International Fuel Tax Agreement (IFTA) - Frequently Asked Questions

 

A. Total miles traveled in all jurisdictions: 3,000 to 3,500

B. Total gallons (both IFTA and non-IFTA jurisdictions): 428.57 or 429 or 500 gallons

D. Divide the amount on line 1A (3,000 to 3,500) by the amount on line 1B (429 or 500 gallons = 5.67 or 7) (round to two decimal places).

E. Average miles per gallon = 7

 

Each IFTA licensee must file a quarterly tax report, even if no miles were driven during the calendar quarter.

 

• You are required to report all IFTA jurisdictions where you have traveled, even if the jurisdiction(s) are not printed on the return. Failure to file the return may result in an assessment of $100 per jurisdiction, plus penalty and interest.

• IFTA reports are due on the last day of the month immediately following the end of each tax period. Reports must be postmarked on or before the due date to be considered timely. If the last day of the month falls on a Saturday, Sunday or Legal Holiday, the next business day shall be considered the final

filing date.

• Reports not filed by the due date are considered delinquent. The delinquent penalty is $50.00 or 10% of the tax liability, whichever is greater. http://www.colorado.gov/cs/Satellite?blobcol=urldata&blobheader=application%2Fpdf&blobkey=id&blobtable=MungoBlobs&blobwhere=1251858157421&ssbinary=true

 

Free Fuel Tax Calculator

http://www.iftaboss.com/how-to-calculate-ifta-fuel-tax

 

Who qualifies for an IFTA license?

 

You qualify for an IFTA license if you operate your qualified motor vehicle in California and any other U.S. state or Canadian province that is a member of the International Fuel Tax Agreement. To qualify, your vehicle must meet the following weight requirements:

 

A vehicle used or designed to transport people or property is a qualified motor vehicle if it:

 

Has three or more axles; or

 

Has two axles and a gross vehicle or registered gross vehicle weight of more than 26,000 pounds or 11,797 kilograms; or

 

Is used in a combination that has a combined or registered gross vehicle weight of more than 26,000 pounds or 11,797 kilograms.

 

A recreational vehicle such as a motor home or a pickup with a camper is not considered a qualified motor vehicle when an individual uses it exclusively for personal pleasure. Vehicles used in connection with a business operation are not considered recreational.

 

If you operate a diesel powered qualified motor vehicle whose interstate travel is restricted to Mexico and California you do not qualify for an IFTA license. However, you would qualify for the Interstate User Diesel Fuel Tax (DI) License.

 

If you operate a qualified motor vehicle whose travel is restricted to California only, you are not required to hold an IFTA or DI license.

 

Why should I register for IFTA?

 

IFTA offers several advantages to interstate motor carriers who operate in two or more member states or provinces. Under IFTA, you will:

 

Choose one IFTA-member state or province as a "base jurisdiction",

 

Obtain a single fuel tax license for all of your qualified motor vehicles, authorizing them to travel in all IFTA jurisdictions; and

 

File only one tax return each quarter with your base jurisdiction, reporting your fuel usage and mileage for all IFTA member states and provinces.

 

Your fuel tax records will generally be audited only by your base jurisdiction.

 

Is there an alternative to IFTA registration?

 

If you qualify for IFTA but do not choose to register, you must obtain fuel trip permits to travel into or through each member jurisdiction. You will be required to purchase a California Fuel Trip Permit every time you reenter California after traveling outside the state.

 

Carriers traveling in non-IFTA jurisdictions must continue to comply with the fuel tax reporting requirements of those jurisdictions.

 

What is a "Qualified Motor Vehicle" under IFTA?

 

A vehicle used or designed to transport people or property is a qualified motor vehicle if it:

 

Has three or more axles; or

 

Has two axles and a gross vehicle or registered gross vehicle weight of more than 26,000 pounds or 11,797 kilograms; or

 

Is used in a combination that has a combined or registered gross vehicle weight of more than 26,000 pounds or 11,797 kilograms.

 

A recreational vehicle such as a motor home or a pickup with a camper is not considered a qualified motor vehicle when an individual uses it exclusively for personal pleasure.

 

Vehicles used in connection with a business operation are not considered recreational.

Where can I travel using IFTA Credentials?

 

Most Canadian provinces and U.S. states are IFTA members.

