Since truckers typically driver across state lines, often the miles driven in each State must be documented as part of the Interstate Fuel Tax Agreement (IFTA).
What is IFTA?
IFTA is an agreement among 48 US states (except Alaska and Hawaii) and Canadian provinces (except Nunavut and Yukon) to simplify the reporting of fuel used by motor carriers operating in more than one jurisdiction. An operating motor carrier with an IFTA license must file periodic tax reports. The purpose of IFTA tax is to allocate taxes according to where the actual fleet vehicle was driven to compensate the State for road’s wear and tear.
For fleet managers, calculating IFTA taxes is a tedious, but necessary part of the job. To help, FieldLogix offers an IFTA-only plan, which uses GPS tracking to provide reports of miles driven in each State. This data can quickly be compiled and uploaded into your company’s tax program. Therefore, the proper IFTA paperwork can quickly be completed, helping your company report correctly and receive the maximum tax benefit.
To determine if your company should be tracking inter-state miles and or tracking miles for IFTA, please consult a tax advisor or accountant.
FieldLogix’ green GPS tracking system can help you save money by maximizing your IFTA reporting.
Logo: www.iftach.org