor carriers that operate in more than one jurisdiction. This arrangement was introduced to create a systematic fuel tax collection within the framework of various IFTA member countries. It makes reporting and the collection of fuel taxes simpler for drivers operating in various states jurisdiction. The fuel taxes in all 10 provinces of Canada and 48 states of United States aren’t the same.
These fuel taxes diversify based on the place, so it is difficult for trucking company owners to file International Fuel Tax. In accordance with IFTA, trucking companies have to pay quarterly taxes to all states where these trucks have been moved or conveyed.
The taxes vary in different nations and is calculated based on miles driven by a truck in any specific state. In conventional days trucking companies has to rely upon the data maintained by motorists on a daily basis. Consequently, IFTA taxation was a nightmare for trucking company owners because they have to rely upon the data given by the drivers. They have to keep track of all trucking receipts for their fleet so, it was a time-consuming process.
In a case, if an error is made by owners or by motorists, the odds of error in your fuel tax reporting could cause an entirely new set of worries. Therefore, to automate and minimise mistakes while reporting and calculating IFTA Fuel Tax manually, some companies came up with a customised software program. These IFTA fuel tax reporting software were developed to handle all tasks associated with reporting, filing and calculating IFTA Fuel Tax.
With the advancement of the software the process of IFTa reporting is now more straightforward and the game of few mouse clicks. It is easy to use software, and it will help you do all of the calculation for you so that you can accurately file taxes in states. On the other hand, it can help you save a lot of time and money that is wasted in reporting IFTA forms. There are dealers in the marketplace that will offer you the IFTA software. Make sure that you opt for the best IFTA software for your needs. The licensing, software, reporting features, and user interface were some of the decision makers for buying an IFTA Fuel Tax Software. It is a sophisticated software technology used to simplify the tasks and procedures, needed to be followed by of the licensees operating within the jurisdiction of IFTA member states.
All carriers with IFTA accounts are required to deposit quarterly fuel tax reports. The carriers within a single IFTA account must be combined to file. Vehicles with IFTA account cannot file taxes. This report should list all the number of miles travelled within each jurisdiction and gallons. A zero performance report must nevertheless be filed on the vehicle in a case if the vehicle in a fleet isn’t used at all in a quarter.
As carrier vehicles buy fuel, the state taxes on the fuel are credited to the IFTA account. Therefore, a vehicle driver and trucking business owner need to keep track of fuel tax receipts very carefully because in case if the taxes are not paid on time or if they aren’t paid right that penalties are being imposed on them. Instead of paying fees to get tax reporting now you can use automated programs to deal with your trucking business with ease.