 

The jurisdictions listed below are not IFTA members and IFTA credentials are not valid for travel there:

 

United States: Alaska, Hawaii and the District of Columbia

Canada: Northwest Territories, Nunuvit and Yukon Territory

Mexico: All states and the Federal District

 

If you plan to travel in these jurisdictions please contact them for information regarding their fuel tax reporting requirements.

 

Which taxes does IFTA cover?

 

IFTA covers fuel taxes only. It does not cover road taxes, weight mileage taxes, or any other jurisdiction specific taxes. You must continue to pay these taxes directly to the jurisdictions in which you travel.

 

Which fuels does IFTA cover?

 

Under IFTA, you must generally report information on all fuels used to power your qualified motor vehicles. However, reporting requirements for fuel used in each jurisdiction are based on that specific jurisdiction's laws and may vary.

 

What are the fuel tax rates for IFTA jurisdictions?

 

You may view, print, or download the fuel tax rates for all IFTA jurisdictions including California at http://www.iftach.org.

 

If you are looking for the rates and codes to complete your quarterly fuel tax return, please download forms IFTA-105 and IFTA-105.1, IFTA Final Fuel Use Tax Rate and Rate Code Tables for the correct reporting period.

 

Should I register for IFTA in California?

 

You should register with California as your base jurisdiction if all of the following apply:

 

Your qualified motor vehicles are based in California for vehicle registration with the California Department of Motor Vehicles (DMV);

 

You perform operations from an established physical place of business in California (a post office box, mail drop address, or agent address boxes not qualify);

 

Your fleet's qualified motor vehicles travel on California highways; and

 

You maintain the operational control and operational records for your qualified motor vehicles in California or you can make those records available in the state.

 

How do I apply for a California IFTA license?

 

You may register for an account using online registration. Online registration is the convenient way to register and is available 24 hours a day.

 

What fees must I pay under IFTA?

 

The annual fee for a California IFTA license is $10.00. This license covers all of your qualified motor vehicles. In addition, there is a $2.00 per-set charge for annual IFTA decals. You will need one set for each qualified motor vehicle you operate in IFTA jurisdictions.

 

What credentials will I receive?

 

We will send you one California IFTA license for your business. You are required to make copies of the license so that one copy is carried in each qualified motor vehicle.

We will also send you two decals for each qualified motor vehicle in your fleet. One decal must be placed on the exterior portion of the cab's passenger side. The second decal must be placed in the same position on the driver's side. Decals are received annually at the time of renewal for all qualified motor vehicles based in California.

 

Your credentials are valid for the calendar year. You must renew your license and order new decals each year. You may renew your IFTA credentials and/or request additional decals through our online registration.

 

What is the cost of a temporary permit and for how long is it valid?

 

After you have received your initial IFTA credentials, you may request an IFTA temporary permit if you wish to place a qualified motor vehicle into service prior to obtaining permanent decals. The temporary permit is valid for 30 days. You must place the temporary permit and a copy of your IFTA license in the qualified motor vehicle for which the temporary permit was ordered. The temporary permit is valid only for that particular vehicle. We will not issue you a temporary permit unless your account is in good standing. Contact Us to request a temporary permit. There is no charge for the permit.

 

What if I need to travel before I receive my credentials?

 

If you need to travel out-of-state before you receive your IFTA credentials, you must purchase fuel trip permits to travel in IFTA jurisdictions and for your reentry into California. Your California Fuel Trip Permit must be purchased and validated before you reenter the state.

 

Where can I purchase California Fuel Trip Permits?

 

California Fuel Trip Permits are available for purchase online using online registration. Online registration is the convenient way to apply anytime, day or night – 7 days a week (the system is unavailable from Sunday at 7:00 pm to Monday at 5:00 am, Pacific time for routine maintenance). Most applicants will be able to obtain their permit immediately after they submit their application.

 

If you wish to purchase California Fuel Trip Permits in person, you may visit our Motor Carrier Office or any BOE field office. Our offices are open Monday through Friday between the hours of 8:00 a.m. and 5:00 p.m., excluding state holidays.

 

California Fuel Trip Permits are also available from most permit services, some DMV offices, and some truck stops. We have compiled a listing of known locations that sell California Fuel Trip Permits. Every attempt is made to keep this information current but we would recommend that you call ahead to verify that they have an available supply of fuel trip permits.

