If you are in the trucking industry, then knowing what is IFTA tax is going to help you a lot. Most of the truckers don’t know how it is applied to your fleet? Being a trucker, you should know what IFTA is in the details. IFTA stands for The International Fuel Tax Agreement. It is an agreement made between the U.S and the Canadian Provinces.
As per the IFTA, every member state will get fuel tax revenue for the motor carrier that travelled in that jurisdiction. It doesn’t matter you have purchased the fuel in that member state or not. Heavy Highway Use Tax is a fee assessed on heavy vehicles annually. To register a vehicle classified as a heavy highway motor vehicle on his/her name, one has to pay this federal tax. The Heavy Highway Use tax is collected on the vehicles having a gross weight of 55,000 or more. The vehicles that operate on public highways and have travelled a distance of 5,000 miles in a year. The taxes are collected once a year. It is used for the construction and maintenance of the highways.
Form 2290 is used to pay the heavy highway use tax. IFTA reporting is the task which generally people don’t love to do. But it is an integral part of the trucking business. With the right IFTA fuel tax reporting software, one can easily track the mileage and fuel per state. This software prevents the company to postpone IFTA reporting deadlines. However, like other software, IFTA reporting software has to be selected carefully. Below are the best ways you can adapt to select the software. One of the most important parts of choosing any software is its user-friendliness. With all the necessary graphs and easy to understand charts, an IFTA software should give an unforgettable user experience. Your software should be able to do the maximum job. Imagine a software just displaying number, just has no use. The fuel tax software should be capable of automatically renewing the IFTA rates under every jurisdiction and quarter. The software also must have the capability of automatically comparing the fuel rates and is available for you to download.
IFTA fuel tax software must give an ability to manually correct any data, whenever required. There may be cases when you just need to override the calculated data. In those cases, the system should not be frozen and should be flexible enough for user input and modifications. Data Is collected manually or from software needs to be added to IFTA fuel tax software, at an initial time. This helps the software correctly predicts the past and future of your IFTA reporting. Good software must have the capability of Bulk upload of data so that the user does not have to manually enter the data each and every time. IFTA reporting software is capable to track information regarding miles travelled, fuel usage, fuel purchased, credits due along with laden and unladen weights along the way.
IFTA rates vary across all jurisdiction and so does the units. The software must be capable of refreshing and updating the units in each location of jurisdiction. This helps in getting accurate IFTA reports. IFTA tax reporting software you are going to choose must be able to do the advanced mathematical calculation. Your IFTA reporting software must have the capability of organizing data so that the user does not get confused. The software also should have the feature to allow the user to generate unlimited reports at ease. You can consider IFTA fuel tax software for your business to save time, money and efficiency. Then consider the above best ways to re-evaluate the software. The software must be above all having the capability to deliver and give ease in running your everyday business.