IFTA
International Fuel Tax Agreement What is It?
The International Fuel Tax Agreement, simply shortened as IFTA, refers to an agreement that the majority of US states (48) and a few Canadian provinces (10) have signed off on. It was created specifically for truckers who often haul across state lines. This allows them to pay their vehicle taxes with a single fuel tax license instead of obtaining a fuel tax permit from each state. In other words, the carrier registers in one state but when traveling through another participating state, the fuel tax bought there is credited to the account.
The state calculates fuel taxes by using both the driver’s daily mileage records and the fuel receipts. They electronically file the taxes in accordance with the state, and the driver pays the taxes directly to the state.
How does it Work?
IRP truck Services makes the process very simple for you. We would require you to submit the sheets with your trips to us, and we will handle the IFTA Tax Filing! We will also provide you with the cost analysis printouts so that you are able to do your charge backs. Once we finalize and complete the filing and everything else, all records will be returned to you.