The International Fuel Tax Agreement requires every trucking company operating across state or provincial lines to file quarterly returns that consolidate fuel purchases and miles driven in each jurisdiction. The goal is to make sure each state gets its fair share of fuel tax based on actual miles driven within its borders, regardless of where the fuel was purchased. If you bought most of your fuel in a low-tax state but drove significant miles in a high-tax state, you’ll owe the difference to that high-tax state.

Each quarterly return requires two things. First, total fuel purchased by jurisdiction. Every fuel receipt needs to include the date, vendor name, location with city and state, number of gallons, price per gallon, and total cost. Bulk terminal purchases, truck stop fill-ups, and cardlock transactions all need to be documented. If you can’t prove the purchase, you can’t claim credit for the tax you paid on it.

Second, total miles driven by jurisdiction. Most carriers use ELDs or GPS systems that automatically log state-by-state mileage. If you’re still tracking manually, you’ll need Individual Vehicle Mileage Records showing the route traveled, starting and ending odometer readings, and every jurisdiction crossed. Manual tracking is far more error-prone, which is why electronic tracking has become the standard.

Filing deadlines fall on the last day of the month following each quarter. Q1 is due April 30, Q2 is due July 31, Q3 is due October 31, and Q4 is due January 31. Late filings bring penalties and interest, and repeated late filings can put your IFTA license at risk.

IFTA is one of the most heavily audited areas in trucking. Auditors will compare your reported miles and fuel purchases against ELD data, fuel card transactions, toll records, and dispatch logs. Discrepancies between what you reported and what the supporting records show lead to assessments, back taxes, and penalties. You’re required to keep all supporting documentation for at least four years.

Fuel cards help on the purchasing side because they generate detailed transaction reports with exactly the data points IFTA filings require. But you still need to reconcile those reports against your books. Duplicate charges, personal fuel purchases on a company card, or missing transactions all create problems if an auditor pulls your records.

The freight and logistics bookkeeping side is where many small carriers fall behind. Fuel purchases need to be recorded accurately in your accounting system and coded by vehicle and jurisdiction. Miles need to be compiled and matched to the same periods. When your books are months behind or disorganized, preparing accurate IFTA returns turns into guesswork instead of a straightforward quarterly task.

Keep fuel receipts, ELD reports, and trip sheets organized by quarter. Digital storage works as long as the records are complete and accessible. For active carriers, an IFTA audit is usually a matter of when and not if. Having clean, organized records is the difference between a routine review and a costly assessment. Bronx bookkeepers who understand the trucking industry can keep your fuel records current throughout the quarter so you’re not scrambling every time a deadline approaches.