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COMPLETING AN IFTA TAX RETURN

COMPLETING AN IFTA TAX RETURN. Revised 8/06. OVERVIEW. Completing the IFTA Return Appropriate rounding on the IFTA Return Surcharge Jurisdictions and how to calculate surcharge Penalties and Interest Important Reminders Taxpayer Assistance. BEFORE YOU START.

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COMPLETING AN IFTA TAX RETURN

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  1. COMPLETING AN IFTA TAX RETURN Revised 8/06

  2. OVERVIEW • Completing the IFTA Return • Appropriate rounding on the IFTA Return • Surcharge Jurisdictions and how to calculate surcharge • Penalties and Interest • Important Reminders • Taxpayer Assistance

  3. BEFORE YOU START • Records of all miles traveled in each jurisdiction • Fuel receipts for all jurisdictions traveled • IFTA Tax Return (Gas-1276 IFTA) • IFTA Return Instructions (Gas-1276 IFTA-I) • Fuel Tax Rate Sheet for the appropriate quarter (Gas-1278)

  4. IFTA FILING INSTRUCTIONS – PAGE 1 Legal name as shown on IFTA License Mailing Address City State ZIP NC890000001IF 3/31/06 Name and Address: If your return has a pre-addressed label, verify that all information on the label is correct. Make any changes necessary on the form. If you do not have a pre-addressed label be sure to include the company name, mailing address, city, state, and zip code.

  5. IFTA FILING INSTRUCTIONS – PAGE 1 9/30/06 Legal name as shown on IFTA License Mailing Address City State ZIP NC890000001IF 930/06 Close Account: If your business is no longer operating and you wish to close your account, fill in the applicable circle and enter the effective date for closing the account.

  6. IFTA FILING INSTRUCTIONS – PAGE 1 Legal name as shown on IFTA License Mailing Address City State ZIP 8 9 0 0 0 0 0 0 1 Account Number: If your account number is not included on a pre-addressed mailing label, enter the account number in the space provided. Your account number will be a 9 digit number and will begin with 89.

  7. IFTA FILING INSTRUCTIONS – PAGE 1 Legal name as shown on IFTA License Mailing Address City State ZIP NC890000001IF 9/30/06 8 9 0 0 0 0 0 0 1 Account Number: If your account number has changed, please note the change in the space “Account Number” and attach an explanation for the change. Do not draw a line through the account number printed on the label.

  8. IFTA FILING INSTRUCTIONS – PAGE 1 Legal name as shown on IFTA License Mailing Address City State ZIP NC890000001IF 9/30/06 2 0 0 6 Return Period: Fill in the applicable circle for the quarter that represents the period being filed. Enter the 4-digit number that represents the year of the filing period.

  9. IFTA FILING INSTRUCTIONS – PAGE 1 Legal name as shown on IFTA License Mailing Address City State ZIP NC890000001IF 9/30/06 2 0 0 6 X No Operations: If you did not have any operations in any jurisdictions during the reporting period, place an “X” in the box on Line 1. A return must be filed even if you do not operate in any jurisdiction during the period.

  10. IFTA FILING INSTRUCTIONS – PAGE 1 AMENDED Legal name as shown on IFTA License Mailing Address City State ZIP 8 9 0 0 0 0 0 0 1 9/30/06 X Amended Return: If you are amending a previously filed return, indicate the period to be amended. Also, mark the return as “AMENDED” at the top of the return.

  11. IFTA FILING INSTRUCTIONS – PAGE 2 Schedule A TOTAL MILES ALL JURISDICTIONS: Beside each applicable fuel type, enter the total miles traveled by all qualified vehicles using that fuel type. TOTAL FUEL ALL JURISDICTIONS: Beside the appropriate fuel type line, enter the total gallons of fuel purchased for each applicable fuel type.

  12. IFTA FILING INSTRUCTIONS – PAGE 2 Schedule A TOTAL MILES AND FUEL ALL JURISDICTIONS: If all of your operations are within the State of North Carolina, and your vehicles display IFTA decals, you must report all miles and fuel on the tax return. You may not file a “No Operations” return due to not traveling outside of North Carolina.

  13. IFTA FILING INSTRUCTIONS – PAGE 2 Schedule A AVERAGE MILES PER GALLON: Divide the total miles for each fuel type by the total gallons of fuel purchased for that fuel type. Enter the average miles per gallon. Round the MPG to 2 decimal places – Example: (0.00) (TOTAL MILES / TOTAL GALLONS = MPG)

  14. IFTA FILING INSTRUCTIONS – PAGES 2-4 Schedule B IFTA MEMBER JURISDICTION: List all member jurisdictions, in alphabetical order, in which you operated during the period. (VA SC = Virginia Surcharge)

  15. IFTA FILING INSTRUCTIONS - PAGES 2-4 Schedule B FUEL TYPES: Indicate the fuel types for each jurisdiction listed. If more than one fuel type is used in any jurisdiction, a separate line must be used for each fuel type.

