How to calculate your quarterly IFTA report?
Many companies are serving in the trucking or carriers industry that claims that they know and understand various aspects of IFTA reporting. However, as per our experience, we have observed that in case you are not filing IFTA, then you must learn about it and keep up with all the IFTA- related requirements along with jurisdictions.
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Today, various businesses still are not aware of the impact of wrong fuel tax data for IFTA. This, however, can lead to some of the serious situations such as suspension of your license. You may be asked to deposit a certain amount of fine or a higher fuel tax amount. It can further result in higher operational costs for motor carrier businesses.
What is IFTA?
IFTA- International Fuel Tax Agreement tends to pertain to an agreement between 48 states and 10 provinces of the USA and Canada respectively. This tax enables heavy carriers to report and file taxes based on the fuel consumed as well as your mileage- using a fuel tax license.
Working and Filing of IFTA Tax
Aside from the advantages of IFTA to trucking companies, the arrangement also makes sure authorities are properly paid for the use of their streets from heavy commercial vehicles.
Aside from the merits of IFTA into a company, in addition, it guarantees that the authorities are regularly compensated for travel in their place via hefty carriers. What is ifta tax, Additionally, under IFTA, you just have to report to the foundation authority, mentioning your fuel use it is easy to document your tax and disperse your funds in line with the conditions you traveled via.
The base jurisdiction is responsible for imposing compliance through a scheduled audit in terms of IFTA.
When should you file IFTA?
You have to file IFA every quarter, which means that you need to file four times every time. Following is the table of the due date for filing IFTA:
- 1st quarter- January to March
- 2nd quarter- April to June
- 3rd quarter- July to September
- 4th quarter- October to December
Consequences of Filing Late
Somehow, the common mistake you as a business owner does is delaying the filing of IFTA reporting or reporting at all. Filing your tax return late or not filing them at all can lead you to a fine of $50 or 10% of the tax liability, depending upon your case.
“You simply have to put one foot in front of the other and keep going. Put blinders on and plow straight ahead.” – George Lucas
Additionally, your fleet needs to run the risk in terms of audit, which might involve more of your time and documentation than just filing the report in the first place.
What do you need to file Your IFTA on Quarterly Basis?
Fuel Receipts: Try to itemize to gallons of fuel consumed in every state or jurisdiction you traveled across. The receipts should have the information including fuel type, purchase date, gallon purchased, VIN number, total amount.
Total Mileage Traveled: You must also specify the total miles you traveled to complete your order (per trip generally).
Trips Made: This includes the starting of the trip date as well as the trip ending date, routes, trip origin, and the destination.