We have already explored what the IRP and trip permits are and how they are different from one another, but have you know found yourself wondering about IFTA and fuel permits? If the answer is yes, no worries, we are here to simplify the filings for you and help you better understand how they work! Just like with the IRP and trip permits, the IFTA and fuel permits are related filings that many truckers who need the Form 2290 filed also need. However, you do not need to have both the IFTA, and fuel permits filed. Depending on your needs as a truck driver, you will only need to have one type of permit on file. To help you understand which is right for you, let’s break each permit type down.
What is IFTA?
IFTA is an acronym that stands for the International Fuel Tax Agreement. It is an agreement with all of the 48 states in the continental United States that benefits interstate drivers. The agreement also works in the 10 provinces of Canada. This permit type allows all states to collect revenue for fuel taxes in an efficient and simple manner that benefits states and drivers. Rather than filing for new permits every time you travel interstate, you simply just complete one annual filing, and the states do the rest. When you go in and out of states, your mileage is recorded, and revenue is distributed to the jurisdictions based on how much driving you did there.
The IFTA is perfect for truckers who repeatedly or most often do interstate drives. When you are a part of the International Fuel Tax Agreement, you merely have to keep on top of your fuel receipts and your mileage to ensure accurate reporting is done to the states. Quarterly you have to file an IFTA tax return, which reports the driving done per state, and then each state gets its portion of your fuel taxes. In order to have an active IFTA, you need to have the IFTA decals on display on your vehicle.
What are Fuel Tax Permits?
Fuel tax permits follow the same idea as the IFTA, but they are temporary and specific to individual trips. They are filed in order to ensure each state receives its fair share of fuel tax reports. However, fuel tax permits require you to specify which state(s) you are traveling in ahead of your trip. The permit is only active for the duration of that trip.
Fuel tax permits are ideal for truck drivers who operate primarily as intrastate drivers. If you only do interstate trucking a couple of times a year, then fuel tax permits are the way to go!
Specific Requirements
It is important to note that no matter what kind of trucking you are doing, whether it is intrastate or interstate, you are only required to have an active IFTA or fuel tax permit if you operate a vehicle with a gross vehicle weight rating of 26,000 or more.
If you need help obtaining an IFTA license or fuel tax permits, give us a call! While we specialize in the Form 2290 filing, we provide filing services for all major truck permits.
