IFTA Audit - Why is It Necessary to Follow?


The mileages are the backbone of the IFTA report. Getting this wrong during the calculation is an invitation to IFTA audit and hefty penalties. Whether if you've got a previous good understanding of IFTA mileages or not, this report will brush through and clear the concepts on IFTA and non-IFTA miles for your heavy highway use tax. By the end of the article, you'll have a good understanding of IFTA and non-IFTA miles to get your heavy highway use tax. The first question is what are Complete IFTA miles? Well, the complete IFTA miles are the miles you will be taxed for. It covers the IFTA miles; it doesn't include non-IFTA miles and non-taxable miles. The international fuel tax agreement miles or IFTA miles are the distance your vehicle ran in all jurisdiction locations. The distances can be personal conveyance, mechanical shops or deadhead miles. All the distances need to be accounted for. 

Drivers can explicitly cite the cause in the IFTA audit. Reporting all the miles including the a aforementioned is quite beneficial for the trucking owners. This will help in higher MPG. Fuel consumes with greater MPG means lower taxable fuel per authority. Fuel consumed with higher MPG means low tax rates in the jurisdiction area. The non-IFTA miles are the miles covered by your vehicle in the areas of non-jurisdiction. The non-jurisdiction areas are Alaska, Hawaii, District of Columbia, Yukon Territory, Northwest Territory, Nunavut, and Mexico. The distances covered during the miles are Non-IFTA miles. Exemptions are exceptional in every state. Nontaxable miles are related to heavy highway use tax. The exemptions are like fuel exemptions, distance exemptions and vehicle exemptions. The exemptions vary annually. The most common examples of exemptions regions are similar to Forest Roads in California, Agricultural Roads in Utah, Trip Permits in New York, Pike Miles or Toll Roads in Massachusetts. 

Some jurisdictions exemptions in the form of fuel permitted. This means when you get the permit the miles drove won't be accounted for. You should in details about these exemptions and when to utilise it. Not only it can assist you in saving taxes but also help in submitting the IFTA report correctly. To know what's IRP miles. It is the IRP mileage that's equal to your IFTA mileage. Accurate mileage and miles covered are significant in IFTA reporting. An IFTA audit happens randomly and the miles covered are checked very closely. You should be conscious of the miles covered in heavy highway use tax and IFTA audit, so to avoid any penalties due to any miscalculations. You can take control with an wonderful range of IFTA tax calculators that's available to facilitate your responsibility. Non-IFTA miles aren't covered in the complete IFTA miles. The distance covered under the member jurisdictions is IFTA miles. Total Taxable miles do not have applicable exemption mile. The highway use tax comprises only the IFTA miles.

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