 

Are there penalties for traveling without valid IFTA credentials or a fuel trip permit?

Yes. If you travel in an IFTA jurisdiction without valid IFTA credentials or a fuel trip permit, you may be subject to a penalty, fine or citation, depending on the jurisdiction's laws. If you enter California without a valid California Fuel Trip Permit or IFTA credentials you are subject to a penalty. Penalty amounts range from $100 to $500 or more (if you owe fuel tax, the penalty may be higher than $500). You will also be required to purchase a fuel trip permit and are subject to possible seizure of your vehicle. If that occurs, your vehicle will not be released until you pay all money due the State, including any costs associated with the seizure of the vehicle.

 

When are IFTA returns due?

 

Under IFTA, you are required to file quarterly fuel tax returns. The reporting quarters and due dates are:

 

Reporting Quarter

Due Date

January - March

April 30

April - June

July 31

July - September

October 31

October - December

January 31

 

All IFTA returns filed online must be filed and any amounts due must be paid by 12:00 a.m. (midnight) on the due date to be considered timely. Confirmation is received immediately upon filing your return. Please keep the confirmation of filing for your records.

 

Carriers filing paper returns and payments made with a voucher must be postmarked on or before the due date of the return.

 

If the due date falls on a weekend or state holiday, the due date is extended to the next business day.

 

All licensees must file an IFTA tax return every quarter. A return must be filed each quarter even if:

 

No taxable miles were traveled

All miles traveled were in California

 

Do I file a quarterly fuel tax return if I didn't run during the quarter?

 

Yes, you must submit a "zero" return even if no taxable fuel was used.

 

What is the penalty and interest rate for filing a late quarterly fuel tax return?

 

A penalty of $50.00 or ten percent of the net tax liability, whichever is greater, will be assessed on late-filed returns, failure to file, or for underpayment of tax due. If the net tax liability is zero or a credit, the late filing penalty will still be $50.00.

 

Interest is assessed on all delinquent taxes due each jurisdiction. Interest will be calculated from the date the tax was due for each month or fraction of a month until paid. The IFTA online filing system will calculate the interest due on the return, assuming you pay at the time you file your return. If you are filing a prior period return, please refer to the interest rate chart or Contact Us for assistance.

 

All IFTA returns must be filed online and any amounts due must be paid by 12:00 a.m. (midnight) on the due date to be considered timely. Confirmation is received immediately upon filing your return. Please keep the confirmation of filing for your records.

 

Carriers filing Paper returns and payments made with a voucher must be postmarked on or before the due date of the return.

 

If the due date falls on a weekend or state holiday, the due date is extended to the next business day.

 

How do I obtain a return?

 

We no longer routinely mail IFTA paper returns. IFTA Returns for the current reporting period should be filed on-line. This is a free service offered by the California State Board of Equalization (BOE) that allows a California-based IFTA carrier to quickly and accurately file their quarterly IFTA return using a computer that has an Internet connection. The tax forms are filed electronically so there is no need to worry about the tax forms being lost or delayed in the mail.

 

We will send you an email reminder on the 10th day of the month the return is due. If you are not receiving an email reminder, please login into your User ID account and add your business email address.

 

Failure to receive a paper return or an email reminder does not relieve you from the obligation of filing in a timely manner or submitting the return.

 

How do I amend or correct a previously filed return?

 

If you discover an error on a previously filed return, you should file an amended return and pay any additional tax or fee due, including interest.  Currently, we do not have an electronic method for you to amend your return.

 

To amend or correct a return for diesel fuel, please do the following:

 

Download a return  for the period that you need to amend or correct.  The rates and codes change quarterly, so please download the return for the specific period that you are filing. 

 

Enter your name, address, and account numbers on the return.

 

Select “AMENDED RETURN”.

 

Complete your return as it should have been reported on the original return.  If you need assistance in calculating the interest due, see IFTA Interest Rates.

 

Make a copy of the amended return for your records.

Mail your return and any additional payment owed to:

Board of Equalization
PO Box 22099
Albany, NY 12201-2099

 

Are there any exemptions for off-road use or other unusual uses?

