1. What is IFTA?
IFTA is the International Fuel Tax Agreement. Through the IFTA, member jurisdictions act cooperatively to administer and collect motor fuel use taxes.
2. Who needs to file an IFTA return?
You need an IFTA license if you travel in two or more member jurisdictions, and if your vehicle either weighs more than 26,000 pounds, OR has three or more axles, regardless of weight.
3. Which jurisdictions are members of IFTA?
The 48 contiguous states of the United States and the 10 Canadian Provinces are the members of IFTA.
4. Should I apply for an IFTA license?
If you are based in a member jurisdiction and operate a qualified motor vehicle in 2 or more member jurisdictions, yes. If you usually operate your vehicles only in one jurisdiction, but make occasional trips outside the base jurisdiction, you may elect to purchase trip permits for that occasional travel. Permitting services can usually be contacted from any major truck stop. Contact a permitting service for rates.
5. What is a qualified motor vehicle?
A Qualified Motor Vehicle is a motor vehicle used, designed, or maintained for transportation of persons or property and:
- Has two axles and a gross vehicle weight or registered gross vehicle weight exceeding 26,000 pounds or 11,797 kilograms; or
- Had three or more axles regardless of weight; or
- Is used in combination, when the weight of such combination exceeds 26,000 pounds or 11,797 kilograms gross vehicle or registered gross vehicle weight.
6. Where should I apply for IFTA license?
You should contact the jurisdiction where you are based. Your base jurisdiction is the jurisdiction where you have your qualified motor vehicles registered, where you have some travel, and where the operational control and operational records are maintained or can be made available.
7. How can I apply for an IFTA license and decals?
Find the IFTA application and instructions at www.modot.org/mcs/IFTA or call Motor Carrier Services at 1-866-831-6277 and select Option 2 to receive a copy by mail. Send the completed application by e-mail, mail or fax. Click the Contact Us button on the left side of this page for addresses and fax numbers.
8. What if I have one qualified motors vehicle registered in more than one jurisdiction?
It is important that you contact one of those jurisdictions. You may be able to consolidate your operations under one license. The jurisdiction you contact will assist you and give you information on how that can be accomplished.
9. How does IFTA process?
- Carrier submits license application to base jurisdiction
- Base jurisdiction reviews and processes license application of qualified candidate
- Base jurisdiction issues one IFTA license to carrier and 2 decals for each QMV operated
- Licensee operates and prepares quarterly IFTA tax return with base jurisdiction
- Licensee files tax return with base jurisdiction and remits the final amount.
- Base jurisdiction reviews and processes tax return and remittance
- Base jurisdiction processes all other tax returns received
- At the end of each month base jurisdiction uploads to the CH or sends transmittal reports to all other member jurisdictions.
- Base jurisdiction uploads or sends the transmittal report to Jurisdiction AA and all other member jurisdictions
- Base jurisdiction processes all transmittal reports and payments received from other jurisdictions.
- Base jurisdiction sends refunds to licensees and issues assessments for any taxes due.
10. When are Audits performed?
- The base jurisdiction will conduct audits for itself and all member jurisdictions
- Jurisdictions must complete audits on an average of 3% of its licensees each year
- Of the 3%, 25% of the audits must involve high-distance accounts
- Of the 3%, 15% of the audits must involve low-distance accounts
- Audit monies are transmitted with the monthly transmittal reports; audit reports are sent upon completion
11. When are the IFTA reports due?
|Reporting Quarter||Due Date|
|January - March||April 30|
|April - June||July 31|
|July - September||October 31|
|October - December||January 31|
- To avoid penalty for late filing, the tax reports must be postmarked no later than midnight on the date indicated. If the last day of the month falls on a Saturday, Sunday or legal holiday, the next business day will be considered as filed timely.
- All licensees must submit the IFTA tax report every quarter. A report must be submitted each quarter even if:
- No taxable miles were traveled,
- All miles traveled were in respective base jurisdiction.
12. Do I file a quarterly fuel tax report if I didn't run during the quarter?
Yes, you must submit a "zero" report even if no taxable fuel was used.
