IFTA licensing ‒ who needs it?
Trucking companies that function in multiple jurisdictions must hold an IFTA license. The license is issued by the company’s home jurisdiction and is valid for one year. If the company wants to keep its license, it must fill out a renewal application and pay the renewal IFTA fees.
Trucking companies that have IFTA licenses must display an IFTA decal on each vehicle used in interstate operations. The decal must be renewed every year and is valid for the calendar year.
Penalties for Violating IFTA Regulations
Trucking companies that violate IFTA regulations may be subject to penalties. A fine, suspension of your IFTA license or revocation of your license are all consequences for breaking the law.
The benefits of IFTA for truckers
Is IFTA required? In most cases, for trucking companies, yes. The benefits of IFTA for trucking companies include the following:
A Streamlined Process
With easy IFTA, trucking companies are only required to file one quarterly report and make one payment for fuel taxes. This eliminates the need to file multiple reports and make multiple payments to different jurisdictions. IFTA filing services are the best help there.
A Simplified Fleet Tax Reporting Structure
IFTA provides a simplified tax structure based on fuel consumption and miles traveled. This makes it easier for trucking companies to calculate their taxes owed.
Administrative Burden Reduction
The streamlined process of fuel tax reporting reduces the administrative burden on trucking companies. With IFTA, it is easy to file and pay fuel taxes, which saves the company time and money.
Improved Cash Flow
IFTA allows trucking companies to delay payment of fuel taxes until the end of the quarter. This improves the company’s cash flow and helps to ensure that the company has enough cash on hand to cover its expenses.
An annual license fee
An annual license fee is all that is required to participate in IFTA. The fee is used to help run IFTA operations and to fund enforcement activities.
IFTA provides several benefits for trucking companies that operate in multiple jurisdictions. The streamlined process for reporting and paying fuel taxes makes it easy to comply with the provisions of the agreement. The simplified tax structure and the annual license fee make IFTA an attractive option for trucking companies.