 

International Fuel Tax Association, Inc. posts lists of exemptions accepted in each jurisdiction that you might travel. You may find the list of exemptions at: http://www.iftach.org. Every attempt is made to keep this information current but we would recommend that you contact each jurisdiction before taking an exemption.

 

What records will I need?

 

You must maintain records that will adequately document all of the information you provide on your quarterly fuel tax returns.

 

Generally, you must maintain records to document all miles you travel - including the date of your trip, route of travel, total trip miles, and miles traveled in each jurisdiction. You must also keep all receipts for fuel you buy and place into your vehicles. If you maintain a bulk fuel storage facility, you must maintain additional records. For more detailed information please read Publication 50, Guide to the IFTA.

 

My IFTA License expires December 31, but I've heard there is an extension until the last day of February. Is this true?

 

Yes. You have until March 1 of each year to carry a current IFTA license and display the current year's decals on your vehicles, provided you have applied on time to renew your IFTA license and your account is in good standing.

 

Why has my IFTA license been revoked?

 

If you do not comply with provisions of the IFTA Agreement, we may revoke your license. We may take this action if you do not:

 

Comply with all provisions of the IFTA Agreement and California fuel tax laws and regulations,

 

File a quarterly fuel tax return,

 

Pay all taxes due all member jurisdictions,

 

Pay the amount due on an audit billing or fail to petition for reconsideration within the established time period, or

 

Operate interstate.

 

We will notify all IFTA jurisdictions if we revoke your license. If you operate a qualified motor vehicle in an IFTA jurisdiction after your license has been revoked, you may be subject to a penalty, fine or citation, depending on the jurisdiction's laws. http://www.iftach.org/taxmatrix3/choose_tableq2.php

 

We will notify all IFTA jurisdictions if we revoke your license. If you operate a qualified motor vehicle in an IFTA jurisdiction after your license has been revoked, you may be subject to a penalty, fine or citation, depending on the jurisdiction's laws.

http://www.iftach.org/taxmatrix3/choose_tableq2.php

 

How to Calculate the INTERNATIONAL FUEL TAX AGREEMENT QUARTERLY

TAX RETURN

 

OUR MISSION

 

PROVIDING HIGHWAY SAFETY AND SECURITY THROUGH EXCELLENCE IN

SERVICE, EDUCATION, AND ENFORCEMENT

HSMV 85800 (7/11)

 

INTRODUCTION

 

In an effort to assist you, the licensee, with calculating an error‐free International Fuel Tax Agreement (IFTA) quarterly tax return, this booklet contains instructions on completing the tax return and some of the most common errors made during calculation of the tax return. If you need further instructions or information pertaining to accurately calculating the IFTA tax return, please contact the Bureau of Commercial Vehicle and Driver Services at:

 

Department of Highway Safety and Motor Vehicles

Division of Motorist Services

 

BUREAU OF COMMERCIAL VEHICLE AND DRIVER SERVICES

 

Neil Kirkman Building, MS‐62

2900 Apalachee Parkway

Tallahassee, Florida 32399‐0626

Telephone (850) 617‐3711

Fax (850) 617‐5185

www.flhsmv.gov

Go to www.iftach.org to obtain the IFTA tax rates.

 

OUR MISSION

 

PROVIDING HIGHWAY SAFETY AND SECURITY THROUGH EXCELLENCE IN

SERVICE, EDUCATION, AND ENFORCEMENT

 

How to Calculate the International Fuel Tax Agreement Quarterly Tax Return

 

MATHEMATICAL MISCALCULATIONS

 

The number one reason for an error on a tax return is simple mathematical miscalculation. Therefore, it is recommended that, in all instances, you double‐check your calculations before filing a tax return. A minor error can cause an entire tax return to be calculated incorrectly and thereby create a costly mistake for the licensee. Tax returns with detected errors cannot be processed and will be returned to you for correction.

The IFTA quarterly tax return form HSMV 85921 along with the Florida Schedule 1 – IFTA Fuel Tax Computations form HSMV 85922, and the current tax rates are sent to all IFTA licensees at least thirty (30) days prior to the tax return due date.

 

DUE DATES

 

The DUE DATE for the quarterly tax return is the last day of the month immediately following the last day of the quarter for which the return is being filed. If the due date falls on a weekend or State holiday, the due date is the next business day.

