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Everything About IFTA Audit Penalties

The mileages are the backbone of the IFTA report. Getting this wrong during the calculation is an invitation to IFTA audit and hefty penalties. Whether in the event you've got a previous good comprehension of IFTA mileages or not, this article will brush through and clear the concepts on IFTA and non-IFTA miles to get your heavy highway use tax. So let's just get started. The first question is what are Total IFTA miles? Total miles means the miles that your fleet conducted in the jurisdiction regions in the quarter. Any distance covered needs to log and it comprises the Total IFTA miles. 

 

The international fuel tax agreement miles or IFTA miles are the distance that your fleet ran in all the jurisdiction areas. It also includes distances to mechanic shops, conveyance and deadhead miles. The personal conveyance and only deadhead miles have to be included in the report. However, drivers can cite the reason behind deadhead miles in the highway use tax. Reporting the miles is very beneficial for the trucking owners. This will help in higher MPG. This greatly helps to reduce the IFTA tax equilibrium. 

 

Fuel consumed with higher MPG means low tax rates in the jurisdiction area. The non-IFTA miles are the miles covered by your vehicle in the regions of non-jurisdiction. The non-jurisdiction region includes Alaska, Hawaii, District of Columbia, Yukon Territory, Northwest Territory, Nunavut, and Mexico. The distances covered in the regions are called the non-IFTA country miles. Exemptions are exceptional in every state. Nontaxable miles aren't exposed to heavy highway use tax. 

 

The exemptions are also of different kinds. They are fuel exemptions, distance exemptions and vehicle exemptions. These exemptions vary from year to year. Some of the cases of exemptions areas are Forest Roads in California, Agricultural Roads in Utah, Trip Permits in New York, Pike Miles or Toll Roads in Massachusetts. Some jurisdictions in the form of exemptions are fuel permitted. This means if you buy a fuel permit the miles drove will not be under the tax. You need to in details about these exemptions and when to utilize it. 

 

Not only it will assist you in saving taxes but also help in submitting the IFTA report correctly. Being a trucker you should also know what is an IFTA mile? It is the IRP mileage which is equal to your IFTA mileage. It's quite important to have a proper track of accurate miles and miles covered in the time of IFTA reporting. An IFTA audit happens randomly and the miles covered are checked very closely. 

 

You will not need to get hefty fines because of the utter ignorance of the miles covered in heavy highway use tax. You can take control with an wonderful range of IFTA tax calculators that's available to facilitate your responsibility. Non-IFTA miles aren't covered in the total IFTA miles. The distance covered under the member jurisdictions is IFTA miles. The distances covered in the non-jurisdictions will be the Non-IFTA miles. The IFTA report contains only the IFTA miles.

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