Monday, January 28, 2013

How To Avoid Paying Quarterly IFTA Taxes

Ever wonder you could to do avoid paying Quarterly IFTA taxes at the end of the quarter. While we hear many ideas and suggestions, the simple answer is to purchase your fuel where you run your miles.

The way IFTA works is as a "pay now or pay later" system. At the end of the quarter, the licensee completes their fuel tax report, listing all miles traveled in all participating jurisdictions and lists all gallons purchased, then the average fuel mileage is applied to the miles traveled to determine the tax liability to each jurisdiction.  When the majority of the fuel is purchased in states where the fuel tax rates are lower, it will cause the tax due at the end of the quarter will be higher. When you purchase the fuel in the states where you run the miles your tax due at the end of the quarter will be lower; hence the pay now or pay later system.

As a premier processing agency, Truck Services of North America can assist with your your IFTA Taxes.  TSNA takes the paperwork out of your way. For more details contact us at or call 803.386.0320.

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