 

TAX RETURN REPORTING

QUARTERS

DUE DATES

 

January thru March April 30

April thru June July 31

July thru September October 31

October thru December January 31

 

FOR YOUR INFORMATION

 

Failure to receive the quarterly tax return form does not release the licensee from reporting obligations.

 

A quarterly tax return MUST be filed even if the licensee does not operate or purchase fuel in any IFTA jurisdiction in any particular quarter.

 

The Bureau of Commercial Vehicle and Driver Services (CVDS) uses the postmark date stamped by the post office to determine timeliness of your return.

 

If you are filing your tax return near the due date, it is suggested you take it to the post office and ask for the postmark cancellation stamp (indicating the date mailed) to be placed on the envelope containing the return.

 

NOTE: Sometimes the post office will place the next day’s postmark on mail placed in a drop box.

 

IFTA TAX RETURN (HSMV 85921)

DETAILED INSTRUCTIONS

 

The following instructions start at the beginning of the International Fuel Tax Agreement Tax Return (form HSMV 85921) and continue section by section with detailed information on how to complete each area of the tax return, including the Florida Schedule 1 – IFTA Fuel Tax Computations (form HSMV85922).

 

TAX PERIOD

 

When the tax return is mailed to you, the tax period will be pre‐printed with the correct quarterly tax period. If you are filing taxes for a different period other than the one indicated on the pre‐printed tax return, be sure to indicate the specific tax period in the “Tax Period” section for which you are filing.

 

DELINQUENT RETURN

 

When the pre‐printed tax return is mailed to you, the tax period section will also indicate the delinquent date for the tax period.

 

ACCOUNT NAME AND ADDRESS

 

This section will be complete, when a pre‐printed tax return is mailed to you. If the form you are using is not a pre‐printed form, please write or type your correct account name and address in the space provided.

 

FEDERAL EMPLOYER IDENTIFICATION NUMBER (FEI #)

 

Your FEI # will be on the tax return, if a pre‐printed tax return is mailed to you. If the form you are using is not a pre‐printed form, please write or type the correct FEI # on the line provided.

 

The FEI # is you IFTA account number.

 

CUSTOMER NUMBER

 

The Customer # will be on the tax return, if a pre‐printed tax return is mailed to you. If the form you are using is not a pre‐printed form, please write or type the correct Customer # on the line provided.

 

RETURN TYPE

 

This is the section located in the upper right hand corner of the tax return. You are provided with three options in this section:

þ Original Return

þ Amended Return

þ Final Return

 

One of these three boxes should be check marked based on the following information.

ORIGINAL RETURN

 

Mark this box if it is the first (original) return filed for a particular tax quarter.

 

AMENDED RETURN

 

Mark this box if the return changes (amends) a tax return previously filed for a particular tax quarter.

 

FINAL RETURN

 

Mark this box if you are closing your business and this is the last (final) tax return you will file. (see NOTE on next page.)

 

NOTE: If you are filing a final return, on the line below where you marked “final return” provide the date your operations ceased. Before your account is closed, all current IFTA decals and your license must be submitted to the BCVDS, or a notarized statement must be submitted indicating they have been destroyed.

 

AMOUNT DUE

 

The section “Amount Due with This Tax Return” can only be completed after the entire tax return has been computed. If you owe fuel tax, please make your check payable to the Division of Motorist Services, include on your check, the working “IFTA”, the specific tax quarter (1st, 2nd, 3rd, or 4th) and year (2008, 2009, etc.). Also, include your FEI # and Customer #. IMPORTANT INFORMATION – If you are on a payment plan for fuel taxes, which were assessed as part of an account audit, you should pay those taxes with a separate check, indicating your audit number, FEI # and Customer # on the check.

 

NO OPERATIONS?

 

A quarterly tax return MUST be filed even if the licensee does not operate or purchase any taxable fuel in an IFTA member jurisdiction during the specific quarter. Mark the box in this section and make certain you forward your tax return to the Bureau of Commercial Vehicle and Driver Services.

 

MILEAGE AND FUEL SUMMARY

 

(For Qualified IFTA Vehicles)

LINE 1.A. – FUEL TYPE

 

If your fleet includes vehicles which operate on fuel other than diesel, i.e., gasoline, propane, etc., you will need to separate your mileage and fuel records for each fuel type. Since most licensees use diesel only, we will continue these instructions with that assumption.

