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April 12, 2023

Timely IFTA Fuel Tax Filing: Avoid Business Complications

A lot of companies do not understand the importance of the IFTA fuel tax. Not filing for it on time can lead to complications for your business. To give you more clarity over this, let’s discuss a few pointers:

What Are The Weight Requirements?

  • If you intend to cross state lines with your truck or semi-tractor or any trailer that has a weight of more than 26,000 lbs and if you are leased to a trucking company that is capable of providing you your IFTA fuel tax stickers and your IFTA fuel tax cab card for your vehicle, there is no need for you to register for your IFTA fuel tax.
  • However, if your vehicle plate says $26,000 LBS or more than that or if your loaded vehicle, whether it is a truck or a trailer has a weight of $26,000 LBS or more, or if you drive a 3-axle truck that has a weight less than 26,000 LBS, or if you intend to cross state lines with a truck that has more than 26,000 lbs of weight, you must register for the IFTA fuel tax. You must also get an IRP license plate.
  • If you drive a truck or a vehicle that has three or more axles and if the gross weight is $26,000 LBS or if it is more than $26,000 LBS when the weight is loaded upon it or if you want to cross state lines with this vehicle, you will have to register for IFTA fuel tax.
  • When you drive a straight truck and pull a trailer and the combined weight of the vehicles when they are loaded is more than $26,000 LBS and if you want to cross state lines with this apparatus, you must register for IFTA fuel tax.
  • Driving a commercial vehicle for hire or a private commercial vehicle and any farm plated vehicle with which you intend to cross state lines or any of the vehicles that have been described above, this requirement will apply to you.

Reporting IFTA Fuel Tax

Usually, your home state is responsible for issuing your IFTA fuel tax credentials to you. At the end of each quarter, you will need to submit a quarterly IFTA fuel tax report. This will include the mileage driven in each state and the fuel that you have purchased in each state during that quarter. You will need to submit this to the IFTA fuel tax department of your home state. Submit the first-quarter report, covering January, February, and March, to the IFTA fuel tax department in April. Similarly, complete and submit the second-quarter report to the department in July. This process will continue until the end of the year and next year as well.

Understanding Various Legal Requirements

Across the country, some states may require that you provide proof of the issuance of IFTA fuel tax documents and legal hauling of loads.

A farmer that intends to cross state lines or a commercial vehicle or a private commercial carrier or a for-hire registrant leased to a trucking company will have to register for IFTA fuel tax.

If you are working as a for-hire carrier and hauling exempt commodities, and if you have an interstate authority, the IFTA fuel tax department is in a position to ask you to show proof of your legal arrangement and the way you operate across state lines. You should also clarify to them that you will be doing your own IFTA fuel tax reporting. In any other situation, they would require you to update your DOT information displaying that you haul exempt commodities or they may require you to produce your motor carrier number or motor carrier permit.

If you are hauling any commodities on a for-hire basis or if you haul any loads that require ICC authority or trucking authority or DOT authority or MC or ICC number, then you can register for your IFTA fuel tax right away This applies to you if your vehicle or vehicle combination is more than 26,000 lbs in weight or if you have a 3-axle truck and you want to cross state lines with it.

Record-Keeping Requirements – IFTA Fuel Tax Made Simple  

Yes, there are a few record-keeping requirements as well that you should be aware of. The state will require you to keep accurate records of your trips and mileages and all the fuel purchases that you have made across the states that you have traveled.

  • Keep a record of all the loads that you haul or empty or pick up and drop at various locations. There will be an IFTA fuel tax state audit as well and you are expected to use your logbook to keep records of all your trips and mileages.
  • Make sure that the state auditor is able to obtain all the information from your logbook. Every time you cross any state lines, the accurate mileage readings should be recorded.
  • You can also use drip sheets to record this information and also the gallons of fuel that you have purchased along the way.
  • The auditor may also need information about the route that you take or choose to take in addition to the mileage readings from your odometer every time you cross state lines.
  • Remember that all the trucks that have IFTA stickers on them will be subject to this fuel tax audit. These can be totally random or even a result of any inaccurate reporting on your part.
  • It is never advised to round off your mileages when you are about to complete and submit your tax report. Get in touch with a dependable third-party DOT Compliance facilitator for efficient fuel tax reporting every quarter.

