The International Fuel Tax Agreement (IFTA) and the International Registration Plan (IRP) are the two most significant entities of motor carrier tax and registration. Most fleets spend a significant amount of time gathering required information, ensuring accurate vehicle registrations and enrollment, and filing quarterly and monthly reports.
Fuel Tax Reporting
Manage Your Tax Reporting and Vehicle Licensing
Comply with IFTA & IRP
Encompass provides:
Alleviate the operational and regulatory challenges of IFTA and IRP compliance by automating your reporting processes with J. J. Keller® ELDs, Encompass® Vehicle Tracking, and the J. J. Keller® Encompass® Fleet Management System.
"We provide the fuel receipts from Encompass to file our quarterly taxes. It works very well for us because we're a limited manpower type of corporation. I'm able to handle all the logistics and fleet management on my own."
Woody Cummins
Fleet Manager
"Our driver operates in all 48 states. He previously had to spend 4-5 hours a week on paperwork. He uses Encompass all the time to keep track of his fuel tax reporting. With Encompass, he says his job is 'click-click-done'. He loves it!"
Crystal Evans
Business Manager
"IFTA reporting in Encompass is a huge timesaver. I like the ease of being able to enter my fuel information into Encompass right after I fuel up. That way, I can put the receipt away and not have to think about it again. I just have to file my quarterly reports, and boom, it's done!"
John D. Rentz Jr.
Owner/Operator
"I like the fact that I'm able to calculate IFTA reports automatically with Encompass. I like the ability to file these reports on my own and not have to rely on someone else."
Tom Lange
President
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Automated IFTA Reporting with ELDs
J. J. Keller® ELDs automatically record and transmit miles traveled within each state to the Encompass back office, taking paperwork off the driver’s to-do list. No more tracking down drivers’ missing paperwork and miles. Plus, Encompass has reporting that compiles fuel records and distance recaps for each vehicle. It stores your records indefinitely to meet the four-year IFTA recordkeeping requirement.
Automated IFTA Reporting with Vehicle Tracking
Encompass® Vehicle Tracking offers optional automated Fuel Tax Reporting. It captures total trip distance and miles traveled in states with the J. J. Keller® VT100 Telematics Device or the Geotab GO Device. Encompass also provides a centralized repository for all required documentation, supports the data import of fuel cards, and accommodates “weight-distance” tax.
Manual IFTA Reporting
The Encompass® System offers the ability to manually key in drivers’ fuel records and distance recaps for each individual vehicle mileage record (IVMR) for easy submission of your IFTA reports electronically. You can also upload fuel records for even faster, more accurate IFTA reporting.
IRP Reporting
Encompass with ELogs automates reporting by electronically gathering both the distance traveled by each apportioned vehicle in the fleet during the calendar month, and the distance traveled in the month in each jurisdiction, so you easily submit accurate IRP monthly summaries. Plus, the Encompass® System helps you comply with requirements for the preservation of records. IRP requires the licensee to preserve the records the apportioned registration application is based upon for the current application year, plus the three preceding mileage years. Depending on when you might be required to renew your registration, this time period may be over six years. For this reason, it’s recommended to keep your mileage data for six and one-half years. End a tedious and time-consuming reporting process and set your drivers free from extra paperwork and accounting.
FAQs
Mistakes and omissions made in the completion of your IFTA reports, or late reporting of miles or fuel purchases, could put your company at risk of an audit. And if you’re audited, missing this information could result in penalties. Auditors can choose to recalculate reported taxes by dropping your reported miles per gallon by 20%, or by dropping the miles per gallon to 4.0 (a lower MPG means higher taxes), not to mention adding interest.
Vehicles that qualify for IRP and IFTA share the same characteristics and need to meet one of the following criteria:
- Has two axles and a gross vehicle weight or registered gross vehicle weight exceeding 26,000 pounds;
- Has three or more axles regardless of the weight of the power unit; or
- Is used in combination with a trailer and the weight of such combination exceeds 26,000 pounds gross vehicle weight or registered gross vehicle weight.
The International Registration Plan is an agreement that provides for the apportioned registration of commercial motor vehicles, allowing a qualifying commercial vehicle to travel through several jurisdictions with one license plate, provided the apportioned registration fees have been paid for each jurisdiction of travel shown on the cab card. The lower 48 states, the District of Columbia, and the 10 Canadian provinces are members of the organization.
Registration is based upon “apportioning” the fees, which means paying fees in proportion to the distance traveled in each jurisdiction. For example, if a carrier operates 70 percent of its miles in Wisconsin and 30 percent of its miles in Illinois, then 70 percent of the registration fees are paid to Wisconsin and 30 percent to Illinois. A carrier registers in a single base state or province (base jurisdiction). When you are apportioned, you must keep track of all mileage by jurisdiction using an individual vehicle mileage record (IVMR) or other electronic recording devices, such as GPS or electronic logging devices.
Most fleets tracking this information manually struggle with:
- Locating missing IVMRs and related data, including miles
- Compiling the miles in each state and province
- Accurately completing required forms
- Overlooking miles when totaling miles for each jurisdiction
Drivers must track and record all miles for IFTA-qualified vehicles and IRP-apportioned vehicles. This includes miles accumulated due to personal use, vehicle repairs, and yard moves. Some mileage exceptions exist for fuel tax purposes, but those miles must still be recorded.
For example, miles accumulated on the Massachusetts turnpike are exempt from IFTA taxes. Other exceptions include off-highway or agricultural and forestry miles, but the exceptions are jurisdiction-specific. Carriers who think they’re eligible for exemptions should consult with the jurisdiction prior to claiming the exemption.
Build Your Compliance Knowledge
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IFTA and IRP Compliance for Regulated and Non-Regulated Fleets
This compliance brief provides important high-level details on IFTA and IRP requirements for regulated and non-regulated fleets.
IFTA Compliance with the Encompass Fleet Management System
Fuel and driver pay increases show little indication of slowing down. Use these tips to tackle the rising costs of operating your fleet.
IFTA & IRP Compliance: Frequently Asked Questions
Both IFTA and IRP involve an extensive amount of recordkeeping. This whitepaper answers the most common questions.
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