 

LINE 2.A. – TOTAL MILES TRAVELED IN ALL JURISDICTIONS (IFTA AND NONIFTA)

 

This is the section of the return where you calculate the miles per gallon (mpg) which your vehicles attain. On Line 2.A. enter ALL of the miles your vehicles ran during the quarter. This figure is calculated by subtracting the odometer reading on each vehicle at the beginning of the quarter from the odometer reading at the end of the quarter. This should be the number recorded on your Individual Vehicle Mileage Report (IVMR) or your Quarter or Monthly Mileage and Fuel Purchase Recap sheets.

 

EXAMPLE

 

Odometer Ending Mileage 0150000 miles

Odometer Beginning Mileage 0127000 miles

TOTAL 23000

Enter on Line 2.A. – 23000 miles

 

LINE 2.B. – TOTAL GALLONS OF FUEL PLACED IN QUALIFIED VEHICLES FOR ALL JURISDICTIONS (IFTA AND NONIFTA).

 

Enter the number of gallons of fuel placed into the fuel tanks of all your qualified IFTA vehicles on this line. (see Example next page)

 

EXAMPLE

 

You total the fuel receipts for the quarter and the calculation equals 4340 gallons

Enter on Line 2.B., 4340 gallons

Note: round the total gallons to the nearest whole number.

 

LINE 2.C. – AVERAGE MILES PER GALLON (LINE 2.A. / 2.B.)

 

Divide line 2.B. into line 2.A. to calculate the mpg for your vehicle/fleet. Then enter the figure on line

 

2. C. Calculate this figure using three decimal places and then round the figure back to two decimal places.

 

EXAMPLE

 

(Calculate 3 decimal places and round to 2 decimal places)

 

SCHEDULE 1 – IFTA FUEL TAX COMPUTATIONS (HSMV 85922)

 

After you have completed the Mileage and Fuel Summary portion of the tax return and the mpg has been calculated for your vehicle/fleet, you are now ready to begin computations on the Schedule 1 – IFTA Fuel Tax Computations (HSMV 85922).

 

COLUMN (A) JURISDICTION

 

On the Schedule 1 in Column A, JURISDICTION, list each jurisdiction (state) in which your vehicles traveled during the quarter. If any of the jurisdictions charge a surcharge (see the IFTA tax rate sheet you received with your tax return or go to www.iftach.org to obtain tax rates), list that jurisdiction twice, i.e., on two separate lines.

 

COLUMN (B) TOTAL MILES

 

Using figures from your Individual Vehicle Mileage Record (IVMR), or the quarterly or monthly mileage and fuel purchase recaps, enter Column (B) – TOTAL MILES I EACH JURISDICTION, the total miles you traveled for each jurisdiction listed.

FYI – Samples of suggested record keeping forms are available on the department’s website at: www.flhsmv.gov

 

Click on the drop down box in the driving section and select the Commercial Carriers link. In the FAQ Section, under Both IRP & IFTA Q&A’s, click on the Samples of Acceptable Worksheets link.

 

The sum of each jurisdiction’s total miles should equal the Total Miles Traveled in ALL jurisdictions, from Line 2.A. of the Mileage and Fuel Summary, on the IFTA Tax Return.

COLUMN © TOTAL TAXABLE MILES

 

In most cases, Column (C) TOTAL TAXABLE MILES will be the same as Column (B) TOTAL MILES IN EACH JURISDICTION.

 

5.30

5.299 miles per gallon (mpg)

4340 23000.000 miles traveled

 

FYI

 

Some jurisdictions allow certain mileage exemptions; and miles traveled under a Trip Permit are exempt.

 

Explain in writing any differences in your Total Taxable Miles (Column C) and Total Miles in Each Jurisdiction (Column B).

 

Mileage exemptions allowed in a particular jurisdiction should be reflected in Column (C) TOTAL TAXABLE MILES. In these cases, the Total Taxable Miles and the Total Miles columns in each jurisdiction would not match.

Please see the IFTA website at www.iftach.org for information on exemptions.

