What Is IFTA — And Why It Actually Matters

What Does IFTA Stand For?

IFTA stands for the International Fuel Tax Agreement. It’s an agreement among 48 U.S. states and 10 Canadian provinces that simplifies how fuel taxes are reported and paid by motor carriers operating in multiple jurisdictions.

Translation: instead of filing a separate fuel tax return for every single state you drove through, you file one report through your base state. That base state then divvies up the taxes you owe to the states you traveled in, based on your miles and fuel purchases.

Who Needs to Register for IFTA?

You’re required to register for IFTA if you operate a qualified motor vehicle in more than one IFTA jurisdiction. A qualified vehicle is typically one that:

• Has two axles and a GVW over 26,000 lbs, or

• Has three or more axles, regardless of weight, or

• Is used in combination (like a truck and trailer) with a total GVW over 26,000 lbs

So, if you’re a trucking company, hotshot hauler, or any fleet operating across state lines — chances are, IFTA applies to you.

Why IFTA Is Important

Sure, it’s paperwork — but it’s not optional. Here’s why IFTA matters:

• Compliance: Missing IFTA deadlines or failing to report accurately can result in hefty fines or even suspension of your IFTA license.

• Audits: IFTA audits are real, and poor recordkeeping is a common trigger. Staying compliant keeps you off the radar.

• Efficiency: Done right, IFTA simplifies your tax reporting and prevents double taxation across states.

Bottom line: IFTA is how the government makes sure you’re paying your fair share of fuel tax — no more, no less.

What You Need to File

Each quarter, you’ll need to file an IFTA return that includes:

• Miles driven in each jurisdiction

• Gallons purchased in each jurisdiction

• Fuel type used (diesel, gas, etc.)

• Receipts and trip logs to back it all up

Accurate records are everything. Sloppy tracking leads to incorrect filings, penalties, and a big headache later.

When Are IFTA Reports Due?

IFTA reports are due quarterly, with these deadlines:

• Q1: April 30

• Q2: July 31

• Q3: October 31

• Q4: January 31

Even if you didn’t operate during a quarter, you still have to file a zero report — or risk non-filing penalties.

Final Word: Don’t Ignore IFTA

It may be a hassle, but IFTA is here to stay. Get ahead of it now by:

• Keeping detailed fuel receipts and mileage logs

• Using a solid ELD or tracking system

• Filing on time — every time

Need help figuring it out or staying compliant? That’s what we do.
Reach out to DOT Consulting Solutions — we’ll keep your operation on the road and out of hot water.