IFTA Fuel Tax reporting and payments are an important requirement for all trucking companies in United States and Canada. The fuel taxes in all 48 states of United States and 10 provinces of Canada are not the same. They vary according to the place, so it is very tough for trucking company owners to file International Fuel Tax.
The International Fuel Tax Agreement (IFTA) is a common legal understanding between United States and Canada (48 states of US and 10 provinces of Canada), that deals with simplification of reporting fuel tax by motor carriers.
According to IFTA, trucking companies have to pay quarterly taxes to all states (where there trucks are ferrying). Even the tax rates in different states are different and the tax is calculated based on miles driven by a truck in any particular state. Trucking companies has to rely upon the manual logs maintained by drivers on daily basis. It was not less than a nightmare to finalize the IFTA taxation process for trucking company owners.
For owners of multiple trucks, keeping track of all trucking receipts for their fleet was time-consuming and in case if any mistake either by owners or by drivers, the possibility of error on your fuel tax reporting could lead a completely new set of worries.
To automate this task of reporting IFTA Fuel Tax and minimize the possible errors caused by manual calculation, some companies came up with a customized software application, specifically developed to handle all tasks related to IFTA Fuel Tax reporting. The IFTA Fuel Tax Software reduces the complexity involved in this task and makes it just a game of few mouse clicks. The software does all the calculation itself providing you accurate details of taxes to file in individual states.
Due to an attractive market for IFTA Fuel tax Software, there are several players in development of such customized applications. However, it is completely up to the trucking company owners to test and judge the best possible software applications suiting their needs. The licensing, applications, reporting features, and user interface were some of the decision makers for purchasing a IFTA Fuel Tax Software.