Most Common IFTA Reporting Mistakes Truckers Usually Commit

If you are in the trucking business, then you might be familiar with the IFTA term which means International Fuel Tax Agreement. This agreement is all about paying taxes for fuel when the trucking companies have to cover journeys passing different jurisdictions. It’s basically an arrangement between U.S states and Canadian provinces and is legalized to allow truckers to frequently cross state lines on their routes without any restriction. 


IFTA services simplify accounting and payment of fuel taxes and also relieves trucking companies from paperwork. However, IFTA reporting is a complex task to do and if someone committed a mistake in doing so, then it can impose bigger penalties on the possessor and would lead to unnecessary stress. Here in this blog, we will share some of the common mistakes that truckers usually commit while reporting IFTA and how they can avoid it. So, let's put a look 


  1. Inaccurate Mileage Reporting 

Inaccurate mileage recording is one of the most frequent IFTA reporting mistakes. The number of miles your trucks go in each jurisdiction must be meticulously recorded. Calculating fuel taxes incorrectly can result from mileage errors and can lead to wrong IFTA reporting. Invest in reliable GPS tracking systems or other equipment that automatically record and report your mileage to prevent making this error.





  1. IFTA Reports Filed Late or Not at All

The IFTA deadline always seems to elude you. Finding past fuel data and mileage calculations is difficult. However, you must submit your IFTA report by the deadline to avoid any mistake or error. You might also have to pay a $50 fine or 10% of the net tax liability, whichever is greater, if you  fail to submit your IFTA report on time. So, always try to meet your IFTA reporting deadline when it is needed. 


  1. Not recording every mile traveled

You must record all of your miles, including unloading and personal ones, according to IFTA.  These miles must be counted if you drive to acquire groceries or do personal errands.  Any distance discrepancies between daily trip logs can be a warning sign and call for an audit.  


  1. Combining personal and professional expenses 

Using the fuel card for personal as well as business expenses is another big mistake that can lead to IFTA reporting disaster. Always keep separate your gasoline purchases for personal and business use in order to keep accurate records. It becomes difficult to compute your IFTA taxes accurately when they are mixed together, which could lead to an overpayment or underpayment.


  1. Incomplete or missing records

The most frequent IFTA reporting errors involve missing or insufficient records. Keep meticulous logs on your fuel expenditures, mileage, and travel details. Missing documentation may result in errors found during audits and fines. To simplify record-keeping, embrace digital options like apps and software.


  1. Making use of a non-compliant software 

Make sure your trucking software has current tax tables and be sure to ask questions while purchasing it.  Additionally, confirm that your ELD is FMCSA ( Federal Motor Carrier Safety Administration) compliant.  Software or hardware flaws won't be recognised as a justification or a way to avoid an audit.


Concluding Lines 

In conclusion, truckers can save time, money, and frustration by avoiding these common IFTA reporting errors which are mentioned above. Comply with IFTA rules, submit reports accurately and on time that would reduce the possibility of mistakes. Apart from this, think about employing IFTA software, GPS tracking devices, and other technological solutions to ease the IFTA compliance process. And for the top-notch IFTA services assistance, come to Pioneer trucking solutions who would guide you the best for IFTA Compliance and reporting.

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