Additional Information

Applying For Your US DOT Number

If you own a commercial vehicle, you may require to have your US DOT number if you want to do business with other states. If you own a vehicle that has a gross vehicle weight rating of more than 10,000 lbs, you must register it for a USDOT number. The majority of the states across the country need you to fulfill this requirement if you have a combination truck and trailer or a van and trailer combination and the combined gross vehicle weight rating of the entire apparatus is more than 10,000 lbs.

You must go for Unified Carrier Registration if your business uses any vehicle with a GVWR of more than 10,000 lbs or if you have a commercial vehicle that pulls a trailer or any other apparatus with a combined weight of more than 10,000 lbs.

Carrier Authority  

Many names refer to carrier authority, including ICC authority, DOT authority, trucking authority, MC number, DOT authority, absolute trucking authority, ICC number, ICC carrier, ICC MC, ICMC number, FMCSA authority, ICC permit, etc. If you are working for hire and intend to cross state lines, hauling either regular loads or exempt loads that require this document, do it right away. You can also register for the unified carrier registration program along with your IFTA fuel tax filing. Exempt loads are your logs, grain, and livestock. If you want to haul them across state lines, you should apply for your US DOT number as well. But if you are hauling these exempt loads, you do not need an ICC authority or DOT authority.

Broker Authority

If you want to move loads on vehicles or trucks that are not yours, you are going to need broker authority.

IFTA Fuel Tax Quarterly Reporting Is A Must

Remember that your IFTA fuel tax reporting is a must, especially when you are hauling loads across state lines with vehicles or trucks that have a weight of more than 26,000 LBS. You must register for it and remember to file the quarterly report on time with your home state.

BOC-3 List Of Process Agent  

A lot of people get scared of this name probably because they are not aware of it. The BOC-3 list of process agents is a very simple requirement to comply with. If you are a “for hire” carrier and want to apply for your ICC authority or trucking authority or MC authority, you must also register for the BOC-3 list of process agents.

Unified Carrier Registration

If you own a commercial vehicle that has a gross vehicle weight rating of 10,000 lbs or above or if you run a commercial vehicle that pulls a trailer and the combined weight rating is 10,000 lbs or more and if you intend to cross state lines with it, you must register for UCR.

The Unified Carrier Registration (UCR) program requires private carriers, exempt carriers, and vehicles or carriers with ICC authority, MC number, DOT authority, trucking authority, etc. to register.

Single State Registration

You should be aware that the unified carrier registration system has effectively replaced the single state registration system. The former was implemented in September 2007. All the carriers are required to register under this unified program instead of their home state which was the previous requirement.

New York Highway Use Tax Registration

New York requires you to register for a highway use tax. It is a weight distance tax state that requires your vehicle to comply with these requirements if your vehicle has a weight of more than 18,000 lbs. It applies to your truck and trailer combination, tractor and trailer combination, and other commercial vehicles as well. You should apply for this before you enter the state of New York.

Kentucky KYU Registration

To enter Kentucky with a vehicle that weighs 60,000 lbs or more, you must register for a Kentucky KYU number before entering the state.

New Mexico Entry Requirements

New Mexico is also a weight distance tax state. You are required to register for this tax before you enter New Mexico. As, You have to pay a mileage rate to cross this state. You can either do it at the border or you can pre-register for the New Mexico weight distance tax. You just have to pay once every quarter. It is a great idea to pre-register with the state for this tax because otherwise, you will be paying a lot more for it. Whether you are going east or west on I-40 with your commercial vehicle that has a weight of more than 80,000 LBS, you can enter this state by just paying $16.50 instead of $60 if you choose to pre-register.

Oregon Weight Distance Tax Registration

Oregon is the only state that does not have the IFTA fuel tax. If you require to travel through this state, you can either pay at the border when you are about to enter Oregon or register for the weight distance tax and pay a monthly amount.