  16. IFTA FILING INSTRUCTIONS – PAGES 2-4 Schedule B DI VA SC TOTAL MEMBER JURISDICTION MILES: Enter the total miles traveled for each jurisdiction, for each fuel type. You must include taxable and non-taxable miles.

  17. IFTA FILING INSTRUCTIONS – PAGES 2-4 Schedule B DI VA SC TOTAL MEMBER JURISDICTION MILES: Schedule B, Column “B”, should equal Schedule A, Total Miles All Jurisdictions; unless you have operations in Non-IFTA jurisdictions that are not shown on the return; i.e. DC mileage.

  18. IFTA FILING INSTRUCTIONS – PAGES 2-4 Schedule B SURCHARGES: Some jurisdictions have a surcharge. This is a separate tax in addition to the fuel tax. The surcharge is based on taxable gallons. Enter –0– on the Surcharge row for Total Member Jurisdiction Miles.

  19. IFTA FILING INSTRUCTIONS – PAGES 2-4 Schedule B SURCHARGES: Jurisdictions having a surcharge are listed twice on the IFTA Tax Rate Sheet and are noted “SurChg”. These jurisdictions should be listed on the return just as they appear on the tax rate sheet. The following jurisdictions have a surcharge: Indiana, Kentucky, and Virginia.

  20. IFTA FILING INSTRUCTIONS – PAGES 2-4 Schedule B TAXABLE MILES: Enter the total taxable miles traveled for each jurisdiction by fuel type. Miles traveled in all IFTA jurisdictions while operating under an IFTA Temporary Permit are taxable. Enter –0– on the surcharge row for Taxable Miles.

  21. IFTA FILING INSTRUCTIONS – PAGES 2-4 Schedule B EXEMPT MILES: Some jurisdictions allow exempt miles. If exempt miles are claimed, provide an explanation for each exemption taken on the return.

  22. IFTA FILING INSTRUCTIONS – PAGES 2-4 Schedule B EXEMPT MILES: It is your responsibility to contact jurisdictions, individually, to determine exempt miles. It is also your responsibility to maintain records of exemptions for future review.

  23. IFTA FILING INSTRUCTIONS – PAGES 2-4 Schedule B TAXABLE GALLONS: Enter the total taxable gallons of fuel consumed for each jurisdiction and fuel type.

  24. IFTA FILING INSTRUCTIONS – PAGES 2-4 Schedule A Schedule B TAXABLE GALLONS: To determine this figure, divide Taxable Miles (Column C) by the average MPG calculated for that fuel type in Schedule A. (772 / 4.05 = 191) For jurisdictions with surcharge, the Taxable Gallons should be the same for both lines.

  25. IFTA FILING INSTRUCTIONS – PAGES 2-4 Schedule B TAX-PAID GALLONS: Enter the gallons of tax-paid fuel purchased for each fuel type. Include fuel purchased at the retail pump and withdrawals from bulk storage. Enter –0– on the surcharge row for Tax-paid Gallons. Do not include NON-TAX-PAID purchases.

  26. IFTA FILING INSTRUCTIONS – PAGES 2-4 Schedule B TAX-PAID GALLONS: If a jurisdiction has a surcharge, the surcharge amount is owed on all the gallons you consume in that jurisdiction. Surcharge is always a tax due. You do not receive a credit for surcharge on Tax-paid Gallons.

  27. IFTA FILING INSTRUCTIONS – PAGES 2-4 Schedule B TAX-PAID GALLONS: Include fuel purchased while operating under a North Carolina IFTA Temporary Permit or North Carolina Temporary Trip Permit. For fuel purchased while operating under another jurisdiction’s temporary permit, contact that jurisdiction for reporting requirements.

  28. IFTA FILING INSTRUCTIONS – PAGES 2-4 Schedule B NET TAXABLE OR (CREDIT) GALLONS: Net taxable or (Credit) gallons represent the difference between taxable gallons and Tax-paid Gallons. To calculate this figure, subtract Column E from Column D. ( 191 – 110 = 81)

  29. IFTA FILING INSTRUCTIONS – PAGES 2-4 Schedule B NET TAXABLE OR (CREDIT) GALLONS: If Column D is greater than Column E, you will owe additional tax. If Column D is less than Column E, you are due a credit. Identify this credit with a minus sign ( - ) or brackets.

  30. IFTA FILING INSTRUCTIONS – PAGES 2-4 Schedule B NET TAXABLE OR (CREDIT) GALLONS: If a jurisdiction has a surcharge, the surcharge amount will be the same figure as entered on the surcharge line from Column D.

  31. IFTA FILING INSTRUCTIONS – PAGES 2-4 Schedule B TAX RATE: For each jurisdiction listed on your return, enter the tax rate indicated on the tax rate sheet (Gas-1278) for each applicable fuel type and surcharge. The tax rate sheet changes every quarter so you need to make sure that you have the correct tax rate sheet for the filing period.

