WHY TRUCKING COMPANY MUST FILE IFTA FUEL TAX RETURN
The International Fuel Tax Agreement is a fuel tax agreement between the lower 48 states of the United States and the Canadian provinces. It was created to simplify the reporting of fuel use by motor carriers operating in multiple jurisdictions. IFTA streamlines this process by allowing trucking companies to file IFTA Fuel Tax Return that covers all of their operations in participating jurisdictions. Without IFTA, trucking companies would have to file separate fuel tax returns in each jurisdiction in which they operate, which can be time-consuming and burdensome. Here are why trucking companies must file IFTA Fuel Tax Returns.
REDUCE FILING STRESS
IFTA Fuel Tax Returns allow motor carriers to report the fuel consumption and mileage for their vehicles in their base jurisdiction. This helps to ensure that the proper amount of fuel tax is paid to the appropriate jurisdiction.
ENSURES ACCURATE FILING
Filing an IFTA fuel tax return is important because it allows you to report the fuel tax you have paid to each jurisdiction in which you have operated. This information is used to determine the amount of fuel tax you owe or are due to receive as a credit. If you fail to file an IFTA fuel tax return, you may be subject to penalties and fines.
PREVENT FUEL TAX EVASION
IFTA also helps prevent fuel tax evasion by requiring trucking companies to report fuel consumption and mileage. These ensure all carriers are paying their fair share of fuel taxes and help level the playing field for law-abiding carriers.
THE BOTTOM LINE
Filing an IFTA Fuel Tax Return ensures motor carriers are paying the correct amount of fuel tax, which is important for maintaining compliance with tax laws. Global Multi Services help trucking companies file their IFTA Fuel Tax Return. Get in touch with us today to avoid fines and penalties.
