What Are Non-Taxable and Exempt IFTA Miles?

Now that the IFTA first quarter has officially come and gone, it’s time to start getting those IFTA reports together. And when you’re doing those reports, figuring out which miles are taxable and which aren’t can be a daunting task.

So check out the guide below to non-taxable IFTA miles to see which of your miles are going to cost you and which miles you don’t need to report!

What Do I Need on my IFTA Report?

On your IFTA report, you will need to include the following information:

• Total Miles- The total miles traveled in each jurisdiction for each fuel type
• Total Taxable Miles- Total miles traveled in each jurisdiction minus the non-taxable miles
• Total Gallons Consumed- Divide your total taxable mileage by your estimated mpg 
• Total Gallons Purchased- Enter the total gallons purchased for all qualified motor vehicles
• Net Taxable Gallons- The difference between net gallons consumed and net gallons purchased 

What Are Non-Taxable IFTA Miles?

So what are non-taxable IFTA miles exactly? Well, non-taxable miles are miles that you drove that do not need to be included on your IFTA report. Why do these miles not need to be included on your report? Take a look.

Do you use fuel permits at all when driving? Well if you do, any mileage driven while using fuel permits is not taxable. Now, you’ll still want to include any mileage driven in your total miles section, it just won’t be included in the taxable miles section for the jurisdiction where you purchased the permit.

But what about toll miles? Are toll miles taxable? Another good question, and one would think (incorrectly, that is) that toll miles wouldn’t be taxable, since you’re basically already paying taxes on those miles, right? Wrong. Even though you have to pay to drive on toll roads, the amount you pay doesn't go towards fuel taxes. Those fees are just paid in exchange for using a particular road. So make sure you're including all toll mileage in your taxable miles.

Some other states have other rules for specific areas, vehicles, or roads that are non-taxable areas, and remember, if a state doesn’t participate in IFTA, those miles are non-taxable, too!

So hopefully now you know exactly which miles you need to include as taxable on your IFTA report, and which miles you don’t. But if you have any other questions or are still a bit confused, just give us a call at 803.386.0320 and we’ll help you out. And don’t forget, we can file your IFTA reports for you!

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IFTA: How to Get Ready for the End of the 1st Quarter

Well just like that, another IFTA quarter has come and gone, and it’s about ready to be put in the books (so to speak).

But the real question is, have you been keeping up with this quarter’s IFTA information correctly in your books?

If you haven’t been keeping track of anything other than the mileage you’ve driven in your logbook, then the answer is probably not.

But don’t worry, your friends at TSNAmerica are here to save the day yet again, and we can help you get ready for the end of the 1st quarter. How? Keep reading and find out!

The IFTA 1st Quarter is Coming to a Close

If you'd like to avoid running around in a frenzied panic before the deadline like last quarter, you'll need to have all your information ready beforehand.

The first thing you'll need to have is an accurate breakdown of your mileage. This could be kept through log books, E-logs, or even with trip sheets.

The second thing you’ll need to have is your fuel receipts, and those receipts will need to have the following information:

• Place/state of purchase
• Address of purchase
• Type of fuel
• Amount of fuel 
• Amount of sale 

Note: These do not have to be the original copies of your receipts, you can make your own copies! Although the original copies do need to be kept in a safe place in your records, just in case you do ever face an IFTA audit.

And if you aren’t sure of the best way to keep copies of your receipts, check out TruckLogics! With TruckLogics' trucking management program, you can easily upload pictures of your fuel receipts straight from your phone with their mobile application.

Sure sounds better than keeping a pile of wadded-up receipts on your dashboard, huh?

How Can I Get Someone to File my IFTA Return for Me?

Now there’s the million-dollar question. Well, maybe not a million-dollar question; we sure hope your IFTA taxes aren’t that much! But anyway, you get the gist -- it’s a great question. And the answer is easier than you might think. Just call us! That’s right, if you need an IFTA specialist to help you get your IFTA return taken care of, just give us a ring.

We’re just one ring away. Or maybe two -- but either way we’re pretty quick about picking up the phone. Try us and see!

All you’ll need to do is collect your mileage records and fuel records, then send them all over to us and we’ll get to work! Just give us a call today to get started or you can simply fill out our service request form.

So don’t let the end of the IFTA quarter get you down. Start getting your information together and give us a call at 803.386.0320! Sure beats doing it yourself, right?

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Illinois IFTA Penalty And Interest Waiver Granted

On April 23, 2013 the Illinois Department of Revenue issued a statement regarding the Spring Flood of 2013 and IFTA.  It granted a waiver for the International Fuel Tax Agreement penalty and interest to Illinois-based individuals and businesses who were directly impacted by the flood.  The waiver applies to late returns or payments made between April 19th July 31st.

See the full release for more details.

Truck Services of North America works to help you stay informed of situations that may affect you. For more information about any of our other services, contact us at TSNAmerica.com, email support@TSNAmerica.com or call 803.386.0320.

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Tips To Help You Prepare 1st Quarter IFTA

IFTA is the International Fuel Tax Agreement and is a tax collection agreement by and among the 48 contiguous States and the 10 Canadian Provinces bordering the US, in which motor fuels use taxation laws are uniform with respect to qualified motor vehicles operated in more than one member jurisdiction.

Who Must File?

An interstate motor carrier operating "qualified motor vehicles" between at least 2 member jurisdictions (The 48 contiguous states of the US and 10 Canadian provinces) must have an international fuel tax agreement (IFTA) license and decals issued by their base jurisdiction.

