COMMON IFTA FUEL TAX MISTAKES
The International Fuel Tax Agreement is a program that allows for the reporting and payment of fuel taxes for vehicles that operate in multiple jurisdictions. However, even experienced trucking companies can make mistakes while filing IFTA fuel taxes. So, before you start this quarter’s IFTA reports, let’s talk about the common mistakes motor carriers make on IFTA Fuel Tax Return so you can avoid them.
NOT KEEPING ACCURATE RECORDS
One of the most common mistakes made is not keeping accurate records of fuel purchases and miles traveled. To properly report and pay IFTA fuel taxes, trucking companies need to have detailed records of the number of gallons of fuel purchased, the date and location of the purchase, and the odometer reading of the vehicle at the time of the purchase.
FAILING TO FILE ON TIME
Reports are typically due every quarter, and failing to file on time can result in late fees and penalties.
NOT KEEPING TRACK OF FUEL TAX CREDIT
Some states offer a fuel tax credit for fuel used in their State. But not all states offer it. Trucking companies need to keep track of fuel tax credits to claim them correctly.
NOT CORRECTLY IDENTIFYING THE VEHICLE
Correctly identify the vehicle on your IFTA reports. These can be achieved through the correct license plate number or vehicle identification number (VIN).
WRAPPING UP
IFTA fuel taxes can be complicated, but by avoiding these common mistakes, trucking companies can ensure they report and pay their fuel taxes correctly. It also avoids potential penalties and fines while ensuring compliance with IFTA regulations.
Global Multi Services helps trucking companies file their Quarterly IFTA Fuel Tax. We are delighted to work with you and help your business run smoothly.
