IFTA Reporting

 TMS Digital has helped trucking companies manage their IFTA reporting for well over 35 years.  As the trucking industry has evolved, so have we.

What is IFTA Reporting?

To cite the Arizona Department of Transportation https://azdot.gov/motor-vehicles/motor-carrier-services/international-fuel-tax-agreement-ifta

“The International Fuel Tax Agreement (IFTA) is an agreement between the member jurisdictions (all contiguous states, the District of Columbia and participating Canadian provinces) to simplify the reporting of motor fuel taxes by interstate motor carriers. IFTA reporting significantly reduces the paperwork and standardizes motor fuel tax reporting for both carriers and jurisdictions.

Before adoption of IFTA, motor carriers operating in multiple jurisdictions were required to apply for a license and file and remit their fuel taxes in accordance with each jurisdiction’s laws. Complying with these varied requirements was a difficult and extremely time-consuming process for an interstate carrier.”

In a nutshell, 48 states in the US (with the exception of Hawaii, Alaska and District of Columbia) and ten Canadian provinces require that you report how many miles you have driven through each state, and how much fuel you have purchased, again in each state.  You are required to report this information quarterly in order to pay or receive a tax credit.  Failure to do so can result in huge fines!  The fuel tax you pay is to compensate states for the use of their roads by your heavy equipment. In the past, each state had its own formula for calculating tax due, as well as its own due date. With IFTA, a more uniform system was set in place to make reporting easier.

 

IFTA Fuel Tax Program

IFTA is not the only one that made reporting easier. TMS Digital’s Mileage and Fuel Tax program, over the last 35 years, has transitioned from our users doing manual entry based on driver’s paperwork to importing fuel directly from your fuel card company and importing odometer readings and miles driven in each state from your ELD and merging them together. And those crazy formulas?  Yeah, you can import them, too!  Right from the IFTA site. In regards to all that messy paperwork and receipts, you just scan and save the image to your IFTA Manager folders. Then you just highlight your trip and see all of that trip’s backup copy with the push of Image button.