IFTA Quarterly Returns

IFTA (International Fuel Tax Agreement) is a base-state agreement among the 48 contiguous US states + 10 Canadian provinces. Replaces individual fuel tax reporting per state.

Who needs IFTA

A motor carrier needs IFTA if:

• Operates in 2+ jurisdictions (interstate), AND
• The qualified motor vehicle is either:
  • GVWR ≥ 26,001 lb, OR
  • Has 3+ axles regardless of weight, OR
  • Used in combination when combined weight ≥ 26,001 lb

Intrastate-only carriers do NOT need IFTA.

IFTA license + decals

• Apply through your base jurisdiction (state where vehicles are registered, dispatched, and where records are maintained).
• Receive 1 IFTA license per fleet + 2 decals per vehicle (one for each side of cab).
• License renews annually; decals replaced annually.

Quarterly return cycle

Quarter	Reporting Period	Due Date
Q1	Jan 1 - Mar 31	April 30
Q2	Apr 1 - Jun 30	July 31
Q3	Jul 1 - Sep 30	October 31
Q4	Oct 1 - Dec 31	January 31

If the due date is a weekend or holiday, the deadline rolls to the next business day.

What the return contains

For each jurisdiction operated in during the quarter:

• Miles driven in that jurisdiction (total + taxable)
• Gallons of fuel purchased in that jurisdiction
• Calculated tax owed or credit (compute fuel consumed in jurisdiction × jurisdiction's tax rate, then subtract tax already paid at the pump in that jurisdiction)

Net is summed across all jurisdictions: positive = remit to base state; negative = refund/credit.

The math (per jurisdiction)

Total Miles in JX  =  raw odometer or GPS data per jurisdiction
Total Gallons      =  fleet-wide gallons consumed in the quarter
Fuel Used in JX    =  (Total Miles in JX) / (fleet MPG)
Tax Liability      =  (Fuel Used in JX) × (JX's tax rate)
Tax Paid at Pump   =  fuel receipts purchased in JX × that JX's rate
Net for JX         =  Tax Liability − Tax Paid

Sum across all jurisdictions. Pay base state OR claim refund.

Recordkeeping (4-year retention)

• Daily distance records by jurisdiction (typically from IVMR — Individual Vehicle Mileage Reports — or ELD/GPS data)
• Fuel purchase receipts with date, jurisdiction, gallons, $ amount, vehicle ID
• Trip records showing routes + jurisdictions traversed
• MPG calculation (total gallons / total miles)

Records retained for 4 years from the return due date.

Sources of distance data

• IVMR — paper or electronic; per vehicle per trip
• ELD GPS — most modern fleets pull jurisdiction data from the ELD
• Trip recorder / GPS device — third-party telematics

Common IFTA audit findings

1. Distance per jurisdiction can't be verified. No supporting records.
2. Fuel receipts don't tie to vehicle. A pile of fleet card statements without per-vehicle attribution.
3. MPG is unreasonable. If reported MPG is 12+ for an OTR fleet, auditor suspects manipulation.
4. Non-IFTA mileage included. Operating in Alaska, Hawaii, DC, Mexico, Yukon, or NWT — these are non-IFTA jurisdictions; miles must be tracked but not taxed under IFTA.
5. Returns not filed for "no operation" quarters. Even if zero miles, you must file a "no operation" return.

Where this fits in X3

X3's ifta.html page imports ELD data, computes per-jurisdiction miles + fuel, and generates a draft IFTA-100/101 return. agent-ifta-quarterly-reminder fires 30 days before due date.

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