What is IFTA? IFTA stands for International Fuel Tax Agreement. It’s a cooperative arrangement between U.S. states and Canadian provinces, to simplify the reporting of fuel use by motor carriers that operate in more than one jurisdiction. This agreement was introduced to create a fuel tax collection within the framework of various IFTA member states. It makes the collection and reporting of fuel taxes simpler for drivers operating in various nations jurisdiction. The fuel taxes in all 10 provinces of Canada and 48 states of United States aren’t the same. These fuel taxes diversify according to the place, so it is very difficult for trucking company owners to file International Fuel Tax.
In accordance with IFTA, trucking companies need to pay taxes to all states where these trucks are moved or conveyed. The taxes vary in different nations and is calculated based on miles driven by a truck in any specific state. In days trucking companies has to rely upon the manual data maintained by drivers on daily basis. IFTA taxation was a nightmare for trucking company owners because they have to rely upon the data given by the drivers. They have to keep the track of all trucking receipts for their fleet it was time-consuming process. In a case if any error is made by owners or by drivers, the chances of error in your fuel tax reporting may cause completely new set of concerns. Therefore, minimize and to automate mistakes while reporting and calculating IFTA Fuel Tax manually, some companies came up with a customized software program.
These IFTA fuel tax reporting software were developed to handle all tasks related to reporting, filing and calculating IFTA Fuel Tax. With the progress of these software the process of IFTa reporting is now simpler and game of mouse clicks. It is easy to use software and it will allow you to do the calculation for you personally that you can correctly file taxes in individual states. On the other hand, it will allow you to save in reporting IFTA forms lot of time and money that is wasted. There are dealers in the marketplace that will supply you with the IFTA software. Therefore, make sure that you opt for the best IFTA software for your needs. The licensing, software, reporting features, and user interface were a few of the decision makers for purchasing an IFTA Fuel Tax Software.
It’s a sophisticated software technology used to simplify the tasks and procedures, needed to be followed by the licensees operating within the jurisdiction of IFTA member countries. All carriers with IFTA accounts are required to deposit quarterly fuel tax reports. All the carriers within one IFTA accounts must be combined into one report to file. Vehicles with IFTA accounts cannot file taxes separately. This report must list of the number of gallons purchased and miles. A zero performance report must nevertheless be filed on the vehicle in a case if the vehicle in a fleet isn’t used at all in a quarter. As carrier vehicles purchase fuel, the state taxes on the fuel are credited to the IFTA account. Thus, a vehicle driver and trucking business owner have to keep the track of fuel tax receipts very carefully because if the taxes are not paid on time or if they are not paid true than penalties are being imposed on them. Instead of paying higher fees to get tax reporting now you can use automated programs to handle your trucking business with ease.