IFTA ALERT: CT to Truckers: Send More Money . . .

IFTA decals

Hartford, CT— Hundreds of trucking companies should expect to receive a notice in the mail for additional money for their IFTA registrations.

Notices will be sent out by Xerox State & Local Solutions, a contractor for the DMV, to trucking companies in 13 states. Payment is due within 30 days.

The fees are due to an under-billing error made by Xerox, and span the years from 2008 and 2014 according to the Facebook page of the Register Citizen.

Earlier this year another glitch by the Connecticut DMV resulted in a number of citizens having their registrations suspended. The DMV apologized for that error.

Connecticut has earned a reputation as being the toughest state on truckers with the most violations per inspection and the fewest “clean inspections” in North America (only 15% versus 39.5% nationally according to an Overdive investigation).

What is IFTA?

International Fuel Tax Agreement (IFTA) is a way for vehicle operators to pay their base state for all the fuel taxes owed to those jurisdictions where they operate (states or provinces). The base state then distributes the taxes to the others on their behalf.

This means if you are not buying fuel in a state or province, but instead consuming fuel from another state or province, you will owe the difference in fuel taxes. Best practice is to keep fuel purchases and fuel consumption equal in each state or province for each calendar quarter of the year. This is not always easy or possible to do.

IFTA auditors check that carriers accurately report the miles traveled and fuel purchased in all jurisdictions in order to verify or reconcile the fuel taxes owed for those operations. About 3% of motor carriers with IFTA decals are audited each year. Specific records must be kept for each trip.

If your company trucks do not have IFTA decals on the cab, then these undercharge fees will not apply to your company.

Thank you for reading this.


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