How do I prepare for IFTA reporting?
IFTA preparation starts with what you track every day, not what you scramble to pull together at quarter end. The carriers who file smoothly are the ones who built tracking into their routine from the beginning.
Keep a mileage log for every trip that records odometer readings at each state line crossing. Write down the state you entered, the odometer reading when you crossed, and keep it consistent throughout the quarter. Electronic logging devices make this easier by automatically recording location data, but you still need a system to pull that data into jurisdiction-by-jurisdiction totals.
Fuel receipts are the other half of the equation. Every fuel purchase needs a receipt showing the date, location, number of gallons, and the state where you fueled. Keep these organized by week or by trip. Missing or illegible receipts create problems during an audit because you can’t claim fuel tax credits without documentation.
At quarter end, you’ll calculate total miles driven in each jurisdiction and total fuel purchased in each jurisdiction. The IFTA return uses these numbers to figure out whether you owe additional fuel taxes to certain states or get credits from others. States have different fuel tax rates, and those rates change quarterly. You’ll need to look up the current rates when you file.
Quarterly returns are due by the last day of the month following the quarter. First quarter runs January through March and is due April 30. Second quarter is due July 31. Third quarter is due October 31. Fourth quarter is due January 31. Late filings mean penalties and interest, and if you owe money, those penalties stack up fast.
New Mexico is your base jurisdiction if your trucking business is based here. That means you file your IFTA return through the New Mexico Taxation and Revenue Department. Your base jurisdiction is where you submit the return, but the return covers miles and fuel for every state you operated in during the quarter.
The math isn’t complicated once you have good data. The hard part is having that data when you need it. Carriers who track mileage and keep receipts consistently spend maybe an hour preparing their quarterly return. Those who reconstruct everything from memory and bank statements spend days and still miss things.
If IFTA tracking feels overwhelming on top of running routes, consider working with bookkeeping services in Santa Fe NM that understand transportation accounting. A bookkeeper who knows IFTA can set up systems that make quarterly filing routine and catch errors before they become audit problems.
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