IFTA replaces separate fuel permits in every state with one license and one quarterly return. The system is simple once the records are in order. Most problems come from missing miles, missing receipts or a missed deadline.
The four deadlines
| Quarter | Covers | Due |
|---|---|---|
| Q1 | January 1 to March 31 | April 30 |
| Q2 | April 1 to June 30 | July 31 |
| Q3 | July 1 to September 30 | October 31 |
| Q4 | October 1 to December 31 | January 31 |
When the due date falls on a weekend or holiday, the return is due the next business day. A return is due every quarter the license is active, including quarters with no operations.
What the return needs
- Total miles and taxable miles by jurisdiction. From your ELD, GPS reports or trip sheets. Off-highway and certain toll miles may be treated differently in some states.
- Fuel purchased by jurisdiction. Receipts must show the date, seller, number of gallons, fuel type and the vehicle or unit it went into. Bulk fuel has its own rules.
- Vehicle list. Which qualified vehicles operated during the quarter.
From these, the return calculates your fleet’s average miles per gallon, the gallons consumed in each state, and the tax owed or credited in each, netted to one payment or refund.
Records to keep
Keep trip records and fuel receipts for at least four years. Audits are typically a sample of quarters, and the auditor will reconstruct your mileage from odometer readings and routes if your records do not support what you filed. Gaps are usually resolved against the carrier.
Mistakes that cost money
- Not filing a zero return for an inactive quarter.
- Reporting fuel without receipts, which is disallowed in an audit.
- Letting the miles per gallon drift to an unrealistic figure because miles or gallons were left out.
- Assuming Kentucky, New York, New Mexico and Oregon are covered by IFTA. They have separate weight-distance taxes.
We prepare quarterly returns from the records you send us; see IFTA license and quarterly fuel tax returns.
This article is general information, not legal, tax or compliance advice for your specific situation. Requirements and fees change; confirm current rules with the relevant agency or ask us about your case.