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Product Description
The International Fuel Tax Agreement (IFTA) is a system that makes it easier for trucking companies to pay fuel taxes when they travel across different states and Canadian provinces. IFTA allows companies to register in just one state and have their fuel taxes fairly distributed to all the areas they drive through. This agreement helps ensure that fuel taxes are paid efficiently and accurately.
The International Registration Plan (IRP) is a state filing that allows your commercial motor vehicle to travel between the different states in the US and Canadian provinces. If you’re hauling freight in any of these jurisdictions and meet CDL class vehicle requirements, you’ll need to get IRP-apportioned license plates, along with a cab card.
Truck drivers and companies operating commercial vehicles that travel in multiple states or provinces, with vehicles weighing more than 26,000lbs or that have at least three axles are required to file for both IFTA and IRP.
Basic information required by the IFTA application includes:
• USDOT number
• Registered business name
• Mailing address
• Federal business number
At the end of each fiscal quarter, the license holder files a fuel tax report showing miles driven and fuel bought in each participating state or province. Supporting documents include:
• Vehicle mileage record
• Distance records
• Fuel records
• Tax-paid retail fuel purchase receipts
IFTA is calculated by figuring out how much fuel a truck uses in all the states and provinces it drives through. The fuel taxes are then divided up based on the miles driven in each place, so each state or province gets its share of the tax money.
Vehicles exempted from filing for IFTA and IRP:
• Vehicles that only drive within one state and don’t cross state lines
• Vehicles that have a GVWR of less than 26,000 lbs
• Farm plated vehicles
• Government vehicles
• Emergency vehicles
Yes, a fuel tax report is required to be filed four times a year. Quarterly reporting dates are:
• Jan. – March (Q1): April 30
• April – June (Q2): July 31
• July – Sept. (Q3): Oct. 31
• Oct. – Dec. (Q4): Jan. 31
IRP typically needs to be renewed annually by the date determined by the state or province where the vehicle is registered. This renewal date can vary, but it is usually set as the anniversary date of the vehicle’s initial IRP registration under.
Read More: What Is The International Fuel Tax Agreement (IFTA)?
Read More: Understanding The International Registration Plan (IRP)