As the transportation industry continues to become more regulated, finding ways to streamline administration and record-keeping becomes more important for your business.
The International Fuel Tax Agreement (IFTA) was designed to simplify the reporting of fuel use for carriers operating in more than one of the lower 48 U.S. states or Canadian provinces. Now interstate carriers only have to file fuel tax reports with the state where they are licensed.
However, IFTA still requires carriers to file a quarterly report covering all of their qualified vehicles. That means maintaining, consolidating and reconciling records that accurately track Individual Vehicle Mileage Reports (IVMRs) and fuel purchases. Here’s an example of information required:
IFTA Required Receipt Information for Tax Credit:
- fuel type
- purchase date
- number of gallons
- total cost
- seller’s name & address
- vehicle registration number
- purchaser’s name
- Monthly summaries of IVMRs
Manually processing the information required for IFTA reporting is time-consuming and can be costly. Collecting and interpreting handwritten driver reports, and reviewing receipts may require dedicating employees or hiring outside contractors to process IFTA. Plus, collecting data required for accurate IVMRS can take drivers off the road to safely complete their reports.
To reduce the time and financial burdens of IFTA reporting, fleet managers are implementing easy-to-use, affordable telematics solutions that monitor and manage their mobile assets and mobile workforce. IFTA software accurately captures and reports the miles travelled in each state for filing fuel taxes. Automated data collection improves the accuracy of IVMRs to help fleet owners comply with IFTA regulations, reducing possible fines and minimizing the risk of an audit.