  32. IFTA FILING INSTRUCTIONS – PAGES 2-4 Schedule B TAX OR (CREDIT): Multiply the figure in Column F by the tax rate reported in Column G. Enter the results on each line in Column H. If the figure in Column F is positive then additional tax is due. If the figure in Column F is negative then a credit is due and should be represented with a minus sign or in brackets.

  33. IFTA FILING INSTRUCTIONS – PAGES 2-4 Schedule B INTEREST: If you file your return late, you must calculate interest for each jurisdiction that is owed additional tax. Calculate the interest by multiplying Column H by one percent (1%) for each month that the return is late. A partial month is charged a full month’s interest.

  34. IFTA FILING INSTRUCTIONS – PAGES 2-4 Schedule B INTEREST: Interest is not calculated for (Credits).

  35. IFTA FILING INSTRUCTIONS – PAGES 2-4 Schedule B INTEREST: To calculate the interest for jurisdictions with a surcharge, add the surcharge due to any tax(credit) due. If the net figure is a (Credit), as above, then no interest is due.

  36. IFTA FILING INSTRUCTIONS – PAGES 2-4 Schedule B INTEREST: If the net figure is a tax liability, as above, then interest is calculated on the net liability and recorded on the tax due line as noted with the arrow .

  37. IFTA FILING INSTRUCTIONS – PAGES 2-4 Schedule B TOTAL TAX OR (CREDIT) DUE: Add the totals of Columns H and I for each jurisdiction listed. Record those totals in Column J.

  38. IFTA FILING INSTRUCTIONS – PAGES 2-4 Schedule B SUBTOTALS: Calculate the subtotals for each column, on each page, by adding each vertical column. Enter the results in the space entitled “Subtotals Page X”, along the bottom of each page.

  39. IFTA FILING INSTRUCTIONS – PAGES 2-4 Schedule B SUBTOTALS : Do not include the taxable gallons entered for surcharges when adding Columns D and F when calculating subtotals.

  40. IFTA FILING INSTRUCTIONS – PAGE 1 TAX OR (CREDIT) CALCULATIONS: Bring the subtotals for Columns B, C, D, E, F, H, and I from Pages 2, 3, and 4 to the front of the tax return to Lines 3, 4, and 5 respectively.

  41. IFTA FILING INSTRUCTIONS – PAGE 1 TAX OR (CREDIT) CALCULATIONS: Enter the total amounts for Line 6 for each column by adding Lines 3, 4, and 5.

  42. IFTA FILING INSTRUCTIONS – PAGE 1 TAX/(CREDIT) DUE: Enter the total from Line 6, Column H.

  43. IFTA FILING INSTRUCTIONS – PAGE 1 PREVIOUS (CREDIT) AVAILABLE: You may apply any unused North Carolina credit that has not been previously refunded. Available credits would generally be for an amount less than $3.00 as credits over $3.00 have been automatically refunded by the Department.

  44. IFTA FILING INSTRUCTIONS RETURN DUE DATE: Returns are due on the last day of the month following the close of each quarter. RETURN PERIODDUE DATE January – March April 30 April – June July 31 July – September October 31 October – December January 31 RETURN RECEIVED DATE: The Department uses the postmark date stamped by the U.S. Post Office to determine if your return is on time. If you use a postage meter to stamp your mail the Department will use the meter stamp so long as the Post Office does not also postmark the envelope.

  45. IFTA FILING INSTRUCTIONS – PAGE 1 PENALTIES DUE: Penalty for Late Filing: The penalty for late filing of the return is $50.00. Penalty for Late Payment: The penalty for a return that is filed late and has a tax due is $50.00, or 10% of the tax due, whichever is greater.

  46. IFTA FILING INSTRUCTIONS – PAGE 1 PENALTIES DUE: Penalty for Underpayment of Tax Due: The penalty for a return that is underpaid is $50.00, or 10% of the tax due, whichever is greater.

  47. IFTA FILING INSTRUCTIONS – PAGE 1 INTEREST DUE: Enter the total from Line 6, Column I.

  48. IFTA FILING INSTRUCTIONS – PAGE 1 TOTAL BALANCE DUE: Add Lines 7, 9, and 10, then subtract Line 8. If tax is due, send the return along with your payment for the amount of the tax, penalty, and interest due to the North Carolina Department of Revenue, Motor Fuels Tax Division, P.O. Box 25000, Raleigh, NC 27640-0950.

  49. IFTA FILING INSTRUCTIONS – PAGE 1 PAYMENT: Make all checks or money orders payable to: NC DEPARTMENT OF REVENUE NOTE: While most Revenue field locations accept cash, our location at 1429 Rock Quarry Road, Raleigh, NC can only accept checks or money orders.

  50. IFTA FILING INSTRUCTIONS – PAGE 1 TOTAL (CREDIT) DUE: If you are due a refund, send the return to the North Carolina Department of Revenue, Motor Fuels Tax Division, P.O. Box 25000, Raleigh, NC 27640-0950.

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