Canada us tax agreement

The International Fuel Tax Agreement was established for making the collection and reporting of fuel taxes simpler for drivers operating within the continental United States and Canada. Drivers are assigned your house jurisdiction and after that submit their relevant paperwork via an office in that jurisdiction. This saves the operator from the need to manage different logs and records for many states and provinces by which he or she operated throughout the reporting period.

Who Has To File?

Any vehicle that weighs in excess of 26,000 pounds or has 3 or higher axles irrespective of weight is recognized as a “qualified motor vehicle” (QMV) within the IFTA. Anyone who operates a QMV is answerable to filing an IFTA fuel tax return. In most cases, this return has to be filed quarterly. However, if your vehicle is operated infrequently plus the operator includes a clean record of previous filings then they may affect be placed with an annual filing schedule as an alternative to quarterly.

When Are Filings Due?

IFTA filings are due on the last day on the month following reporting period. For instance when the driver must file reports using a quarterly basis, then the individual would should file prior to last day of April for many fuel consumed during January through March. For those who are filing by using an annual basis, IFTA fuel tax reports are due ahead of January 31st. Adjustments to these dates are made if your last day falls using a major holiday or Sunday.

What Are the Penalties for Filing Late?

Failure to launch a report or to launch a report with no required taxable amount will incur a penalty of $50 or perhaps amount add up to 10% with the amount owed, whichever is greater. Late fees and unpaid tax balances are governed by 1% interest PER MONTH before the balance is paid off entirely. Repeated failure to submit an IFTA tax return or pay penalties and costs can result in a revocation from the IFTA license.

Why Use a Service Provider to Handle IFTA Filings?

For owners and operators, the IFTA is more section of red tape that has got to be handled. Even the most responsible driver can lose or fail to file for a return by the due date and find their self facing stiff penalties and fines. A qualified IFTA vendor can eliminate these worries and let the driver and fleet operator to concentrate on safety and customer satisfaction.

Looking above the IFTA regulations book, a fleet operator might imagine that handling the IFTA returns most likely are not that time consuming. However, it is not only about handing over some paperwork that has been casually compiled on the course of per year. The IFTA requires detailed trip reports outlining miles traveled and fuel purchases in each jurisdiction. The fleet operator accounts for the accuracy of IFTA filings. If a driver turns in falsified or inaccurate reports will probably be the fleet operator that bears the brunt on the penalties.

Service providers can safeguard from these penalties in addition to theft and fraud that could be committed by drivers. Service providers contain the time as well as the skill to investigate logs and purchases and spot inconsistencies. Hiring a vendor is not just a convenience – it is really an investment inside safety and financial well being of any fleet.

Beyond the IFTA

Hiring a transportation consultant like Peter Suess Transportation Consultant Inc to help you manage a fleet provides benefits beyond just handling the IFTA requirements. In addition to the IFTA, the service agency will also keep archives within your logs and file required taxes and licensing documents. There are a lot more fuel and trucking taxes and laws from the United States and Canada than only the IFTA. A vendor will handle the task for New York, New Mexico, Oregon, and Kentucky mileage taxes together with keeping track within your plates and tags.

Even a lone operator features a bundle of legal and tax information he has to monitor every month. For a mid-sized fleet, the times of day taken out of weekly just to handle these filings can easily put a large strain on fleet operations. By utilizing the services of the transportation consultant, fleet managers can be sure that their company is resistant to penalties and charges that might arise from failing to report accurate fuel usage, purchases, or fees which come from filing these returns at night expected date.

Leave a Reply

Your email address will not be published. Required fields are marked *