Complying with the International Fuel Tax Agreement (IFTA) in the trucking industry is mandatory for any interstate-based carrier, and it truly can be a daunting task. Keeping track of all the necessary data, calculating taxes, and generating reports is time-consuming and error prone. That’s where EnvioHQ, the best IFTA reporting software in 2023, comes in. We help trucking companies streamline their IFTA reporting processes by providing seamless fuel transaction importing, plethora of fuel card integrations, per-state mileage calculations using industry leading tools like PC Miler or ELD integration, real-time state tax IFTA rate updates, all according to FMCSA compliance. 

IFTA Filing Process and Best Practices 

The International Fuel Tax Agreement (IFTA) is a cooperative agreement between the lower 48 states of the United States and 10 Canadian provinces. It simplifies the reporting and collection of fuel taxes used by interstate commercial carriers. IFTA filing is done quarterly, and carriers must submit their reports to their home state internal revenue service agency, which then redistributes the taxes to other jurisdictions according to the miles driven and fuel consumed.  

The IFTA filing process involves the following steps: 

  1. Maintain accurate records: It is crucial to maintain precise and complete records of the miles driven and fuel purchased in each jurisdiction. This includes the date, location, odometer reading, fuel type, and amount of fuel purchased. 
  1. Calculate miles traveled and fuel consumed: For each jurisdiction, determine the total miles traveled and the total fuel consumed. This information will be used to calculate the fuel mileage and tax due for each jurisdiction. 
  1. Calculate fuel mileage and tax due: Divide the miles traveled by the fuel consumed to determine the fuel mileage for each jurisdiction. Then, multiply the fuel mileage by the IFTA tax rate for that jurisdiction to calculate the tax due. 
  1. Complete the IFTA quarterly report: Fill out the IFTA quarterly report form provided by your base jurisdiction. This will include details such as your IFTA account number, vehicle information, and the calculated tax due for each jurisdiction. 
  1. Submit the report and pay taxes: Submit the completed IFTA quarterly report to your base jurisdiction along with any taxes due by the specified deadline. 

IFTA filings are done across the entire carrier fleet, but it is also very convenient to use a software like EnvioHQ as it enables you to access calculations per truck, simplifying the process of collecting IFTA payments from owner operators working under your trucking authority. 

To ensure accurate and efficient IFTA reporting, follow these best practices: 

  • Keep detailed records of all fuel purchases and miles traveled in each state. 
  • Regularly update and verify the accuracy of your records. 
  • Utilize IFTA reporting software, such as EnvioHQ, to automate calculations and generate reports. 
  • Stay informed of current IFTA tax rates and any changes in reporting requirements. 
  • Maintain your records for at least four years, as they may be subject to audit by your base jurisdiction. Some states may require a longer recordkeeping period.  

IFTA Reporting Made Easy with EnvioHQ 

EnvioHQ offers a comprehensive IFTA reporting solution that simplifies and automates the process for trucking companies. With features such as fuel tax calculations, automatic quarterly IFTA rate updates, easy data import options, and audit checks for accuracy, EnvioHQ is the best IFTA reporting software on the market in 2023.  

By integrating with the most popular fuel card providers on the market, ELDs, and PC*Miler, EnvioHQ enables trucking companies to efficiently manage their IFTA reporting requirements and avoid penalties for late or inaccurate filings. 

Below are some of the reasons why EnvioHQ is the best trucking software for your IFTA filings: 

  1. Accuracy: By automating the data collection and calculation processes, EnvioHQ’s IFTA software helps eliminate errors that may occur due to manual data entry and calculations. 
  1. Fuel transaction importing: With EnvioHQ, you can easily import fuel transactions from various sources, including fuel cards and receipts. This eliminates the need for manual data entry and ensures that all your fuel transactions are accounted for in your IFTA reports. 
  1. Fuel card integrations: We also support integrations with major fuel card providers, making it easy to import your fuel transactions and track your fuel expenses for IFTA reporting. 
  1. Per-state mileage calculations: EnvioHQ calculates your per-state mileage using PC Miler or ELD integration. This ensures that your IFTA reports accurately reflect the miles traveled in each jurisdiction. 
  1. Real-time state IFTA coefficient updates: Our system keeps up with the latest IFTA tax rates and updates them in real-time. This ensures that your IFTA reports are always up to date. 
  1. FMCSA compliance tracking: In addition to IFTA reporting, EnvioHQ filings are compliant with Federal Motor Carrier Safety Administration (FMCSA) regulations allowing you to have a piece of mind 
  1. Pricing: Unlike many competitors, EnvioHQ does not charge any additional subscription or one-time payments for generating IFTA reports our using this module, providing you with significant savings, considering that agencies providing IFTA calculation services can charge between $75-150 per truck each quarter.  

What is IFTA? 

IFTA stands for the International Fuel Tax Agreement. It is a cooperative agreement between 48 U.S. states and 10 Canadian provinces to simplify the reporting and collection of fuel taxes by interstate commercial carriers. Under IFTA, carriers operating in multiple jurisdictions are required to report their fuel usage and miles traveled in each jurisdiction. IFTA ensures that each member jurisdiction receives its fair share of fuel tax revenue while reducing the administrative burden on carriers. 

Who participates in IFTA? 

The participating U.S. states include all states except for Alaska and Hawaii. The participating Canadian provinces are Alberta, British Columbia, Manitoba, New Brunswick, Newfoundland and Labrador, Nova Scotia, Ontario, Prince Edward Island, Quebec, and Saskatchewan. Carriers operating in multiple jurisdictions must register for IFTA with their base jurisdiction (where their business is based) and comply with the IFTA reporting requirements. 

