IFTA stands for International Fuel Tax Agreement. It is a cooperative arrangement between U.S. states and Canadian provinces, to simplify the reporting of fuel use by motor carriers that operate in more than one jurisdiction. This arrangement was introduced to create a fuel tax collection within the framework of various IFTA member countries. It makes the collection and reporting of fuel taxes simpler for drivers working in various nations jurisdiction. The fuel taxes in all ten provinces of Canada and 48 states of United States aren’t the same. These fuel taxes diversify based on the place, so it is very difficult for trucking company owners to file International Fuel Tax. In accordance with ifta fuel tax reporting software, trucking companies need to pay taxes to all states where these trucks have been moved or conveyed. The taxes vary in different states and is calculated based on miles driven by a truck in any state. In days trucking companies must rely upon the data maintained by motorists on a daily basis.
IFTA taxation was a nightmare for trucking company owners because they have to rely upon the data given by the drivers. They must keep track of all trucking receipts for their fleet so, it was a time-consuming process. In a case, if an error is made by owners or by motorists, the odds of error in your fuel tax reporting could cause a completely new set of worries. Therefore, minimize and to automate errors while reporting and calculating IFTA Fuel Tax manually, some companies came up with a customized software program. These IFTA fuel tax reporting software were developed to handle all tasks related to reporting, filing and calculating IFTA Fuel Tax. With the advancement of the software the process of IFTa reporting has become easier and the game of mouse clicks. It is the easy to use software, and it’ll allow you to do of the calculation for you personally so that you can accurately file taxes in individual states. On the other hand, it can help you save a lot of time and money that is wasted in reporting IFTA forms. There are dealers in the marketplace that will supply you with the IFTA software. Therefore, make sure that you opt for the IFTA software for your needs. The licensing, software, reporting features, and user interface were a few of the decision makers for purchasing an IFTA Fuel Tax Software.
It is a sophisticated software technology used to simplify the tasks and procedures, needed to be followed by of the licensees operating within the jurisdiction of IFTA member countries. All carriers with IFTA accounts are required to deposit quarterly fuel tax reports. The carriers within one IFTA accounts must be combined to document. Vehicles with same IFTA account can’t file taxes. This report should list all the number of gallons purchased and miles. A zero performance report must still be submitted on the vehicle in a case if the vehicle in a fleet is not used at all completely in a quarter. As carrier vehicles purchase fuel, the state taxes on the fuel are credited to the IFTA account. Thus, a vehicle driver and trucking business owner need to keep the path of fuel tax receipts carefully because in case if the taxes aren’t paid in time or if they aren’t paid accurately than penalties are being imposed on them. Rather than paying higher fees to get tax reporting now, you can use automated programs to handle your trucking business with ease.