IFTA stands for International Fuel Tax Agreement. It is a cooperative agreement between U.S. states and Canadian provinces, to simplify the reporting of fuel use by motor carriers that operate in more than one jurisdiction. This arrangement was introduced to develop a systematic fuel tax collection within the framework of various IFTA member countries. Additionally, it makes the collection and reporting of fuel taxes simpler for drivers operating in various nations jurisdiction. The fuel taxes in all ten provinces of Canada and 48 states of United States aren’t the same. These fuel taxes diversify based on the place, so it is difficult for trucking company owners to document International Fuel Tax. In accordance with ifta fuel tax reporting software, trucking companies have to pay quarterly taxes to all states where these trucks are moved or conveyed.
The taxes vary in various states and is calculated based on miles driven by a truck in any specific state. In days that are traditional trucking companies has to rely upon the data maintained by motorists on a daily basis. Consequently, IFTA taxation was a nightmare for trucking company owners because they have to depend upon the data given by the drivers. They must keep track of all trucking receipts for their fleet so, it was a time-consuming process. In a case, if any mistake is made by owners or by motorists, the odds of error in your fuel tax reporting could cause a completely new set of concerns. Thus, to automate and minimize mistakes while reporting and calculating IFTA Fuel Tax manually, some companies created a customized software application. These IFTA fuel tax reporting software were developed to deal with all tasks associated with reporting, filing and calculating IFTA Fuel Tax. With the progress of this software, the process of IFTa reporting has become simpler and match of few mouse clicks. It is easy to use software, and it will allow you to do all of the calculation for you so that you can correctly file taxes in individual states.
On the other hand, it will allow you to save in reporting IFTA forms a lot of time and money that is wasted. There are dealers in the marketplace that will offer you the IFTA software. Make sure that you opt for the IFTA software for your needs. The licensing, applications, reporting features, and user interface were some of the decision makers for buying an IFTA Fuel Tax Software. It’s a software technology used to simplify the tasks and procedures, needed to be followed by the licensees operating within the jurisdiction of IFTA member states. All carriers with IFTA accounts are required to deposit quarterly fuel tax reports. All the carriers within one IFTA account must be combined to document. Vehicles with same IFTA account cannot file taxes. This report should list the number of miles and gallons.
A zero performance report must nevertheless be submitted on the vehicle in a case if the vehicle in a fleet is not used at all in a quarter. As carrier vehicles purchase fuel, the state taxes on the fuel are credited to the IFTA account. Therefore, a vehicle driver and trucking business owner need to keep the path of fuel tax receipts very carefully because in case if the taxes are not paid on time or if they are not paid accurately than appropriate penalties are being imposed on them. Rather than paying fees to get tax reporting now, you can use automated programs to handle your trucking business without difficulty.