The International Fuel Tax Agreement, or IFTA, is an agreement among the US states and Canadian provinces that simplifies fuel-tax reporting for trucks that operate in more than one jurisdiction. Instead of filing a return with every state you drive through, you file one return with your home (base) jurisdiction.
Which vehicles it covers
A qualified motor vehicle is generally one used to carry people or property that has two axles and a gross or registered weight over 26,000 pounds, or three or more axles regardless of weight, or that is used in a combination over 26,000 pounds.
License and decals
You apply through your base jurisdiction, which issues an IFTA license and decals for each qualified vehicle. The decals go on the vehicle.
Quarterly returns
IFTA returns are due quarterly, on the last day of the month after the quarter ends: April 30, July 31, October 31 and January 31. The return works out how much fuel you burned in each jurisdiction, based on miles driven there, compared with how much you bought there. Where you bought less than you used you owe tax, and where you bought more you get a credit.
The records it depends on
- Miles driven in each jurisdiction, by truck, and total miles.
- Fuel purchases: date, seller, gallons, fuel type and price, with receipts.
- Records generally must be kept for four years.
How it differs from Form 2290
Form 2290 is a federal excise tax on heavy vehicles, paid to the IRS. IFTA is about state fuel taxes, reported to your base jurisdiction. A heavy truck typically needs to deal with both, and with apportioned registration under IRP as well.