- I need help with my quarterly return. Who can I talk to?
For assistance you can call our office at 517-636-4580, Monday through Friday from 8:00 A.M. through 4:45 P.M. You may also fax your request to us at 517-636-4593 or send your correspondence to:
Michigan Department of Treasury
Special Taxes Division, IFTA Unit
P.O. Box 30474
Lansing, MI 48909-7974
- Do I have to file the quarterly IFTA fuel tax returns?
Yes. If you are licensed for IFTA, a quarterly return must be filed even if you had no activity for the quarter.
In order to complete the IFTA return you must maintain records of all fuel purchases and miles driven in each IFTA jurisdiction for the quarter. Failure to keep adequate records may result in disallowed credits and your fleet average MPG may be reduced to 4.0 as permitted under the IFTA Agreement.
The quarterly returns are due on April 30, July 31, October 31 and January 31 of each year. Failure to file the required quarterly returns will result in the Department issuing computed assessments against your account. If you have not received your quarterly return two weeks prior to the due date, call us at 517-636-4580, or view the blank forms.
- Am I subject to interest or penalties if I fail to timely file an IFTA fuel tax return?
Yes. The IFTA Articles of Agreement provide for a late payment penalty in the amount of $50 or 10 percent of the tax due, whichever is greater.
Interest is charged according to the IFTA Articles of Agreement which is currently at 0.42% (0.0042) per month or portion of a month. The annual rate is 5%. Interest is not charged on the net amount of tax due on the return but is calculated on the amount of tax due to each jurisdiction. In some cases the interest due can be greater than the net amount of tax due.
- My vehicle is leased to another company. Do I need to file a quarterly return?
The Motor Carrier Tax Act specifically references lease agreements.
See MCL 207-218.
If you have a current IFTA fuel tax license, you must file the quarterly returns reporting all of the mileage and fuel purchases which occurred under your IFTA credentials. You must file a return even if you had no activity under your license but operated under a lease agreement where IFTA taxes were reported and paid on your behalf by the lessor. In this case, you would send a copy of your lease agreement and file No Operations if the lessor is filing your mileage and fuel purchases on your behalf. Three quarters of ineligible travel may result in the cancellation or non-renewal of your license.
If you enter into a lease agreement and the lessor provides you with fuel decals, issued in their name, and they have exclusive use of your equipment, they are to include your activity and fuel purchases on their fuel tax reports until the lease is terminated. Under this scenario, we strongly advise motor carrier lessees to cancel their IFTA fuel tax license. By doing this you will avoid many of the problems associated with delinquent returns and computed assessments. The Department may require you to supply a copy of the lease, copy of the lessors IFTA License, and the decal sequence number they supplied to you.
Protect yourself! Review all lease contracts carefully and ensure the IFTA tax reporting responsibility is clearly defined.
It is important to remember that Michigan statute holds the lessor and lessee jointly and severally liable for any fuel tax liabilities that occur during the term of their lease.
- I have an IFTA decal. How do I get the latest tax rates for the jurisdictions that I travel in?
- Does registering for IFTA eliminate all other jurisdictions' tax requirements?
No. It is your obligation to be aware of each jurisdiction's fuel and vehicle regulations as well as any additional tax requirements. Links to other jurisdictions can be found on the IFTA, Inc. web site at www.iftach.org.