To complete the International Fuel Tax Agreement quarterly report, note by jurisdiction all miles traveled, the total taxable miles, the amount of taxable fuel purchased and the amount of taxable fuel consumed, according to the Owner-Operator Independent Drivers Association. Prior to entering the taxable miles by jurisdiction, subtract non-taxed fuel trip permit miles and any other tax exceptions, such as jurisdiction-specific toll and off-highway exemptions, from total miles traveled.
Divide the total taxable miles by miles per gallon to obtain the total taxable gallons. You must also total and report fuel purchase receipts by state, since the difference between the amount of fuel you purchased and the amount that you used equals the net taxable gallons for each jurisdiction. If the former is greater, then you earn a credit; if the consumed amount is more than the purchased amount, you must pay a tax, according to the Owner-Operator Independent Drivers Association.
Multiplying the net taxable gallons by each jurisdiction's tax rate provides the amount of tax or credit due. You must provide detailed fuel purchase receipts with your quarterly report when you are due a refund or credit, indicates TruckingOffice. Tax rates vary by jurisdiction and may change each quarter, so contact your base jurisdiction to confirm quarterly tax rates and to receive the International Fuel Tax Agreement tax report form.
You must maintain records that support all information you provide on the International Fuel Tax Agreement quarterly report, along with trip dates, routes and all fuel receipts, for four years, according to the Owner-Operator Independent Drivers Association.