Do I Need IFTA for Intrastate Driving?

Do you drive for intrastate commerce and are wondering, "Do I need IFTA for intrastate driving?" At FMCA Filings we're the comprehensive place to get all your information about the trucking industry. Whether you require help with your USDOT number application or registering for your IFTA license, our website portal makes the process easy and stress-free.

Understanding IFTA

The International Fuel Tax Agreement between the 48 contiguous United States and the Canadian provinces (but not territories) exists to streamline and centralize how motor carriers report their fuel use across multiple jurisdictions. After receiving an IFTA license, you'll receive two decals for each vehicle you operate.

Under the IFTA, you must:

• File a quarterly fuel tax report
• Register a base state
• Confirm your vehicle qualifications
• Keep adequate documentation

Who Needs IFTA?

Whether you drive intrastate or interstate, you still might require IFTA registration. Each state has its own criteria for fuel taxing, but as a matter of convenience, many follow the interstate rules. As an intrastate carrier, your state may register for an IFTA license if you drive a vehicle that transports people or property and meets any of the following criteria:

• Two axles with a gross weight exceeding 26,000 pounds
• Three axles
• The weight of the vehicle exceeds 26,000 when used in combination

Recreational vehicles, such as motor homes or pickup trucks with attached campers, can apply for exemptions if they're used only for non-commercial purposes.

How To Register With IFTA

You can easily register for your IFTA license on the FMCA Filings. Our user portal makes it easy, but if you have trouble, you can reach out to one of our agents for help. Your license stays valid until December 31 every year, and you must renew it before this date to prevent it from expiring.

Prepare the following documents or information to complete your filing more efficiently:

• You must prove your legal residency in one state. You can use a mortgage, lease, or three years' worth of federal income taxes.
• Your vehicle must have an apportioned plate legally registered in your base state. You'll have to enter the license plate number.
• You must provide your valid USDOT number.
• You must document the names and social security numbers of every owner or officer of your company.

Post-Registration Considerations

Now that you know the answer to, "Do I need IFTA for intrastate driving?" you can start understanding best practices after you receive your license.

Storing Your Registration

When you receive your two decals, you must display each one in clear view on both sides of the cab. You should also keep a copy of your license at your home office and in each vehicle you operate. If you change anything relevant on your vehicle, such as its license plate number, you must report the changes promptly to avoid falling out of compliance.

Filing Tax Reports

You must file IFTA returns based on the following schedule:

• The deadline for quarter one is April 30.
• You must file the returns for quarter two by July 31.
• October 31 constitutes the deadline for quarter three.
• The deadline for quarter four is January 31.

Even if you didn't travel any taxable miles that quarter, you must still file a return.

Collecting Data

Many intrastate truckers feel overwhelmed maintaining mileage and fuel purchase data each quarter, but keeping accurate records is a necessary component of staying compliant. You must keep meticulous Trip Reports and your supervisors must also keep monthly fleet summaries.

To stay in compliance, keep your tax returns and any supporting documents for four years.

Documentation

The required method for documenting your fuel expenditures is receipts or invoices. The records must include the following information:

• Date of fuel purchase
• Seller's name 
• Seller's address
• Quantity of fuel purchased
• Fuel type purchased
• Price per gallon
• Vehicle unit numbers
• Your identity

Temporary Filings

What happens if you're an intrastate driver that doesn't have to register with the IFTA, but you're making a rare trip out of state for your work? You can obtain a temporary permit by following the traditional registration steps. 

Ensure you follow all the necessary data collection and documentation for your trip.

IFTA vs. IRP

What's the difference between the IFTA and the International Registration Plan? They're essentially the same thing, but the IRP deals with the registration and the IFTA concerns the taxes you file when registered.

Learn More at FMCA Filings

If you're wondering, "Do I need IFTA for intrastate driving?" the answer is yes, provided your vehicle meets the requirements. At FMCA Filings, we can help you understand everything from DOT weight regulation to how to file IFTA tax reports. You'll find our website easy to use and our agents knowledgeable and helpful.

Can we answer more questions for you? Contact us by filling out our online form. Using our live chat feature, you can also speak directly with an agent.