Questions and Answers about International Fuel Tax Agreement (IFTA)International Fuel Tax Agreement (IFTA): What is the purpose of the International Fuel Tax Agreement (IFTA)? The purpose of this Agreement is to promote and encourage the fullest and most efficient possible use of the highway system by making uniform the administration of motor fuels use taxation laws with respect to motor vehicles operated in multiple member jurisdictions. Enable participating jurisdictions to act cooperatively and provide mutual assistance in the administration and collection of motor fuels use taxes. Establish and maintain the concept of one fuel use license and administering base jurisdiction for each licensee and to provide that a licensee's base jurisdiction will be the administrator of this Agreement and execute all its provisions with respect to such licensee.
What does this mean for me as a carrier? States collect taxes on the motor fuel used within their borders to build and maintain the roads and highways that link their communities to each other and the rest of the nation.
As an interstate motor carrier traveling in Kansas, you pay your share of these taxes according to the provisions of the International Fuel Tax Agreement (IFTA). This agreement, recognized by 5. Specifically, Kansas participation in IFTA means that.
Qualified Motor Vehicle means a motor vehicle used, designed, or maintained for transportation of persons or property and. In order to qualify as a recreational vehicle, the vehicle shall not be used in connection with any business endeavor.)What member jurisdiction must I obtain my IFTA license in? The member jurisdiction where the qualified motor vehicles are based for vehicle registration purposes and. If you have fleets in more than one jurisdiction and want more information on consolidating your fleets under one base jurisdiction call the Kansas Department of Revenue IFTA section.“Base Jurisdiction,” establishes the jurisdiction to which a carrier will make fuel tax payments.
Your base jurisdiction will then distribute the appropriate amount of tax owed to each IFTA member jurisdiction for you. Kansas will be your base jurisdiction if.
Sampling in Sales and Use Tax Audits Bibliography of Review Articles and Books Will Yancey, PhD, CPA Email: [email protected] Office phone 734.744.4400 Maintained by ACLR. Please e-mail your suggestions for additions and.
How to Prepare for a DOT Audit The DOT has just informed you that your transportation operation will be audited. Do you know what records will be reviewed? Do you comply with the regulations? This is the one roman numeral that seems very natural. For the claim that Roman numerals are efficient for computation, see two classics-list postings: and I Immediate. Designate process agent. The process agent you select will be the entity “upon whom court papers may be served in any proceeding” against your business, FMCSA notes. This publication provides information about the International Fuel Tax Agreement (IFTA) program and outlines the requirements and responsibilities of a licensee. The Maryland Motor Fuel IFTA Tax online systems provides IFTA licensing, renewal and tax return with payment options as well as downloadable forms, IFTA compliance manual and contact information.
You can purchase a Trip. Permit at any Motor Carrier Inspection Station along the jurisdiction border or through the Central Permit Office (7. Must I reapply each year for an IFTA license? Yes, you will be mailed a renewal application prior to the expiration of your current credentials. I currently have an active IFTA license and I am adding another vehicle to my fleet what can I do? Kansas will issue a 3.
The Maryland Comptroller's Motor Fuel Tax division handles IFTA. For an IFTA compliance manual and to file electronically, visit the Comptroller's Office Motor Fuel Tax Division. In-State Operations -- Maryland-only.
IFTA temporary permit valid for all member jurisdictions to carry in lieu of displaying the annual decals. A temporary decal permit will only be issued to a licensee in good standing. It will be vehicle specific, and you are only allowed one per vehicle.
You will need to make sure you have a copy of your IFTA license in the vehicle along with this temporary decal permit. You will need to purchase an additional decal before your 3.
Are there any reporting requirements to the base jurisdiction? The licensee shall file a calendar quarterly return with the base jurisdiction and shall pay all taxes due and included with the return.
Tax returns are required even if no operations were conducted or no taxable fuel was used during the reporting period. Tax Return, and full payment of taxes, shall be due on the last day of the month following the close of the reporting period for which the return is due. If the last day of the month falls on a Saturday, Sunday, or legal holiday, the next business day shall be considered the final filing date. What is the date that my IFTA return & payment must be filed by? IFTA Return Due Dates. Quarter January through March: April 3.
