What Is IFTA and Why It Matters for Trucking Carriers?
If you’re a trucking operator crossing multiple state or provincial lines, you’ve probably heard of IFTA—the International Fuel Tax Agreement. But what exactly is it, how does it work, and why is it essential for your operations and insurance renewals? Let’s break it down.
What Is IFTA?
IFTA is a cooperative agreement between 48 U.S. states and 10 Canadian provinces. It simplifies the process of reporting fuel taxes for interstate motor carriers. Instead of filing separate fuel tax reports in each jurisdiction, carriers file a single quarterly report, and taxes are distributed accordingly.
How Does IFTA Work?
Here’s how it goes: as your fleet moves through different jurisdictions, you track the miles driven and fuel purchased in each one. At the end of each quarter, you file one consolidated report, and the taxes are automatically allocated where they’re owed.
This system reduces paperwork, lowers the risk of filing errors, and helps you stay compliant with government regulations.
What Records Do You Need for IFTA?
Accuracy is everything. To stay compliant, you must maintain:
Fuel receipts
Mileage logs
Distance records by jurisdiction
Why? Because these details determine how much tax you owe. Errors or missing documents can lead to penalties or delayed renewals.
Why IFTA Status Matters for Renewals
Having a current IFTA report isn’t just about taxes—it’s crucial when renewing insurance or quoting with new carriers. Outdated or missing IFTA data can create red flags and cause costly delays.
Quarterly reporting is mandatory, but there are user-friendly tools and services available that can help make the process seamless.
Support That Keeps You Rolling
At Westins Insurance Brokerage, we understand that staying compliant is about more than just ticking boxes. It’s about keeping your operations smooth, your paperwork in order, and your opportunities open.
✅ No missed deadlines.
✅ No compliance headaches.
✅ And yes—having accurate IFTA reports means you're always ready to quote with new carriers.
Need Help or a Quote?
We’re here for every mile, in every state.
📞 Call us today at (714) 465-4433 or
👉 Visit www.westinsinsurances.com to get started.