 

COLUMN (D) TAXABLE GALLONS IS A CALCULATED FIELD:

 

Divide the taxable miles in Column (C) by the mpg from Line 2.C. of the Mileage and Fuel Summary, on the IFTA Tax Return, and place that result in Column (D). Round this figure to the nearest whole number. Do not leave any decimal places. This is the amount of fuel, which you used in the jurisdiction.

 

COLUMN (E) TAX PAID GALLONS PURCHASED

 

Shows the amount of fuel, which you already paid taxes on. This figure will come from fuel receipts, or bulk fuel withdrawal slips, which are dated during the tax period for which you are preparing the return.

 

Enter the total amount of tax paid fuel on the correct line for the jurisdiction in which the fuel was purchased, or withdrawn from bulk tanks. Round this figure to the nearest whole number. The total of all the figures in Column (E) will equal Line 2.B. of the Mileage and Fuel Summary, on the IFTA Tax Return.

 

COLUMN (F) NET TAXABLE GALLONS

 

Calculates the difference between the fuel used, Column (D), and the fuel purchased, Column (E).

 

Subtract Column (e) from column (D) to calculate Column (F) NET TAXABLE GALLONS

 

If you purchased more fuel in a jurisdiction than you used, Column (f) will be a negative number.

 

The figures for Column (G) TAX RATE/SURCHARGE RATE are found on the Tax Rate Chart supplied with you quarterly Tax Return, or at the IFTA website: www.iftach.org.

 

Find the line for the Jurisdiction and the column for the correct fuel type and enter the amount in Column (G) TAX RATE/SURCHARGE RATE.

 

Multiplying Column (F) times Column (G) results in the amount of tax owed; or if column (F) is a negative number, the result will be a tax credit for that jurisdiction. This amount should be entered in Column (H).

 

COLUMNS (G, H, I, & J) SURCHARGE RATES

 

For jurisdictions that charge a surcharge, use two lines on SCHEDULE 1. Enter the jurisdiction’s name and write “Surcharge” under it in column (A). Skip Column (B) and (C), and copy the same figure in Column (D) as you calculated for the jurisdictions tax due line.

 

Skip Columns (E) and (F) enter the surcharge rate in column (G) and multiply by column (D) to arrive at Column (H). (see note on next page)

 

NOTE: Surcharges are calculated on your “taxable gallons” NOT on “net taxable gallons”. Surcharges will always reflect an amount due, NEVER a credit.

 

If you file your tax return by the DUE DATE, you will be able to skip column (I), INTEREST DUE. However, if interest is due, calculate it by multiplying the tax amount by 1% for each month (or fraction of a month) that the return is late.

 

EXAMPLE: $356.00 x .01 = $3.56

 

Add the tax due Column (H) and the interest due Column (I) and enter the figure in column (J) for each line of Schedule 1. Total all the figures in Column (H). Transfer the total from Column (H) to Line 3, Tax or Credit Due, of the Mileage and Fuel Summary (HSMV 85921).

 

If there is a credit on your account from previous returns, the amount will be pre‐printed on Line 4. Less Credit from Previous Returns. Subtract Line 4 from Line 3 to determine Line 5, Net Tax Due.

 

If money is owed from previous quarters, the amount will be pre‐printed on Line 6, Tax Due from Previous Return(s). Add the amount of Line 6 to Line 5 to calculate Line 7, Total Tax Due.

 

If the tax return is late, enter the penalty amount of $50.00 or 10% (.10) of the tax due, whichever is greater, on Line 8, penalty.

 

If interest is due, total all figures in Column 1 and enter the amount of interest o Line 9, Interest.

 

Add Lines 7, 8, and 9, and enter the amount due on Line 10, Total Due With This Return.

If the total is a credit, enter “0” on Line 10 and show the credit on Line 11. Amount of Credit.

 

Be sure to sign the tax return, and include your title, printed name, telephone number, date of the return, and the e‐mail address.

 

If you name is not on the IFTA license, or you are not a corporate officer of the company which holds the IFTA license, a Power of Attorney form HSMV 96440 MUST be on file with the Bureau of Commercial Vehicle and Driver Services office in order for you to sign the tax return.