13. Do I need to file a quarterly fuel tax return when I am leased and operating under the lessee's IFTA license?
Yes, you must file a "NO OPERATION" return when you have a current IFTA license and decal issued in your name and you ran under a lessee's IFTA license whose return will include the miles you travelled and gallons of fuel that you purchased. If you continue to lease, you can send a letter to Motor Carrier Services requesting cancellation of your IFTA license.
14. What is the penalty and interest rate for filing a late quarterly fuel tax report?
A penalty of $50.00 or ten percent of the net tax liability, whichever is greater, will be assessed on late-filed reports, failure to file, or for underpayment of tax due. If the net tax liability is zero or a credit, the late filing penalty will still be $50.00.
To avoid penalty for late filing, the tax reports must be postmarked no later than midnight on the date indicated. If the last day of the month falls on a Saturday, Sunday or legal holiday, the next business day will be considered as filed timely.
Interest is assessed on all delinquent taxes due each jurisdiction. The interest rate is one percent per month. Interest will be calculated from the date the tax was due for each month or fraction of a month until paid.
Reports will be furnished each quarter indicating the current tax rates for each member jurisdiction. Failure to receive the tax report does not relieve you from the obligation of filing in a timely manner or submitting the reports.
15. How Do I obtain a return?
- Your base jurisdiction will mail a return to your mailing address at the close of each reporting period. If you do not receive your return 15 days before the due date, you may contact the Motor Carrier Section to obtain the correct form.
- IFTA-100-MN, IFTA Quarterly Fuel Use Tax Report
- IFTA-100-MN, Instructions for completing the IFTA Quarterly Fuel Use Tax Report
- IFTA-101-MN, IFTA Quarterly Fuel Use Tax Schedule
- IFTA-101-MN, Instructions for completing the IFTA Quarterly Fuel Use Tax Schedule
- Failure to receive the return does not relieve you from the obligation of filing in a timely manner or submitting the return.
16. What records will I need?
You must maintain records that will adequately document all of the information you provide on your quarterly fuel tax reports.
Generally, you must maintain records to document all miles you travel - including the date of your trip, route of travel, total trip miles, and miles traveled in each jurisdiction. You must also keep all receipts for fuel you buy and place into your vehicles. If you maintain a bulk fuel storage facility, you must maintain additional records.
17. My IFTA License expires December 31, but I've heard there is an extension until February 28. Is this true?
Yes. You have until March 1 of each year to carry a current IFTA license and display the current year's decals on your vehicles, provided you have applied on time to renew your IFTA license and your account is in good standing.
18. Why has my IFTA license been revoked?
- If you do not comply with provisions of the IFTA Agreement, base jurisdiction may revoke your license. They may take this action if you do not:
- Comply with all provisions of the IFTA Agreement and your respective base jurisdiction fuel tax laws and regulations,
- File a quarterly fuel tax report,
- Pay all taxes due all member jurisdictions,
- Pay the amount due on an audit billing or fail to petition for reconsideration within the established time period, or
- Operate interstate.
- Your base jurisdiction will notify all IFTA jurisdictions if they revoke your license. If you operate a qualified motor vehicle in an IFTA jurisdiction after your license has been revoked, you may be subject to a penalty, fine or citation, depending on the jurisdiction's laws.
19. What is information is required before I file IFTA return?
- Total miles, taxable and nontaxable, traveled by the licensee's qualified motor vehicles in all jurisdictions, IFTA and non-IFTA, including trip permit miles;
- Total gallons of fuel consumed, taxable and nontaxable, by the licensee's qualified motor vehicles in all jurisdictions, IFTA and non-IFTA;
- Total miles and taxable miles traveled in each member jurisdiction;
- Taxable gallons consumed in each member jurisdiction;
- Tax-paid gallons purchased in each member jurisdiction.
