{"id":52,"date":"2022-11-18T01:17:03","date_gmt":"2022-11-18T01:17:03","guid":{"rendered":"https:\/\/cartransport4u.com\/blog\/?p=52"},"modified":"2023-07-11T16:37:21","modified_gmt":"2023-07-11T16:37:21","slug":"what-is-ifta-international-fuel-tax-agreement-east-coast-usa","status":"publish","type":"post","link":"https:\/\/cartransport4u.com\/blog\/what-is-ifta-international-fuel-tax-agreement-east-coast-usa\/","title":{"rendered":"What Is IFTA? International Fuel Tax Agreement East Coast USA"},"content":{"rendered":"

What Is IFTA? (International Fuel Tax Agreement)<\/strong><\/em><\/a><\/h1>\n

The International Fuel Tax Agreement \u2014 also known as IFTA \u2014 is a fuel tax collection and sharing agreement for the redistribution of fuel taxes paid by interstate commercial carriers. There are 58 member jurisdictions of IFTA, including 48 American states and 10 Canadian provinces. IFTA allows US states and Canadian provinces, known as jurisdictions, to get their fair share of fuel use taxes. Drivers report mileage to their base state only, which in turn takes care of distributing the taxes among the jurisdictions on that driver\u2019s route.<\/p>\n

\"What<\/a>
What Is IFTA? International Fuel Tax Agreement<\/strong><\/a><\/em><\/figcaption><\/figure>\n

IFTA Reporting<\/strong><\/em><\/a><\/p>\n

IFTA was created to replace the old fuel tax system, in which trucks were required to have a separate decal for every state they operated in. The current IFTA reporting system simplifies the hassle of reporting fuel tax for trucking companies (including owner-operators) who operate across IFTA jurisdictions by reducing paperwork and minimizing the compliance requirements. Keep in mind that IFTA is not an additional tax. IFTA was put into place to redistribute the tax to the states where the fuel is actually being used, not where it is purchased. This means no matter where you buy the fuel, you\u2019re paying the fuel tax in whatever states you\u2019re driving in.<\/p>\n

How Does IFTA Work?<\/strong><\/em><\/a><\/p>\n

Every owner of a qualified motor vehicle must submit an IFTA application or have their bookkeeper or accountant do so on their behalf. After you submit your application, you will receive an IFTA license as well as an IFTA decal for each qualified vehicle you operate. Whenever fuel is purchased, the amount is logged into the truck owner\u2019s IFTA account.<\/p>\n

What happens If I Fail to File or Pay a Quarterly Return?<\/strong><\/a><\/p>\n

Failing to file a quarterly return within 30 days of the due date will result in your license being suspended and a Jeopardy assessment being applied. An IRS Jeopardy assessment is a significant escalation of a tax problem that is made when the IRS believes it\u2019s at risk of losing money. If you file a quarterly return but fail to make a payment on the return \u2013 including late fees, interest, and penalties \u2013 within 90 days of the due date, your license will be repealed, and you will be given a Jeopardy assessment.<\/p>\n

\"4U<\/a>
4U – car transport service across the east coast USA<\/a><\/strong><\/em><\/figcaption><\/figure>\n