IFTA Quarterly Filing: A Practical Owner-Operator Guide

If you're an owner-operator running interstate, IFTA is part of your life. The International Fuel Tax Agreement sounds intimidating, but it's really just a system that makes sure each state gets its fair share of fuel tax from trucks that cross state lines.

This guide breaks down everything you need to know about IFTA filing, in plain English.

What is IFTA?

IFTA is an agreement between the 48 contiguous US states and 10 Canadian provinces. Instead of filing fuel taxes separately with every jurisdiction you drive through, you file one quarterly report with your base state. Your base state then distributes the taxes to the other jurisdictions.

Think of it as a clearinghouse. You pay fuel taxes where you buy fuel, but you owe taxes based on where you drive. IFTA reconciles the difference.

Who Needs to File?

You need an IFTA license if your vehicle:

• Has two axles and a gross vehicle weight or registered gross vehicle weight exceeding 26,000 pounds
• Has three or more axles regardless of weight
• Is used in combination when the combined weight exceeds 26,000 pounds

And you travel interstate (across state or provincial lines).

If you only operate within one state, you don't need IFTA. But the moment you cross a state line with a qualifying vehicle, you're in IFTA territory.

The Quarterly Filing Calendar

IFTA operates on calendar quarters:

• Q1 (Jan-Mar): Due April 30
• Q2 (Apr-Jun): Due July 31
• Q3 (Jul-Sep): Due October 31
• Q4 (Oct-Dec): Due January 31

Mark these dates. Late filings mean penalties and interest.

What You Need to Track

For each quarter, you need to report:

1. Total miles traveled - broken down by jurisdiction
2. Total fuel purchased - broken down by jurisdiction
3. Fuel type - diesel, gasoline, etc.

The formula is straightforward: Calculate your fleet's average miles per gallon. Multiply by miles in each jurisdiction to get taxable gallons. Compare to gallons purchased in that jurisdiction. If you bought more than you owe, you get a credit. If you owe more than you bought, you pay the difference.

Records You Must Keep

IFTA audits can go back four years. Keep:

• Trip records showing origin, destination, route, and miles by jurisdiction
• Fuel receipts showing date, location, gallons, fuel type, and price
• Monthly and quarterly summaries

Original receipts are best. Digital copies are accepted if they're legible and complete.

Calculating Your IFTA Tax

Here's the basic process:

1. Calculate total miles for the quarter
2. Calculate total gallons purchased
3. Determine average MPG (total miles ÷ total gallons)
4. For each jurisdiction:
   • Calculate taxable gallons (jurisdiction miles ÷ MPG)
   • Subtract gallons purchased in that jurisdiction
   • Multiply net gallons by the jurisdiction's tax rate
5. Sum all jurisdictions for your total tax due (or refund)

Each jurisdiction has its own tax rate, and they change. Your base state will provide current rates, or you can find them on the IFTA Inc. website.

Common IFTA Mistakes

Incomplete fuel receipts. A receipt needs to show the gallons and the location. Truck stop receipts usually have this; convenience stores might not. Always check before you leave the pump.

Estimating miles. Use actual odometer readings, not estimates. If you're using GPS or an ELD, even better. Auditors look for consistency between your trip records and your fuel purchases.

Forgetting to file. Even if you didn't operate during a quarter, you still need to file a zero-activity return. No miles? File anyway.

Mixing personal and business fuel. If you use the truck for non-IFTA purposes (like driving within one state only), that fuel shouldn't be included. Keep separate records.

IFTA Audits

Audits happen. They're usually triggered by inconsistencies, random selection, or a history of issues. During an audit, you'll need to provide:

• Distance records (trip logs)
• Fuel receipts
• Quarterly tax returns
• Summary reports

Good record-keeping is your best defense. If your records are organized and consistent, audits are just paperwork. If they're not, you could face assessments, penalties, and interest.

How Fifth Wheel Helps

Fifth Wheel automates IFTA tracking. Every trip you log includes jurisdiction tracking. Every fuel receipt you scan is categorized and stored. At the end of the quarter, you generate a report that has everything you need to file.

No spreadsheets. No digging through shoeboxes of receipts. Just accurate records, ready when you need them.

"I used to spend a whole weekend on IFTA every quarter. Now it takes me an hour, max."

Summary

IFTA isn't complicated once you understand it. The key is consistent, accurate record-keeping throughout the quarter, not a last-minute scramble before the deadline.

Track your miles by jurisdiction. Keep your fuel receipts. File on time. That's it.

If you want to make it even easier, try Fifth Wheel. We built it for exactly this.