Texas DOT/ TX DOT/ Texas DOT Authority

Commercial vehicles in Texas require DOT numbers, which Texas issues. These numbers, such as Texas DOT, TX DOT, DOT Texas, Texas DOT license, DOT State TX, and others, are necessary for different types of businesses to conduct various operations. You can easily pick or deliver loads inside Texas by applying for a Texas intrastate authority for your commercial vehicles.

This applies to your truck and semi-tractors, trailers and tractors, and other vehicle combinations. If you intend to pick loads in Texas and want to convey them out of the state or if you want to bring any loads back into the state, you will need to have a US DOT number. Applying for interstate authority, commonly known as ICC authority, MC number, or DOT authority, is also important if you intend to transport loads out of the state or bring back any loads into Texas.

Exempt Loads

There are certain loads that are exempt from any requirements and to haul them you will not need ICC authority or DOT authority or trucking authority. You can cross state lines with them without any such legal formalities but if you are traveling with a vehicle that has a weight of more than 10,000 LBS, you must register for a USDOT number. Also, if the vehicle has a weight of more than 26,000 LBS and you want to cross state lines with it, you will need an IRP license plate. Make sure to register for your IFTA fuel tax and unified carrier registration program as well.

The 2290 Federal Highway Use Tax

If you have a tractor-trailer combination or any vehicle that has a weight of more than 54,999 LBS, you will be subject to an annual 2290 federal highway use tax.

Federal ID Number

If you are an employer filing employment taxes, you will need your federal ID number, also known as EIN. You must file the 2290 federal highway use tax if the weight of your loaded trucks, trailers, or tractor and trailer combination is more than 54,999 LBS. Remember, filing with your social security number is not acceptable.

Understanding Farm Truck And Trailer Regulations

Every state across the US has its own farm truck and trailer regulations. There are different registration requirements as per the state that you live in. You need to get in touch with your state office to know more about these requirements. If you intend to cross state lines with any farm plated trucks, any trailer and tractor combination, or any semi-tractor combination with trucks or trailers, you must register for a US DOT number and IFTA fuel tax.

IRP license plates are important for any trucks and tractor-trailer combinations that have a weight of more than 26,000 lbs and intend to cross state lines. They will also need a US DOT number and will have to file for IFTA fuel tax as well. Any commercial license plate requirements will be primarily based on the weight of the truck or the tractor and trailer combination or any commercial vehicle that you use.

FAQ

What Happens If You Fail a DOT Inspection?

If the vehicle or driver is deemed unsafe, they may be placed out of service, meaning the vehicle cannot operate until all violations are properly corrected.

Who decides which level of inspection to perform?

Both the Commercial Vehicle Safety Alliance (CVSA) and the Federal Motor Carrier Safety Administration have a part in DOT inspection levels. The CVSA develops the criteria and sets the procedures for every inspection level. The FMCSA establishes overall regulations and determines which vehicles must be inspected.

How often do DOT inspections happen?

DOT inspections can happen at any time. They most commonly happen during roadside stops and weigh stations. Carriers with higher risk, poor safety records, or hazardous material may be inspected more frequently.

What documents are required during an inspection?

Documents required during an inspection include but may not be limited to:

  • State driver’s license or commercial driver’s license
  • Medical examiner’s certificate
  • Record of duty status
  • Vehicle registrations
  • Periodic inspections document for all vehicles being operated
  • Shipping papers or bills of lading
  • Information for hazardous materials being transported
  • Proof of insurance

What are common DOT inspection violations?

According to the FMCSA, the 5 most cited roadside violations are:

  1. False Report of Driver’s Record of Duty Status: log falsification providing inaccurate or intentionally altered duty-status information.
  2. No Record of Duty Status (ELD Required): using a commercial vehicle without the required electronic logging device or valid time records.
  3. Inoperable Required Lamp: crucial lights (headlights, brake lights, turn signals, etc.) are not functioning properly.
  4. Operating a Commercial Motor Vehicle Without a Commercial Driver’s License (CDL)
  5. Operating a Commercial Motor Vehicle Without Proof of a Periodic Inspection: failure to meet FMCSA the maintenance standards of a required annual inspection.

Why is updating VMT important for compliance?

