Miles are extremely significant in IFTA audit. Obtaining or calculating wrongly can lead to unwanted fines and IFTA audit. Whether if you have a previous good understanding of IFTA mileages or not, this report will brush through and clear the concepts on IFTA and non-IFTA miles to get your heavy highway use tax. So let's just get started. The first question is what are Complete IFTA miles? Total miles means the miles that your fleet ran in the jurisdiction regions in the quarter.
It covers the IFTA miles; it does not include non-IFTA miles and non-taxable miles. The global fuel tax agreement miles or IFTA miles are the distance your vehicle ran in most jurisdiction locations. It also includes distances to mechanic shops, conveyance and deadhead miles. The personal conveyance is the deadhead miles but is accounted for when you are in the jurisdiction area. Drivers can explicitly mention the cause in the IFTA audit. Reporting the miles is quite helpful for the trucking owners.
This can help benefits in getting higher MPG. This greatly helps to reduce the IFTA tax equilibrium. Fuel consumed with high MPG means low tax rates in the jurisdiction area. Any miles covered by the automobile in the non-jurisdiction region is known as the non-IFTA miles. The non-jurisdiction region includes Alaska, Hawaii, District of Columbia, Yukon Territory, Northwest Territory, Nunavut, and Mexico. The distances covered in the regions are known as the non-IFTA state miles.
Every nation has some unique exemptions. Nontaxable miles are linked to heavy highway use tax. The exemptions are also of different kinds. The exemptions are similar to fuel exemptions, distance exemptions and vehicle exemptions. The exemptions vary yearly. Some of the cases of exemptions regions are Forest Roads in California, Agricultural Roads in Utah, Trip Permits in New York, Pike Miles or Toll Roads in Massachusetts. Some jurisdictions in the form of exemptions are fuel permitted.
This means if you purchase a fuel permit the miles drove will not be under the tax. It is quite important to know about these exemptions and when to utilize. Not only it will help you in saving taxes but also help in filing the IFTA report correctly. To know what is IRP miles. IFTA mileage is equivalent to the IRP mileage. It's quite important to have a proper track of precise miles and miles covered at the time of IFTA reporting. An IFTA audit occurs randomly and the miles covered are checked very closely.
You won't need to get hefty fines because of the sheer ignorance of the miles covered in heavy highway use tax. Employing the IFTA tax calculator is a great aid in solving complex and lengthy mathematical calculations involved in IFTA. Total IFTA miles don't cover non-IFTA miles. IFTA miles are any distance covered in the jurisdiction areas and non-IFTA is the space covered in the non-jurisdiction. The distances covered in the non-jurisdictions are the Non-IFTA miles. The IFTA report contains only the IFTA miles.