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IFTA tax reporting | DOT permits

Understanding IFTA: A Comprehensive Guide for New Trucking Companies

Are you a new trucking company that is in the process of learning the ins and outs of the business? Have you seen the phrase, IFTA tax reporting, in your search? Here, we will help you understand what IFTA is and how it works.

At Border Trucking Compliance, located in El Paso, TX, we offer consultations for people who need help with their IFTA tax reporting. We offer many different IFTA tax reporting services to best assist our clients. For more information, call us at (915) 838-1080 or contact us online today. 

IFTA in a Nutshell

You should be aware of IFTA regulations if you own and operate an interstate vehicle. IFTA stands for International Fuel Tax Agreement and is an agreement between 48/50 states and 10 Canadian provinces. This agreement was created so that truckers and other interstate drivers could pay their fuel taxes. If you need assistance with your IFTA tax reportining El Paso, we can help. 

If you own and operate a qualified motor vehicle (QMV) in more than two jurisdictions, you must obtain an IFTA license. However, you only qualify as a QMV if you fall under any of the following:

  • The vehicle has three or more axles.
  • Weighs at least 26,000 lbs and has two axles. 
  • When the weight of the combination is more than 26,000 lbs.

Once you receive your IFTA license, you’ll only have to do your IFTA tax reporting once a quarter. 

What is IFTA Tax Reporting?

Your motor vehicle (or fleet) will have to submit a quarterly IFTA tax return to your base state. Once you’ve completed your IFTA tax reporting, the money will be dispersed throughout the jurisdictions your vehicle operated in. Though it’s a simple process, if you’re new to the trucking business, you may need some assistance. Our team will be able to assist you every step of the way with your IFTA tax reporting. 

The due dates for the IFTA tax return are April 30th, July 31st, October 31st, and January 31st. The penalty for failing to do your IFTA tax reporting on time or correctly can result in the suspension of your IFTA license and an assessment of your vehicle (or fleet).

IFTA Tax Reporting Assistance in El Paso

At Border Trucking Compliance, located in El Paso, we offer IFTA tax reporting services to any new trucking company that needs help. Call (915) 838-1080 today to schedule a consultation.