VMT is tracked to determine fuel tax obligations (Vehicle Miles Traveled Tax) used for road maintenance and improvements. Trucking companies must keep accurate records of VMT to ensure they pay the correct amount of taxes.

How often should VMT be updated?

For motor carriers VMT must be updated every two years along with the MCS-150 form for the Biennial Update.

Can VMT be tracked automatically with technology?

Yes, Electronic Legging Devices (ELDs), Fleet Management Apps, and Mileage Tracking Software are all technological advancements that can simplify the process of VMT tracking.

How does VMT affect taxes and fuel reporting?

Accurate VMT records help document mileage for business-related tax deductions, ensuring compliance with IRS regulations. It also supports fuel tax reporting by tracking the miles each vehicle travels in different jurisdictions, which is essential for state and federal fuel tax calculations. Proper tracking reduces errors, prevents penalties, and provides a clear record of operational costs.

How do I know when my Biennial Update is due?

  • Your filing schedule depends on the last two digits of your USDOT number. The last digit corresponds with what month the form needs to be filed in. January is 1, February is 2, March is 3, etc. The next to last digit determines the year (odd-numbered year or even numbered year). For example, DOT number 1234567 files their biennial update in July (7) of every even year (6). Contact us today to see if you’re due.

Does the Biennial Update cost money to file?

While you can file your Biennial Update yourself for no cost through FMCSA. The process can often be confusing and time-consuming. Our team can handle your filing for you, simplifying the process for you.

Do intrastate carriers need to file the update?

Yes, even if carriers stay within state lines, a biennial update is still needed for their USDOT number.

What happens if I miss my filing deadline?

  • Failure to complete biennial update to FMCSA can be subject to fines with a maximum penalty of $10,000. If your update is past due, you can still file it to restore your compliance status. Contact us today to file your form! https://dotcompliancegroup.com/bu-update/ 

What are the new FMCSA rules in 2025?

  1. Civil Penalty Amount Increases
  2. Drug & Alcohol Clearinghouse Becomes Exclusive Source for checking driver history.
  3. ELD Technology Required
  4. SMS (Safety Measurement System) Modernization
  5. Crash Preventability Determination Program Expanded

When do the 2025 FMCSA regulations take effect?

The confirmed dates these regulations take effect is May 30, June 23, October 1, 2025.

How can trucking companies prepare for these changes?

Regularly reviewing your Safety Measurement System (SMS) scores and maintaining personal checklists for inspections, driver qualification files, and drug and alcohol testing helps catch issues before they affect audits. Partnering with DOT Compliance Group streamlines filings, reporting, and ongoing monitoring, taking the guesswork out of FMCSA regulations and keeping your operation audit-ready year-round.

What Triggers a DOT Compliance Review?

A DOT compliance review is triggered when FMCSA wants to ensure a carrier is following safety regulations. Common triggers include high SMS safety scores, a history of crashes or violations, and previous noncompliance. Staying proactive with accurate records, driver files, and regular internal audits helps reduce the likelihood of a review.

Where can I get help with FMCSA filings?

DOT Compliance Group can assist with any help or questions you may have about FMCSA filings. Call 972-476-9962.

How long are violations kept on record?

According to the Clearinghouse rules, drug and alcohol violations remain in the FMCSA Clearinghouse for five years, provided all requirements (such as completing the return‑to‑duty process) have been met before that period ends.

What if an employer makes a mistake in reporting?

In practice, correcting an employer reporting error typically involves identifying the mistake in the database and then submitting a request for correction through the Clearinghouse portal or FMCSA procedures, so the record reflects accurate information. 

What are the penalties for non-compliance?

FMCSA rules allow civil penalties for non‑compliance, and separate authorities note that employers who fail to meet Clearinghouse requirements may face civil fines or criminal penalties under federal regulations.

Do trucking companies check the Clearinghouse?

Yes — trucking companies check the Clearinghouse as part of their hiring and compliance process. The FMCSA Clearinghouse is designed so employers can search a driver’s drug and alcohol violation records before permitting them to operate a commercial vehicle. Employers are required to conduct these queries for both prospective and current drivers as part of compliance.

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