Understanding IFTA Requirements for Trucking Companies

September 19, 2025

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What Is IFTA and Why It Matters for Your Fleet

The International Fuel Tax Agreement (IFTA) is a reporting system used by carriers that operate across multiple states or provinces. It allows qualified motor carriers to file a single fuel tax return through their base jurisdiction, rather than submitting separate reports in every area they travel.

IFTA requirements focus on accurate tracking of miles driven and fuel purchased in each state or province. This information is used to calculate how much tax is owed or refunded, based on where the fuel was actually consumed. Filing errors or missing records can lead to penalties, tax bills, or audits that disrupt operations.


For small to mid-sized trucking companies, IFTA compliance can be a challenge without the right systems in place. It affects more than just
tax reporting. Delays, miscalculations, and poor recordkeeping can cause fines and impact fleet performance.


Staying organized and submitting accurate quarterly reports protects your company from unnecessary risk. It also keeps your trucks on the road and your business focused on growth.

The International Fuel Tax Agreement (IFTA).

Who Needs to Register for IFTA?

Any motor carrier that operates qualified vehicles in more than one IFTA member jurisdiction must register under the agreement. A qualified vehicle is typically one used for transporting people or property that meets any of the following conditions:


  • It has two axles and a gross vehicle weight or registered gross vehicle weight exceeding 26,000 pounds
  • It has three or more axles, regardless of weight
  • It is used in combination, and the combined weight exceeds 26,000 pounds


This includes most commercial trucks used in interstate operations. If your fleet crosses state lines and falls into these categories, IFTA registration is not optional. It becomes part of your
compliance responsibility.


Once registered, carriers receive an IFTA license and a set of decals for each qualified vehicle. These must be renewed annually and kept current to avoid fines or operational delays. Operating without valid IFTA credentials can lead to citations, impoundments, or forced out-of-service orders, especially during roadside inspections or audits.


Registration is handled through your base jurisdiction, which is typically the state where your company is based and where vehicles are registered. That jurisdiction is responsible for processing your quarterly returns, collecting taxes, and distributing them to other jurisdictions based on your fuel usage.


Some businesses try to avoid registering for IFTA by limiting operations to one state or by using lease agreements to shift responsibility to another party. While this can be legal under certain conditions, it often creates gaps in compliance or complicates reporting. It’s important to understand that IFTA registration is not only about tax reporting; it also supports transparency, audit readiness, and operational consistency across your fleet.


Failing to register properly or delaying registration once interstate operations begin can create liability that’s difficult to clean up later. Early and accurate registration sets the foundation for long-term compliance.

How to File IFTA Quarterly Reports Correctly

IFTA reporting depends on accurate data and timely submissions. Carriers must log miles driven and fuel purchased in each jurisdiction, then use that information to calculate fuel tax obligations. The process may seem routine, but mistakes or delays can quickly lead to penalties and audit exposure.


To stay compliant, focus on these five steps each quarter:

  • Track Mileage by Jurisdiction

    Every trip must include detailed records of where your vehicles traveled. This includes all types of miles. loaded, unloaded, deadhead, or personal conveyance. Using GPS, trip logs, or ELD data can make this process more reliable and easier to review.

  • Organize Fuel Purchase Records

    Only qualified fuel purchases can be reported. Receipts must show the date, seller name, location, fuel type, gallons or liters purchased, and the name of the buyer. Handwritten or incomplete receipts may be rejected in an audit.

  • Calculate Fleet MPG

    Divide your total miles driven by the total fuel purchased to find the average miles per gallon. This figure is used to estimate how much fuel was used in each state or province, which determines your tax liability or refund.

  • Submit Reports on Time

    IFTA returns are due on the last day of the month following each quarter: April 30, July 31, October 31, and January 31. Late filings come with penalties and interest. Repeated late submissions can also increase the chances of an audit.

  • Fix Errors Promptly

    If you discover a mistake after filing, submit an amended return as soon as possible. Waiting too long to correct errors can complicate your tax records and increase compliance risk.

Accurate filings reduce the risk of penalties and protect your ability to recover tax credits. Inconsistent or sloppy reporting can lead to audits that take time and resources away from daily operations.

Common IFTA Mistakes and How to Avoid Them

Even experienced carriers can make small IFTA errors that lead to larger problems. Most issues stem from inconsistent tracking, missing documents, or incorrect mileage calculations.


Some of the most common mistakes include:

Estimating mileage instead of using actual trip data


Manual estimates often create discrepancies that raise red flags during audits.

Missing filing deadlines


Late submissions lead to automatic penalties, even if the data is accurate.

Misplacing or failing to keep fuel receipts



Receipts must be complete and legible. Missing details or receipts in another company’s name can make the purchase ineligible.

Using incorrect MPG calculations



An inaccurate miles-per-gallon rate throws off the entire return and may result in underreporting or overreporting fuel use.

To avoid these problems, carriers should review records regularly and maintain a consistent filing process. Using reliable tracking tools and organizing receipts in real time can prevent last-minute errors. If mistakes are found, correcting them quickly limits exposure during reviews.

How National Fleet Services Can Simplify IFTA Compliance

National Fleet Services takes the guesswork out of IFTA reporting. We handle mileage tracking, fuel purchase monitoring, and quarterly filings so your fleet stays compliant without the added stress.


Our process reduces errors, lowers audit risk, and frees up your team to focus on operations. You get accurate, on-time reports backed by expert support.


Request a demo to see how we can help manage your IFTA requirements.

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