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Do I Need to File IFTA if I Haven’t Driven?

Understanding the International Fuel Tax Agreement (IFTA) is crucial if you operate a fleet of commercial trucks. This cooperation agreement, between the United States’ 48 states and 10 Canadian provinces, makes it easier for motor carriers that operate in multiple jurisdictions to record their fuel usage.

If you don’t drive all year, one question that frequently comes up is whether you need to submit IFTA. The quick response is that it depends on your circumstances.

Quick Recap on IFTA

Let’s first establish what IFTA is and what it does. According to IFTA, motor carriers must submit quarterly fuel tax reports detailing the amount of fuel used, the distance traveled, and the taxes payable to each jurisdiction in which they conduct business. In accordance with the amount of gasoline consumed in each jurisdiction, the main goal of IFTA is to ensure the equitable distribution of fuel taxes paid by interstate motor carriers.

Filing IFTA

Regardless of whether you drive all year or not, if you hold an IFTA license, you must submit a quarterly fuel tax report. There are a few instances where this rule does not apply.

You can file a “zero” report to show that no gasoline was consumed in that jurisdiction if you did not operate your car or fleet during a certain quarter and did not make any fuel purchases during that time. This is referred to as a “non-filing” IFTA return.

In other situations, you are exempt from registering for IFTA and filing any fuel tax reports if you did not conduct business in any IFTA jurisdictions throughout the whole calendar year. An “IFTA exemption” is what this is.

It is significant to highlight that submitting incomplete or inaccurate IFTA forms or underreporting fuel use could lead to high fines and interest charges. Because of this, it’s essential to comprehend your IFTA filing obligations and follow them in order to prevent any potential problems.

Bottom Line:

In conclusion, your particular situation will determine whether you must file IFTA if you don’t drive throughout the entire year. Quarterly fuel tax reports must be filed if you are an IFTA licensee that is registered. However, you can file a “non-filing” IFTA return if you did not operate during a certain quarter, and you are exempt from IFTA registration and filing requirements if you did not operate in any IFTA jurisdictions at all for the whole calendar year. As usual, it’s essential to seek advice from a trained tax expert or the IFTA office in your state to be sure you complying with all relevant laws.

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Written by Melisa Bush

Before coming to Superior Trucking Payroll Service, in 2011, Melisa worked for a trucking company with 50 trucks. She was the one who processed the driver’s miles and expenses.

Because of this experience, she understands the challenges our clients go through each week while preparing their payroll data for us. Customer service is #1 for Melisa. Her goal is to treat our clients like people with true and real needs, not just another number.

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