International Fuel Tax Agreement (IFTA) is basically an agreement among various states that need to provide reports of fuel taxes through interstate motor carriers. Under IFTA services, commercial carriers mostly keep a detailed record of the distance traveled and fuel tax paid in all those states and provinces where the vehicles travel in. This agreement is mainly created for those truckers and drivers that have frequently crossed the state lines on their routes.
Why IFTA is necessary?
IFTA is legal compliance that helps the truckers to keep their proper record of miles traveled and the fuel their vehicle consumed in their whole travel. Other than this, the agreement allows and helps the traveler by reducing their paperwork and compliance burden for fuel tax reporting.
Reasons why taking IFTA services from professionals is a wise decision
There are various reasons that made people to know about the services related to the agreement and why they are important and how they will help them in getting convenience. The main reasons regarding the importance of these services are mentioned below.
- It is a legal requirement: The IFTA agreement is a legal requirement as truckers will get to know about their tax deductions through this. Instead of this, they get the professional help in even calculating the distance that they traveled during their whole journey.
- Penalties for non-compliance: After delaying a quarterly IFTA return, a traveler has 30 days to complete the requirements before their license is revoked. The greater of $50 or 10% of the total amount of taxes payable is charged as a penalty for late payments.
- It provides convenience: The people or travelers get the convenience in such a way that they don’t have to face any burden related to paperwork during the tax reporting. The professionals recommended are responsible for handling all their work and providing them with the report so that they can pay the taxes as per that report’s convenience.
- It helps them to stay updated: The professional that helps them in their tax-related process even provides them with time-to-time updation of the services and changes made to them. So at the same time, professionals and travelers can be on the same page so that during further processing all are aware and updated about the necessary details. This way it would become easy for truckers and professionals to communicate with each other.
For more information and a clear understanding, don’t forget to join Pioneer Trucking Solution’s online family, to get updated with all the basic understanding of the IFTA services that professionals will let you know in detail.