IFTA fuel tax reporting and finding the best software
Choosing the right trucking software can be complicated, especially when it comes to finding a software to report your IFTA fuel and mileage tax amounts. It needs to be accurate and timely. Calculating IFTA Tax can be a headache for many trucking companies, each quarter, worrying that they will not file on time or risk being fined for missing something. It is important to feel confident the IFTA information you file with IFTA is backed by real data.
Below you will find a brief description of what IFTA is and further down, how TMS Digital IFTA Manager software helps you with automated, accurate and easy fuel tax reporting.
You may have asked “What is IFTA and what does IFTA mean? It stands for International Fuel Tax Association, Inc., more commonly known as IFTA, Inc., and it is an Arizona not-for-profit corporation formed to manage and administer the International Fuel Tax Agreement.
What is IFTA reporting and why do I have to do it?
Below is a brief history. Quoting from the IFTA Best Practices Page.
“Prior to the formation of the International Fuel Tax Agreement (IFTA), each state had its own licensing and fuel use tax reporting system. The lack of a coordinated system left carriers to maneuver multiple systems for their licensing needs. Each jurisdiction into which a carrier traveled required a license and fuel tax filings. Many required the carriers to display a jurisdictional decal. A carrier could be audited by any or all jurisdictions into which it traveled. In 1983, a tax collection process loosely based on the International Registration Plan was developed to collect and distribute fuel taxes. Each jurisdiction would be responsible for licensing, renewals, tax reporting and auditing its registered licensees. Benefits to jurisdictions and licensees included the management by a one jurisdiction of a single license, decal, and a consolidated audit process. Arizona, Iowa, Washington were the initial jurisdictions to sign on. Over the next three years, a working group modified the Agreement which, in 1986, was adopted by the membership at the time as IFTA. By the end of 1996, the lower 48 states and 10 Canadian provinces became members.”
You must apply
If you are based in a member jurisdiction and operate a qualified motor vehicle in 2 or more member jurisdictions, yes. If you usually operate your vehicles only in one jurisdiction, but make occasional trips outside the base jurisdiction, you may elect to purchase trip permits for that occasional travel. Permitting services can usually be contacted from any major truck stop. Contact a permitting service for rates.
How to apply
You should contact the jurisdiction where your company is based. Your base jurisdiction is the jurisdiction where you have your qualified motor vehicles registered, where you have some travel, and where the operational control and operational records are maintained or can be made available.
It is important to keep up on tax rate changes.
For more information about IFTA, go to: https://www.iftach.org/taxmatrix4/TaxChange.php
To read more about IFTA Best practices, check out the official IFTA page: https://www.iftach.org/committee/ac/AC%20BEST%20PRACTICES%20GUIDE%20-%20FINAL%204-13-18.pdf
Ok, so you know what IFTA is and how and why you have to apply for it. However, how do you go about this? How do you report it? In addition, what is the easiest, most cost efficient way to gather data to calculate it? That is where TMS Digital IFTA Manager Software comes in.
Here is why TMS Digital IFTA Manager is the best IFTA reporting software. IFTA Manager IFTA fuel tax software offers a process to automate the gathering of actual data, like your fuel card transactions and your truck’s ELD GPS Tracking data and marrying it together to create trips that record both your fuel purchases and the miles driven in each state. Our TMS Digital Technicians will setup automated processes to download your fuel card data and your truck’s computer data and save it on your secure server. The data will be downloaded, daily. Then, it is easily imported into our IFTA Manager program. The fuel is matched up with the ELD GPS data based on the truck number and the purchase date. You simply generate reports based on that data to get your fuel tax calculations. The reports use calculations that you can download directly from IFTA. Again, another easy process, built right into the IFTA Manager program. We also offer reports for troubleshooting, for example, we have an Uncommitted Transaction report, to identify fuel that could not be matched to a trip. This can occur when you have older trucks that don’t have computers, or trucks that drive outside their computer’s GPS range.
The icing on the cake? IFTA Manager is hosted on secure servers, located here in the United States. These servers are backed up and protected from malware and viruses. You have 24/7 IT support, and quick response times from your software technicians.
Contact us today for a free demo!