Qualified motor vehicle means a motor vehicle or combination of vehicles used, designed, or maintained for the transportation of persons or property having:

• Two axles and a gross vehicle weight exceeding 26,000 pounds; 
• Two axles and a registered weight exceeding 26,000 pounds; 
• Three or more axles regardless of weight; or 
• A combination weight exceeding 26,000 pounds.

Recreational vehicles are exempt from IFTA fuel tax reporting.

Base jurisdiction means the member jurisdiction where:

• Qualified motor vehicles are based for vehicle registration purposes;
• Operational control and operational records of the licensee’s qualified motor vehicles are maintained or can be made available in case of an audit; and 
• Some mileage is accrued by qualified motor vehicles within the fleet travelling through that jurisdiction  

If you have the IFTA license, you must file the Quarterly IFTA tax return to your base jurisdiction, even if the licensee does not operate or purchase any taxable fuel in an IFTA member jurisdiction during the specific quarter. You will need to separate your mileage and fuel records for each fuel type. March 31, 2013 marked the end of the 1st Quarter for IFTA and the deadline to file your return is April 30, 2013. If you operate in New York, Kentucky, New Mexico, or Oregon you will also need to file a Weight Distance Tax Return, in each state and that deadline is also April 30th.

What you need:   

1. Mileage log-whether you use manual trip sheets, GPS, or electronic trip sheets; it is not only necessary to have in order to file your quarterly IFTA, but you will need these if you are ever audited.
2. Fuel Receipts-you will need to know how many gallons of fuel were purchased in each state.

Options to prepare and file your return:

1. Do it yourself, you can calculate your own return by hand and mail or e-file the return. To find out the current tax rate for each state go to www.iftach.org.
2. Use a software program that will calculate your return for you, like ExpressIFTA.com, which will reduce the chances of miscalculations.
3. Use Truck Services of North America and let us take care of preparing and filing the return for you.

Regardless of the method you choose to file your quarterly tax returns, it is crucial to maintain accurate records and file your returns on time to avoid fines and penalties.

As a premier processing agency, Truck Services of North America can set up your IFTA accounts and file your Quarterly IFTA Taxes for you.  TSNA takes the paperwork out of your way. Check out all our services at TSNAmerica.com and fill out the Service Request Form, email us at support@TSNAmerica.com or call 803.386.0320.

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What Information Is Required on IFTA Distance Records?

Detailed distance records which show operations on an individual-vehicle basis must contain, but not be limited to:

• Taxable and non-taxable usage of fuel; 
• Distance traveled for taxable and non-taxable use; and 
• Distance recaps for each vehicle for each jurisdiction in which the vehicle operated.

An acceptable distance accounting system is required and supporting information should include:

• Date of trip (starting and ending); 
• Trip origin and destination; 
• Route of travel (may be waived by base jurisdiction);
• Beginning and ending odometer or hubodometer reading of the trip (may be waived by base jurisdiction);
• Total trip miles/kilometers; 
• Miles/kilometers by jurisdiction; 
• Unit number or vehicle identification number; 
• Vehicle fleet number; 
• Registrant's name; and 
• may include additional information at the discretion of the base jurisdiction.  

As a premier processing agency, Truck Services of North America can set up your IFTA accounts and file your Quarterly IFTA Taxes for you.  TSNA takes the paperwork out of your way. Check out all our services at TSNAmerica.com and fill out the Service Request Form, email us at support@TSNAmerica.com or call 803.386.0320.

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What Information Is Required on IFTA Fuel Records?

Complete fuel records of all motor fuel purchased, received, and used in the conduct of its business must be maintained. Separate totals must be compiled for each motor fuel type and retail fuel purchases and bulk fuel purchases are to be accounted for separately.

The fuel records shall contain, but not be limited to:

• The date of each receipt of fuel;
• The number of gallons or liters received; 
• The type of fuel; and
• The vehicle or equipment into which the fuel was placed.

Retail purchases must be supported by a receipt or invoice, credit card receipt,

automated vendor generated invoice or transaction listing, or microfilm/microfiche of the receipt or invoice. Receipts that have been altered or indicate erasures are not accepted for tax-paid credits unless the licensee can demonstrate the receipt is

valid. An acceptable receipt or invoice must include, but shall not be limited to, the following:

• Date of purchase; 
• Seller's name and address; 
• Number of gallons or liters purchased;
• Fuel type; 
• Price per gallon or liter or total amount of sale; 
• Unit numbers; and
• Purchaser's name   

A licensee may claim a tax-paid credit on the IFTA tax return for bulk fuel only

when the bulk storage tank from which the fuel is withdrawn is owned, leased or

controlled by the licensee; the fuel is placed into the fuel tank of a qualified motor

vehicle; and either the purchase price of the fuel includes tax paid to the member

jurisdiction where the bulk fuel storage tank is located or the licensee has paid

fuel tax to the member jurisdiction where the bulk fuel storage tank is located.

Bulk fuel records must contain the following:

• Date of withdrawal; 
• Number of gallons or liters; 
• Fuel type; 
• Unit number; and 
• Purchase and inventory records to substantiate that tax was paid on all bulk purchases.

As a premier processing agency, Truck Services of North America can set up your IFTA accounts and file your Quarterly IFTA Taxes for you.  TSNA takes the paperwork out of your way. Check out all our services at TSNAmerica.com and fill out the Service Request Form, email us at support@TSNAmerica.com or call 803.386.0320.

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