How often is IFTA filed? 

IFTA is filed quarterly. The reporting periods and corresponding due dates for each quarter are as follows: 

  • 1st Quarter (January – March): Due April 30th  
  • 2nd Quarter (April – June): Due July 31st  
  • 3rd Quarter (July – September): Due October 31st  
  • 4th Quarter (October – December): Due January 31st 

If a due date falls on a weekend or a public holiday, the deadline is extended to the next business day. 

What is IFTA software? 

IFTA software is a specialized tool or application designed to help trucking companies and commercial vehicle operators manage and automate their IFTA reporting process. The software simplifies the data entry, calculation, and reporting of fuel tax information for each jurisdiction involved in the International Fuel Tax Agreement (IFTA). It assists with tracking fuel purchases, calculating taxes, determining taxable and non-taxable miles, and generating accurate and compliant IFTA reports for quarterly filings. IFTA software reduces the time, effort, and potential errors associated with manual calculations and record-keeping, ensuring a more efficient and streamlined process for IFTA compliance. 

Is there an app to calculate IFTA miles? 

Yes, there are apps available, like EnvioHQ, that can help you calculate IFTA miles using ELD integration or other mapping tools like PC Miler. Many IFTA software solutions offer mobile apps that can be downloaded on smartphones or tablets, allowing truck drivers and fleet managers to track miles and fuel purchases on the go. These apps often integrate with GPS or ELD (Electronic Logging Device) systems to automatically capture and record mileage data per jurisdiction, making it easier to calculate IFTA miles and generate accurate IFTA reports 

How does the ELD mandate impact IFTA reporting? 

The ELD (Electronic Logging Device) mandate impacts IFTA reporting by simplifying and improving the accuracy of mileage and fuel data collection. The ELD mandate, which was implemented by the Federal Motor Carrier Safety Administration (FMCSA) in the United States, requires commercial motor carriers to use electronic logging devices to record hours of service (HOS) and other data. 

The ELDs automatically track vehicle movement, including miles driven and location history, which can be used for IFTA reporting. This has several benefits for IFTA reporting: 

  • Increased accuracy: ELDs automatically record mileage and location data, reducing the chances of errors from manual data entry or estimation. 
  • Simplified record-keeping: ELDs store data electronically, making it easier for carriers to maintain records for IFTA reporting and audits. 
  • Time savings: With ELDs automatically capturing mileage data, carriers and drivers can save time that would have been spent manually recording and calculating miles driven in each jurisdiction. 
  • Improved compliance: The accurate and consistent data recorded by ELDs helps carriers ensure compliance with IFTA reporting requirements and avoid potential penalties or fines. 

How do I manually calculate IFTA? 

To manually calculate IFTA, you need to track the miles traveled and fuel purchased in each state. Then, for each jurisdiction, divide the miles traveled by the fuel purchased to determine the fuel mileage. Multiply the fuel mileage by the IFTA tax rate to calculate the tax due. Finally, add up the taxes due for all jurisdictions to determine your total IFTA tax liability. Our recommendation is to resort to using systems that allow you to track all of these inputs automatically and do the calculations for you in order to avoid any errors, such as EnvioHQ.  

How do you calculate IFTA in Excel? 

Calculating IFTA in Excel is possible, but it can be time-consuming, error-prone, and less efficient compared to using dedicated IFTA software like EnvioHQ. However, if you still want to use Excel for IFTA calculations, here’s a basic process you can follow: 

  • Create a spreadsheet with columns for Date, Trip, State, Miles Traveled, Fuel Purchased (in gallons), and Fuel Tax Paid. 
  • For each trip, enter the data for the states you traveled through, including the miles traveled and fuel purchased in each state. 
  • Obtain the current IFTA tax rates for each jurisdiction from the IFTA website or your base state tax agency. 
  • In the spreadsheet, create a table with columns for State, Total Miles, Total Gallons, and IFTA Tax Rate. 
  • Use Excel formulas to sum up the total miles and total gallons for each state. 
  • Apply the IFTA tax rate for each state to calculate the taxes owed or credits due. 
  • Finally, calculate the net IFTA tax by subtracting the fuel tax paid from the taxes owed for each state. 

While Excel can be used to perform these calculations, it requires manual data entry and updating tax rates, which can lead to errors and inaccuracies. Additionally, Excel does not offer automatic integrations with fuel cards or ELD systems, further complicating the process. 

In contrast, EnvioHQ provides a more efficient and accurate solution for IFTA reporting. It offers features like fuel transaction importing, fuel card integrations, real-time state IFTA coefficient updates, and automatic per-state mileage calculations using PC Miler or ELD integration. This not only saves time but also helps to ensure compliance with FMCSA regulations. 

The Benefits of Investing in EnvioHQ for IFTA Reporting 

EnvioHQ offers the best value for the price paid by providing comprehensive IFTA reporting features, streamlining the entire process for trucking companies. By not charging per module or feature used, EnvioHQ allows end-users of any fleet size to have access to all premium features. This makes it an ideal solution for companies looking to improve their IFTA reporting processes and stay compliant with ever-changing regulations, without any additional expense. 

By investing in EnvioHQ, trucking companies can eliminate the inconvenience of using Google Sheets or Excel for IFTA calculations. EnvioHQ’s powerful features and integrations make it a one-stop solution for accurate and efficient IFTA reporting, saving time, effort, and reducing the risk of errors. As a result, EnvioHQ has established itself as the best IFTA reporting software in 2023, providing unmatched value and capabilities for trucking companies of all sizes. 

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