Detailed IFTA Application: How To Fill One

Source: www.images.wisegeek.com

Then, the IFTA stickers will come in a mail after the IFTA application has been processed.

In the end, while you wait for the IFTA stickers, you can have a temporary IFTA license faxed to you that you can carry in your truck until they come.

IFTA jurisdictions

What you need to know that the IFTA credentials are valid for travel in the 10 provinces in Canada and also in other 48 states in the USA.

Only six jurisdictions are not IFTA members where the credentials are not travel-valid:

  • Canada – Northwest Territories, Nunavut, Yukon Territory
  • The United States – Alaska, Hawaii, District of Columbia
Source: www.images.wisegeek.com

International Fuel Tax Reporting

The application for IFTA is based on the due date of owed or credited money. If you purchase fuel in a low tax state but run the fuel in a high tax state it is possible you owe taxes at the end of a quarter.

Continually, purchasing in a high tax state then run the diesel in a low tax state you can get a credit at an end of a quarter.

Source: www.dat.com

At first, the application may seem confusing but at the end, it is shown as more efficient as well as effective, mostly when tracking fuel taxes.

Further, the owner-operators which are carrier leased operate under the carrier’s IFTA agreement. In that case, the carrier takes responsibility for the IFTA filling returns as well as paying liabilities.

In the end, the owner-operators are seeing the debited taxes from their settlement.

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Filing frequency

To continue with, you file an International Fuel Tax Agreement (IFTA) tax returns quarterly. All of the IFTA qualified vehicles are obliged to report their activity, including intrastate and interstate travel.

Source: www.carglobalinc.com

Penalties and Reinstatement

Also, there is a late assessment fee which is $50 or 10% and it is charged in a way of an underpaid tax return or untimely.

If you owe money, then you are charged on a monthly basis for a jurisdiction. On the other hand, if the taxes are not paid, then you need to cancel the vehicle’s registration.

Contract Agreements

Continually, here are also included the contract agreements or the lease agreements.

These agreements show details on the vehicle’s owner of the carrier and fuel tax reporting responsibilities.

Source: www.s.marketwatch.com

As a matter of fact, they define the specific period of the agreement. It is important to keep a copy of the contract or agreement with the records indicating paying and reporting fuel taxes.

Who Must Obtain an IFTA Application?

When it comes to the IFTA application, there are qualifications in order to operate a qualified motor vehicle.

The IFTA license is an obligation unless the driver obtains a trip permit. However, in order to obtain an IFTA license, a driver must register the vehicle under his name.

This is mostly obligatory in cases where the person does not lease the vehicle to another person.

Source: www.blog.expressifta.com

On the other hand, if the owner is leasing the vehicle, the person leasing the vehicle must obtain an IFTA license:

  • Rent-a-car companies usually use a written agreement when leasing vehicles for less than a month
  • Carriers employing owner operators for longer than a month unless the agreement states otherwise
  • Owner-operators employed by a carrier for less than a month

What is a Qualified Motor Vehicle?

A qualified motor vehicle normally involves a vehicle that is used or designed to transport persons or property. Usually, it includes some of the following:

Source: www.coast2coasttruckingpermits.com
  • 2 axles and a (registered) gross vehicle with a weight of more than 11,797 kg or 26,000 pounds
  • 3 or more axles on the power unit, regardless of weight
  • a total or registered gross vehicle that has a weight of more than 11,797 kg or 26,000 pounds when used with a trailer

The recreational vehicles normally do not involve weight or axle configuration when not used in connection with any business. In that case, they are not considered qualified motor vehicles.

In addition, they man include pickup trucks with attached campers or buses when used for personal pleasure.

Source: www.carmag.co.za

The light trucks and vans with a registered gross weight including trailer weight below 11,797 kg or 26,000 pounds do not need to register under IFTA.

This also applies when the vehicles are used for commercial transportation of goods or even passengers, inside and outside Ontario.

In particular, the vehicles include delivery vans as well as pickup trucks. They are normally used by local merchants, short-haul, intercity carriers and their services.

How to Fill a Detailed IFTA Application?

Before you start with the IFTA application, you need to know the meaning of it which I will divide into several parts. In this way, you will learn how to fill it regularly and according to the demands.

Part 1

Starting from part 1, this is the very beginning of the IFTA application.

License Effective Date: The date shows when you will start using your IFTA license.

Business Federal ID Number: Here you need to enter the federal identification number.

Source: www.images.thestar.com

Further, the carrier has a responsibility to notify the department when:

  • Changing the FEIN numbers
  • Ownership of a new license

USDOT Number: This number is usually needed when entering the company’s USDOT number.

Part 2

Legal Name: Here you enter the name of the business entity that the carrier owns. You need to enter the full business name on the certificate, the agreement, and the tax records.

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Trade Name: Enter the company’s trade name only if it is different from the official company’s name.

Source: www.i.ytimg.com

Part 3

Mailing Address: Here you enter your complete email address. You need to do this because all the forms and licenses will be sent to this address.

Physical Address: You fill this box only if your physical address differs than the mailing one.

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