Miles are very significant in IFTA audit. Obtaining or calculating wrongly can result in unwanted fines and IFTA audit. Whether in the event you have a fantastic understanding or not let's know the IFTA mileages in detail in this report. By the end of the guide, you will have a good understanding of IFTA and non-IFTA miles for your heavy highway use tax. The first question is what are Complete IFTA miles? Total miles means the miles your fleet conducted in the jurisdiction regions in the quarter. 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 would be the distance that your fleet ran in all the jurisdiction areas. It additionally includes spaces to mechanic shops, conveyance, and deadhead miles. All the distances need to be accounted for. Drivers can explicitly mention the cause in the IFTA audit. Reporting all the miles including the above is quite helpful for the trucking owners. This can 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 regions of non-jurisdiction. The non-jurisdiction regions are Alaska, Hawaii, District of Columbia, Yukon Territory, Northwest Territory, Nunavut, and Mexico. The distances covered during the miles are Non-IFTA miles. Every state has some unique exemptions. Nontaxable miles are not subjected to heavy highway use tax. The exemptions are also of different types. They're fuel exemptions, space exemptions, and vehicle exemptions. The exemptions vary annually. 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 exemptions in the form of fuel permitted. This means if you buy a fuel permit the miles drove won't be under the tax. You need to in details about these exemptions and when to utilize it. Important link, if you're looking for more information about IFTA audit manual.
Not only it can help you in saving taxes but also help in submitting the IFTA report correctly. Being a trucker you should also know what's an IFTA mile? It is the IRP mileage which is equivalent to your IFTA mileage. It is very important to get a proper track of accurate miles and miles covered at the time of IFTA reporting. Generally, an IFTA audit happens randomly and the auditor would like to check miles covered very closely. You will not need to get hefty fines because of the utter ignorance of the miles covered in heavy highway use tax. Employing the IFTA tax calculator is a great help 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 regions and non-IFTA is the distance covered in the non-jurisdiction. Total Taxable miles don't have applicable exemption mile. The heavy highway use tax comprises only the IFTA miles.