J. J. Keller® Compliance Network Logo
Start Customizing Your Profile for Free!
Update to Professional Trial!

Experience Everything Compliance Network Has to Offer

Already have an account?
Thank you for investing in EnvironmentalHazmat related content. Click 'UPGRADE' to continue.
Enjoy your limited-time access to the Compliance Network Professional Trial!
A confirmation welcome email has been sent to your email address from ComplianceNetwork@t.jjkellercompliancenetwork.com. Please check your spam/junk folder if you can't find it in your inbox.
Thank you for your interest in EnvironmentalHazmat related content.
You've reached your limit of free access, if you'd like more info, please contact us at 800-327-6868.

With renewal time upon us, now might be a good time to reconsider your fuel tax account. This is especially true if your trucks haven’t left the state in a while.

Renewal may be denied

Under the International Fuel Tax Agreement (IFTA), jurisdictions may cancel or deny renewal of an IFTA license to a carrier that:

  • Does not leave the base jurisdiction, and
  • Reports zero distance or only base jurisdiction distance.

This action can come after only three consecutive quarters of no interstate activity.

How to cancel your IFTA account

If your trucks won’t be operating interstate for a while, it might make sense to cancel your fuel tax account. Time saved by eliminating recordkeeping and reporting could be significant. And temporary fuel tax permits would remain an option for the occasional out-of-state trip that might arise.

Steps to cancel your account vary by state, but may include:

  • Filing your quarterly tax report for the last operational quarter,
  • Marking your request for cancellation and the date of closure on your final tax report,
  • Submitting a written request for cancellation, and/or
  • Returning your license and any unused decals.

Failure to submit a cancellation request in a timely manner could result in your account remaining active and quarterly tax returns due or estimated tax bills being issued.

Even though you cancel your license, keep all records for a period of four years from the due date of your final tax return or the date filed, whichever is later. Any IFTA jurisdiction may conduct a final audit once your license has been canceled.

Reinstating your IFTA license

Once your account is canceled, the base jurisdiction may require proof of out-of-jurisdiction travel prior to allowing you to get licensed again under the program. That proof may include:

  • Out-of-jurisdiction fuel permits purchased, and/or
  • Amended IFTA returns showing actual distance traveled during a quarter already filed.

The jurisdiction may also check to ensure that:

  • All tax returns have been filed;
  • All motor fuels use taxes, penalties, and interest due have been paid; and
  • The applicant is in compliance with the base jurisdiction’s laws.

Key to remember: Jurisdictions may cancel IFTA accounts (or deny renewal) after only three consecutive quarters with no interstate travel. Check to be sure that your account status reflects your current operations.