20. Can I upload all my QMV on the website at one time?
Yes, you can download the Excel Template from the website, (under Multiple Vehicles tab), fill in the excel spreadsheet and then upload the same on the website by clicking 'browse' option
21. What is a tax paid gallon purchase?
Any gallon of fuel purchased that had tax paid at the pump. The purchase must be supported by a detailed fuel receipt unless the fuel was removed from a metered bulk storage tank containing tax-paid fuel you used in your qualified motor vehicles for the particular quarter.
22. What miles are non-taxable?
Fuel trip permit miles are not taxable miles in any jurisdiction. Include fuel permit miles in the return's total miles section but do not include them in the taxable miles for the jurisdiction that issued the permit. Toll miles are taxable miles; toll fees are not fuel taxes. They are fees in exchange for the opportunity to use a toll road.
23. Will the Exempt Distance (in miles) show in my IFTA return?
Exempted Miles will be shown while you are filing for your company's IFTA, but it will not be shows in the actual IFTA form that you will submit for your tax purpose.
In the IFTA tax 101-MN; you will see the total miles and the total taxable miles which will include the calculation of the exempted miles.
It is your responsibility to contact jurisdictions, individually, to determine exempt miles. It is also your responsibility to maintain records of exemptions for future review.
24. I have an IFTA license and both a diesel and gasoline unit. Do I have to file a tax return on both fuel types?
Yes, you must file a separate return each calendar quarter for each fuel type indicated on your initial or renewal application even when no miles were accrued that quarter.
On our website, you can file for all fuel types at the same time, but when you print out the paper IFTA 101-MN, you will have different forms for all different fuel types.
Please make sure, that you file each fuel type at the same time.
25. Will a sub charge be shown in the paper filing?
A surcharge is a separate tax in addition to the fuel tax. The surcharge is based on taxable gallons. Enter –0– on the Surcharge row for Total Member Jurisdiction Miles.
Jurisdictions having a surcharge are listed twice on the IFTA Tax Rate Sheet and are noted "SurChg". These jurisdictions should be listed on the return in the order they appear on the tax rate sheet. The following jurisdictions have a surcharge: Indiana, Kentucky, and Virginia
26. Can I not E-file IFTA through your website?
No, for IFTA we only allow paper filing. Hence we will fill out the tax return with the answers that we have received. You can print and mail your return. We will provide clear instructions on how to do this when you print your return.
27. Can't I simply file directly through my state's website?
Many states do not yet allow online filing, though some do. Of the states that do offer online IFTA filing services, most assume you have already performed the state calculations. The state forms only give you the ability to enter your mileage in its aggregated form. Our website is designed to make calculating and preparing your IFTA return painless.
28. Will 'Error Check' all my data?
No, 'Error Check' option is only to make sure that the information provided by you matches the format required by the IRS.
29. How long will this take me?
If you are a small carrier who travels in 10 - 20 states, it should take you about 15 minutes, once you have all your miles and gallons. For example, if you have miles driven and gallons purchased already totaled by state, and you only traveled in 10 or 12 states, then you can easily be complete in 5 minutes. If you are a new user to TaxIFTA, registration will take only a few minutes.
30. Does this service work for all fuel types?
Yes, our website software allows you to file for all fuel types besides gasoline and diesel - biodiesel, E85, E90, A55 for example.
31. I need to file a late IFTA return; can I use TaxIFTA for past quarters?
Absolutely. We can prepare any quarters since Q1 2010. Make sure you have your miles and gallons collected for the quarter you wish to file.
32. Does TaxIFTA only cost $19.99?
We have two packages for our clients. One where you can pay $19.99 for only one return or you can pay $69.99 for unlimited IFTA returns and amendments. You can choose either option depending on your needs
33. Are there any additional or "hidden" fees?
No. There are no additional fees. And this is very simple...you enter your data, pay $19.99 or $69.99 and print your return. We will only charge you for what you order and if you choose more than one filing option, every charge is clearly outlined for you - prior to payment.
34. What happens if I forgot to file?
IFTA can be filed at any time after the deadline has passed but the tax due may be subject to penalties and interest. The penalty for failing to file IFTA quarterly return in a timely manner is equal the interest is calculated at 1 percent a month or any fraction thereof.