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Friday, April 19, 2013

Reefer Fuel And IFTA?

Reefer fuel is NOT included when filing IFTA when that fuel used to power the refrigeration unit of the trailer. The reefer fuel must always be purchased on a separate fuel receipt.

Never pump reefer fuel on the same fuel receipt when fueling your power unit. This will lower your mpg and cost you more IFTA fuel tax. Also, when the auditor discovers you combined reefer fuel into your power unit fuel, you will be assessed penalties and interest on your IFTA audit.

You are entitled to a federal tax paid refund on each gallon of reefer fuel. You will need the total number of gallons of reefer fuel purchased during the tax year to complete the refund form. The IRS will send you a check for the federal tax paid on each gallon of fuel. If you failed to file for this refund, you can file back for the past 3 years to claim your refund.

You will want to check with your base jurisdiction to see how they handle reefer fuel.  In Maryland, for example, if you only have one tank that propels your vehicle and runs the refrigeration unit, then all fuel is included in IFTA.  If you have 2 separate tanks, you need to fuel separately and make sure reefer is marked on the receipt.  Do not include the reefer fuel on IFTA and you will able to get a refund by filing a claim.

Have questions, contact Truck Services of North America and we will help you find the answers you need.  TSNA takes the paperwork out of your way! For more details contact us at TSNAmerica.com or call 803.386.0320.

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