Integrated ProMiles® Tax Reporting

How do I keep track of IFTA?

There are a number of ways to track your IFTA mileage, but GPSTrackIt is one of the easiest and most efficient. GPSTrackIt is a GPS-based fleet tracking software that helps you keep track of your vehicles and drivers on a map in real time. With GPSTrackIt, you can easily generate your quarterly fuel tax reports, ensuring compliance with IFTA regulations.

What are IFTA reports?

IFTA stands for the International Fuel Tax Agreement. This is an agreement between individual US states and Canadian provinces to simplify the process of filing and paying taxes on fuel used in commercial vehicles traveling between jurisdictions. 

IFTA reports are filed quarterly, and detail the total miles driven in each jurisdiction, as well as the amount of fuel used. This information is used to calculate the amount of tax due in each jurisdiction.

How much are IFTA taxes?

When you’re traveling on the open road, it’s important to stay informed about the taxes you may need to pay. One such tax is IFTA, which is assessed on commercial truckers traveling between states.

The amount of IFTA tax you owe depends on the amount of fuel you use and the miles driven in different states or provinces. The actual amount you pay will be based on the rates in each jurisdiction you drive through.

Are IFTA taxes deductible?

There is some debate over whether IFTA taxes are deductible. The IRS has not specifically addressed this issue, but there are a few factors to consider.

For one, the deduction for business expenses is based on whether the expense is ordinary and necessary. Driving between states is clearly an ordinary activity for commercial truckers, but it’s not clear whether paying IFTA taxes is considered a necessary expense.

Ultimately, it may be up to the discretion of the IRS auditor as to whether IFTA taxes can be deducted as a business expense. For more information, consult with a tax professional.

Why Is There a Surcharge Tax for Some IFTA Jurisdictions?

When a truck driver passes through a state, they are required to pay a use tax. The tax is assessed on the fuel that is used in the trucks, and it’s meant to help fund infrastructure projects in the states that the trucks travel through.

The problem is that not all states assess this tax equally. In some cases, there is an additional surcharge tax for certain jurisdictions, such as Kentucky, Virginia, and Indiana. This can be confusing and frustrating for truck drivers, who are already dealing with a complex system.

There are a few reasons why some states have surcharge taxes. In some cases, it’s because the state has higher fuel taxes than other states. In other cases, it’s because the state has stricter regulations or more expensive road tolls.

Whatever the reason may be, it’s important for truck drivers to be aware of these surcharge taxes. If you’re traveling through a state with a surcharge tax, be sure to factor that into your budget. And if you have any questions about the tax laws in your area, be sure to speak with an accountant or tax specialist.

How do you calculate taxable IFTA gallons?

To calculate your vehicle’s taxable gallons used, you’ll need to divide your total taxable miles by your overall fuel mileage. Then, you’ll subtract the total tax for paid gallons purchased in order to get net taxable gallons. Finally, once you know your net taxable gallons, you can multiply this number by the state tax rate to find your owed taxes.

Our ProMiles integration automates this process, making it easy for fleet managers to stay compliant with IFTA regulations.

What happens in an IFTA audit?

An IFTA audit is used to ensure that you’re accurately reporting taxes on the fuel you’ve used for business purposes. If you’re not properly reporting your fuel usage, you could face fines and penalties.

Here’s what to expect during an IFTA audit: An auditor will check if the GPS is using proper stage geofencing, if the GPS is meeting a certain time interval for every ping, if the GPS odometer matches the vehicle odometer, and if the latitude and longitude recorded are accurate.

What happens if you fail to properly file IFTA taxes?

If you fail to properly file your IFTA taxes, you may face significant penalties. You could be assessed interest and penalties on the unpaid taxes, late taxes, or failure to file.

This includes a penalty of $50 or 10% of the taxes owed (whichever is greater) on late-filed reports, failure to file, or for underpayment of taxes.