Quarterly International Fuel Tax Agreement (IFTA) filing doesn't have to be a headache. Follow this comprehensive checklist to gather your mileage and fuel data correctly, and ensure a stress‑free submission.
What is IFTA and why it matters
First, a quick refresher. IFTA is an agreement among 48 U.S. states and 10 Canadian provinces (plus other member jurisdictions) that simplifies fuel‑use tax reporting for motor carriers operating across multiple jurisdictions.
Under IFTA, qualifying motor vehicles file one consolidated return each quarter with their "base jurisdiction" (the state/province where the carrier is licensed) detailing total miles traveled and fuel used in all member jurisdictions.
For carriers like you that assist trucking companies with permits, drug testing, supervisory services, etc., this is a key compliance item. Good reporting helps avoid penalties, audits and wasted admin time.
Who must file?
You'll want to check that your client vehicles meet the "qualified motor vehicle" criteria. Generally:
- A vehicle used in interstate/ inter‑jurisdiction commerce for transporting persons or property, and
- Either:
- Has two axles and a gross vehicle weight (GVW) or registered GVW exceeding 26,000 lbs (≈ 11,797 kg), or
- Has three or more axles, regardless of weight, or
- Is used in a combination where the total weight exceeds 26,000 lbs.
If the vehicle is purely local, personal pleasure, or doesn't cross jurisdictions, IFTA may not apply—but always confirm.
Also: even if a fleet did not operate in a quarter, many jurisdictions require a "zero‐miles" return.
Key deadlines (for U.S.‑based carriers)
While exact dates can vary by jurisdiction, typical due dates are:
- Q1 (Jan 1‑Mar 31): due by April 30.
- Q2 (Apr 1‑Jun 30): due by July 31.
- Q3 (Jul 1‑Sep 30): due by October 31.
- Q4 (Oct 1‑Dec 31): due by January (or next business day) of the following year.
Missing or late filings carry penalties.
The Checklist: What to gather before you file
Here's a step‑by‑step checklist that you (or your clients) should run through each quarter so filing is smooth.
1. Confirm your base jurisdiction & license
- Make sure the carrier has their IFTA license and decals for their qualified fleet from their base jurisdiction.
- Ensure the business name, mailing address, USDOT number, etc., are current. Some jurisdictions require updates for address/company changes.
2. Pull total miles for the quarter
For every qualified vehicle in the fleet:
- Record total miles traveled (or km) during the quarter.
- Break down by member jurisdiction (state/province) and, if travelled through non‑IFTA jurisdictions, include those miles too.
- Note any tax‑exempt miles (some jurisdictions allow deductions for trip permit miles or certain non‑taxable operations).
- If a vehicle had odometer issues, GPS malfunction, or similar, flag that and ensure you have documentation.
3. Pull fuel purchase/consumption data
For each qualified vehicle and fuel type (diesel, gas, biodiesel etc.), obtain total gallons (or litres) placed in fuel tank and used by the fleet.
- Break down by jurisdiction: gallons purchased and tax‑paid in each state/province where fuel was bought.
- Account for "ex‑tax gallons" (fuel purchased without paying tax at time of purchase, dyed fuel, farm use, etc.) where applicable.
- Retain receipts/invoices: date, seller's name & address, gallons/units, fuel type, price, vehicle unit number. These are vital for audit.
4. Calculate average fuel efficiency (optional, if manual calculation)
If your jurisdiction doesn't compute all figures automatically:
- Average MPG = Total Miles ÷ Total Gallons.
- Use this to allocate fuel consumed per jurisdiction: Fuel Consumed in State = Miles in State ÷ Avg MPG.
Tip: You can also use our IFTA calculator to calculate your quarterly IFTA fuel tax quickly and accurately. Our online calculator helps you determine tax liability for each jurisdiction based on your miles traveled and fuel purchased.
5. Fill out IFTA return (online or paper)
- Input total miles, miles by jurisdiction, total gallons, gallons by jurisdiction, etc.
- The system will apply each jurisdiction's tax rate to the consumed gallons to calculate tax due or refund.
- Double‑check entries: mis‑entered miles, fuel units can trigger audits or penalties.
6. Submit and pay (or request refund)
- If tax is owed, submit payment via the base jurisdiction's portal. In some states you file and pay electronically.
- If you over‑paid (credit/refund), request refund or carry forward credit as allowed.
7. Store and maintain records
- Keep all mileage records, fuel receipts, trip reports, GPS/ELD data, etc. Most jurisdictions require retention for at least four years.
- Ensure records support break‑downs by vehicle, unit number, dates, trips, jurisdictions. Inadequate records can lead to estimated tax assessments.
- If your fleet uses card locks, bulk fuel, or third‑party billing, ensure the vehicle/unit is traceable.
8. Audit readiness & review
- Before filing, review for any outlier data: very low MPG, large amounts of ex‑tax gallons, gaps in mileage records.
- If vehicles changed status (leased, sold, base jurisdiction changed) make sure that's accounted for.
- Stay updated on each jurisdiction's tax rates and any surcharges.
Common pitfalls & how you can help avoid them
Since your business helps carriers with operational compliance (permits, drug testing, etc.), you're well‑positioned to add real value by helping avoid these common mistakes:
- Late filing or non‑filing: A frequent issue. Even if no miles or operations occurred, many states require a "zero miles" return. Filing late may trigger the greater of $50 or 10% of net tax liability.
- Missing or incomplete mileage breakdown by jurisdiction: Without proper state‐by‐state miles, fuel allocation and tax owed might be wrong.
- Missing fuel purchase receipts or lack of detail: Auditors often reject receipts missing vehicle/unit number, seller name/address, fuel type.
- Incorrect or missing ex‑tax gallons tracking: Failing to identify fuel purchases that did not include tax (dyed fuel, farm use, etc.) leads to errors.
- Using PDF/ static image records only: Some jurisdictions require records in Excel/CSV or other electronic format from vehicle tracking systems.
- Vehicle odometer/GPS issues not flagged: If a vehicle's odometer is out of calibration or GPS fails, you still must document the issue otherwise mileage may be questioned.
- Not retaining records long enough: Always plan for audits, even after a vehicle is sold or a carrier ceases operations.
How Sky Transport Solutions can integrate this checklist
Given Sky Transport Solutions' expertise and operations in assisting trucking companies with permits, DOT supervision, etc., here are a few service/consulting ideas we can offer that tie in nicely:
- Provide a quarterly mileage & fuel tracking review: Ahead of each filing deadline, Sky Transport Solutions can check mileage logs, fuel receipts, unit numbers for completeness.
- Offer data‑upload and format support: Many fleets still do manual logs. Sky Transport Solutions can help standardize and convert to the required formats (e.g., CSV, Excel).
- Offer a pre‑audit readiness check: Review prior returns, look for gaps, recommend record corrections or missing items before the next quarter filed.
- Provide training & templates: For drivers, fleet managers, on how to record trip info, odometer reads, state line crossings, fuel purchase details.
- Serve as a compliance liaison: Keep your clients updated on changes in their base jurisdiction's IFTA rules, tax‑rates, due dates, dec‑annual decals.
- Package this as part of our "permits & DOT‑supervision" bundle: IFTA compliance is a natural complement to Sky Transport Solutions' existing services.