 

If you need additional information, or have questions that have not been answered in this booklet, please do not hesitate to contact the Bureau of Commercial Vehicle and Driver Services at: (850) 617‐3711 / www.flhsmv.gov

 

See the following pages for MOST COMMON ERRORS MADE BY LICENSEES WHEN FILING IFTA TAX RETURNS

 

MOST COMMON ERRORS MADE BY LICENSEES WHEN FILING IFTA TAX RETURNS

 

The following pages provide information on five of the most common mistakes made by licensees when completing their tax returns.

 

#1 MOST COMMON ERROR CALCULATING AND USING MILES PER GALLON (MPG)

 

Simply stated “MPG” is the quarterly sum of all miles traveled (both IFTA and non‐IFTA) by all the IFTA registered vehicles in a fleet divided by the total gallons of fuel (both IFTA and non‐IFTA) placed in the propulsion tanks of those vehicles.

In most jurisdictions, all miles traveled are considered IFTA miles. Regardless, all miles must be reported for this calculation.

 

Once fuel is placed in the vehicle’s propulsion tank, it is considered part of the total gallons for that reporting quarter and should be entered on Line 2.B. of the Mileage and Fuel Summary, on the IFTA Tax Return. This is true, even if the vehicle is not moved after the fuel is placed in the tank, e.g., refueling from a bulk storage tank after returning from a trip.

 

Fuel still in a bulk storage tank should not be reported. Bulk storage fuel is reported only after it is transferred to the qualified IFTA vehicle’s propulsion tank.

 

How to Round the MPG Figure

 

To accurately round a figure to 2 decimal places you must carry the figure out 3 decimal places and then round it to the 2nd decimal place accordingly.

 

Always round the MPG to the nearest second decimal place.

 

Two Examples: 4.564 = 4.56 or 4.567 = 4.57

 

Place the MPG rounded to the second decimal place on Line 2.C., of the Mileage and Fuel Summary, on the IFTA Tax Return, e.g., 4.56 instead of 5.

 

ONE FINAL POINT ON CALCULATING MPG – Totals must be placed on Line 2.A. and Line 2.B., of the Mileage and Fuel Summary, on the IFTA Tax Return. This is the data used to determine your MPG, and it must be shown.

 

#2 MOST COMMON ERROR DIFFERENCE BETWEEN COLUMN (B) (TOTAL MILES AND COLUMN (C) (TAXABLE MILES)

 

In the majority of cases, Column (B) and Column (C) will be the same. There will be some cases where the licensee may have non‐taxable miles, e.g., miles operated on trip permits. In these cases, it will speed document processing if you note on the tax return the reason why certain miles were nontaxable.

 

The IFTA website (www.IFTACH.org) provides information on exemptions.

 

#3 MOST COMMON ERROR COLUMN (D) (TAXABLE GALLONS) CANNOT EQUAL COLUMN (E) (TAX PAID GALLONS) FOR EACH JURISDICTION

 

With the exception of licensees that do not travel out of the State of Florida during the tax quarter, it is virtually impossible to purchase the exact amount of fuel as expended in each jurisdiction on a multijurisdiction tax return.

 

A tax return filed as such is an indication that the licensee may be guessing at their mileage and fuel purchases and this may result in an audit of the licensees’ records.

 

#4 MOST COMMON ERROR COLUMN (E) (TAX PAID GALLONS) CANNOT EXCEED LINE 2.B. (TOTAL GALLONS) – (when all fuel purchases are made at the pump) Line 2.B. of the Mileage and Fuel Summary, on the IFTA tax return is the total number of gallons placed in the fuel propulsion tanks of qualified vehicles during the reporting tax quarter. Therefore, all tax paid gallons, Column (E), must be included in the Line 2.B. figure. Unless tax‐free fuel purchases were made, Column (E) will equal Line 2.B. It can Never exceed it. (SEE #5 MOST COMMON ERROR) #5 MOST COMMON ERROR BULK FUEL PURCHASES AND TAX REPORTING Line 2.B. of the Mileage and Fuel Summary, on the IFTA tax return is the total number of gallons placed in the fuel propulsion tanks of qualified IFTA vehicles during the reporting tax quarter.

 

Therefore, even if a carrier has bulk tanks and has paid taxes on all of this fuel, they would show only those gallons that were pumped into qualified motor vehicle on Line 2.B., and in Column (E), Tax Paid Gallons.

 

WITHDRAWAL SLIPS are required to be maintained in order to support the number of gallons pumped out of the bulk tank and placed into qualified

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