Quarter April through June: July 3. Quarter July through September: October 3.
Quarter October through December: January 3. When is penalty and interest assessed? Penalty of $5. 0.
Penalty will be assessed when failing to file a return, filing a late return, or underpaying taxes due. Interest shall be assessed at the rate of one (1) percent per month, on all delinquent taxes due to each jurisdiction. How are credit balances taken care of? You may request a refund of your credit balances of $1. IFTA return form 8.
If the box is not marked, the credit balance will be applied to your next return. Credit balances cannot be carried for more than eight quarters (two years) from the date established. What if I do not file my IFTA quarterly report? Failure to file your quarterly fuel tax report will result in the Revocation of your carrier’s IFTA license.
To reinstate the license, a bond must be posted in addition to paying delinquent taxes, penalties, and interest. What are some of the reasons my license could be revoked?
Your IFTA license may be revoked for any of the following reasons. To surrender your license you need to sign and date the bottom of the license and mark the quarter you want the license surrendered. You must remove the IFTA decals from vehicles, and return the license, all unused decals, and any part of the decals that have been removed from the vehicles to the Kansas Department of Revenue IFTA office. A final audit may be conducted by any member jurisdiction upon cancellation. The records must be retained for four years after the due date of the final quarterly tax report. If your license was misplaced or destroyed, you will need to submit a statement of what has happened to the license and decals.
Include your name and phone number so the IFTA office may contact you if there is any additional information needed. What if I leave the decals on my vehicle after my license has been surrendered or revoked? You will be subject to all appropriate penalties if you are found traveling on a surrendered/revoked license and or decals. Are there any record keeping requirements with this license?
Yes, every licensee shall maintain detailed records to substantiate information reported on the quarterly tax returns. You must maintain your records for a period of 4 years.
For details of record keeping refer to the IFTA Article of Agreement Manual at http: //www. Are the mileage record keeping requirements similar for both IFTA and IRP?
Yes, the required elements include. Other equipment monitoring devices that transmit data or may be interrogated as to vehicle location or travel may be used to supplement or verify handwritten or electronically- generated trip reports. Any device or electronic system used in conjunction with a device shall meet the requirements stated in this Section. On- board recording or vehicle tracking devices may be used in conjunction with manual systems or in conjunction with computer systems.
P6. 20 DEVICES USED WITH MANUAL SYSTEMSAll recording devices must meet the requirements stated in IFTA Procedures Manual Section P6. P6. 60. When the device is to be used alone, printed reports must be produced which replace handwritten trip reports. The printed trip reports shall be retained for audit. Vehicle and fleet summaries which show miles and kilometers by jurisdiction must then be prepared manually.
For further detailed requirements please reference the IFTA Procedures Manual located on the IFTA web- site www. Are you allowed to claim fuel pulled from bulk storage? Yes, to obtain credit for withdrawals from licensee- owned tax paid bulk storage, the following records must be maintained. Kansas is required to audit 3% of their base jurisdictions licensee’s every year. Licensees selected for an audit will be contacted in writing 3.
The auditor(s) will notify the licensee of the time period to be audited and the records to be reviewed. After the audit, the licensee will be advised of the audit findings, including adjustments to fuel tax liabilities for affected jurisdictions, and suggestions for record- keeping improvements. The other member jurisdictions affected will be notified of the results. The licensee may be subject to a supplemental audit if any member jurisdiction disagrees with the audit results.
Do I have any appeal rights for my audit? Yes, if you do not agree with your audit findings you may request an informal conference from the Secretary of Revenue. To request an informal conference, please send a written request, stating the reasons for your objections along with a copy of the audit notice. In order to preserve your appeal rights you must request a conference within 3. Send your request to: Office of administrative Appeals, Kansas Department of Revenue 9.
SW Harrison ST., Topeka KS 6. Once we review your request, we will contact you to schedule the informal conference. If possible, the conference will be held over the telephone to save you time and travel expense.