Running interstate? IFTA is part of your life. Here’s what you need to know.
What is IFTA?
The International Fuel Tax Agreement simplifies fuel tax reporting for carriers operating in multiple states/provinces.
Who Needs IFTA?
Qualified motor vehicles:
- Used for interstate commerce
- Over 26,000 lbs OR
- Has 3+ axles regardless of weight OR
- Used in combination over 26,000 lbs
How It Works
Basic Concept
- You buy fuel (pay tax in that state)
- You travel through multiple states
- Each state gets tax based on miles driven there
- IFTA reconciles what you paid vs what you owe
Quarterly Filing
Report every quarter:
- Total miles in each state
- Total fuel purchased in each state
- Calculate net tax owed/refund
Record Keeping
Required Records
- Fuel receipts (keep all of them!)
- Mileage by state
- Trip records
- Vehicle identification
How Long to Keep
- 4 years minimum
- Organized and accessible
- Electronic OK
Getting IFTA Credentials
- Apply through your base state
- Receive license and decals
- Display decals on both sides of truck
- Renew annually
Common Mistakes
- Not keeping all fuel receipts
- Inaccurate state mileage
- Missing quarterly deadlines
- Wrong vehicle identification
Penalties
- Late filing fees
- Interest on unpaid tax
- Potential license revocation
- Audit troubles
Using Technology
- ELD often tracks state miles
- IFTA software simplifies reporting
- Fleet management systems help
- Keep paper backup anyway
Stay organized - audits happen!
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