Trucking across state lines? Then you need to know about the International Fuel Tax Agreement (IFTA)! Here at All About Trucks, we’re breaking down the most common questions we get from our trucking customers about this essential agreement.
For a complete breakdown of IFTA, including visual examples and a step-by-step guide, watch our video below.
What is IFTA?
IFTA is an agreement between jurisdictions (states and provinces) that simplifies fuel tax reporting for motor carriers operating in more than one jurisdiction. If your truck weighs over 26,000 pounds and crosses state lines, you need an IFTA license and decals.
How does IFTA work and how do I stay compliant?
To report your fuel usage accurately, we recommend using a fuel card, keeping detailed fuel receipts, or utilizing an ELD provider. Remember, you need to keep your records for at least four years, so download those reports and store them safely!
What are the penalties for not filing IFTA on time?
Revocation of your IFTA license: This can happen as quickly as a month and a half after a missed deadline.Account suspension: Your account can be suspended, further complicating your operations.
Bond requirement: You may be required to obtain a bond, which can be difficult to get rid of.
What are some common mistakes when filing IFTA returns?
Accuracy is key! We often see drivers rounding up their miles or fuel amounts, or not reporting the exact figures from their fuel cards or receipts. These discrepancies can lead to hefty fines and penalties. Need help? Give us a call at 224-238-3155!
How do states handle IFTA audits?
Audit procedures vary by state. If you’re an Illinois resident with an Illinois IFTA account, you’ll only be audited in Illinois. Concerned about an audit? Reach out to us, and we’ll help you determine if you’re due.
How can I make IFTA reporting easier and more accurate?
ELD devices and fuel cards are your best friends! An ELD can accurately track your mileage, and a fuel card provides precise fuel usage data. And remember to download those reports regularly!
What do I need to open an IFTA account in Illinois?
You’ll need:
Three proofs of address
Your social security number
A routing and account number to order your IFTA stickers
What about IFTA renewal?
To renew, we’ll confirm your address and the number of stickers you need for the upcoming year.
Don’t Forget!
Accurate reporting is crucial to avoid penalties.
Keep those records for at least four years!
ELDs and fuel cards simplify the process.
Have more questions? give us a call at 224-238-3155.
