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Utah State Tax Commission

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International Fuel Tax Agreement (IFTA)/Utah Special Fuel User

Section 5 – Exercises

Exercise 1

General Information

This exercise uses a simulated Utah-based company located in St. George. The company has IFTA qualified vehicles (diesel only), with no off-highway miles, PTO, or bulk fuel storage. The following information was obtained from drivers trip reports, and fuel records for the first quarter of 2005:

Jurisdiction	Total Miles in Jurisdiction	Fuel Tax Paid Gallons
CA	20,725	2,385
ID	10,235	0
NV	12,091	921
UT	75,093	17,019

The first three sections of the IFTA/ Special Fuel User Tax Return, Form TC-922 are the tax period, due date, and account number. The information for these sections and the business address are preprinted on the return. This exercise will cover the steps necessary to complete sections 4 through 13 of the return.

The following IFTA Trip Worksheet was created as a training tool for organizing essential information needed to complete the Utah State Tax Commission's IFTA/Special Fuel User Tax Return, Form TC-922. A blank worksheet is available for your personal use or you may wish to create one of your own. The information shown in this view of the worksheet contains information taken and compiled directly from the simulated company's drivers trip reports. The rates for each jurisdiction (state or province) are provided with the quarterly IFTA/Special Fuel Tax Return. Check the rates each quarter, there are frequent changes. You may also find the rates on the IFTA web page at: http://www.iftach.org/taxmatrix/choose_table.asp

(Items in red are referenced later in this file.)

IFTA Trip Worksheet
Jurisdiction	Fuel Type	Rate	Total Miles In Jurisdiction	Taxable miles in Jurisdiction	Taxable Gallons	Fuel Tax Paid Gallons	Net Taxable Gallons	Tax
CA	D	0.295	20,725	20,725		2,385
ID	D	0.250	10,235	10,235		0
NV	D	0.270	12,091	12,091		921
UT	D	0.245	75,093	75,093		17,019

Total			118,144	118,144		20,325

Accurate collection and documentation of this information is essential.

When the worksheet is completed the information can be transferred directly to your IFTA/Special Fuel User tax return.

Important things to remember:

For this exercise taxable Miles in Jurisdiction are the same as the Total Miles Traveled in Jurisdiction. These figures come from driver trip reports. Remember drivers must report actual miles driven, not road atlas miles. In exercise three you will learn about off-road miles traveled in Utah and how they impact upon your calculations.
The Fuel Tax-Paid Gallons are the gallons of fuel purchased at service stations. In exercises two and three you will learn more about other fuel purchases that will affect this entry.

Step One

When you finish entering the data from the driver trip reports and fuel records, and have a total for each column of data, you are ready to start the first step in completing the worksheet. This step is the calculation of the Average Fleet Miles Per Gallon (MPG) in the Fuel Summary chart below, which is a duplicate of section 4 on the fuel tax return, form TC-922. Use section 4 of your return to do this calculation. This is a critical step since an accurate MPG calculation is needed to complete the worksheet and your return:

Enter the total miles traveled in all jurisdictions from the worksheet (118,144) on the line for diesel in column b, Total miles traveled for all jurisdictions.
Then enter the total fuel tax-paid gallons (20,325) on the diesel line in column c, Total gallons used for all jurisdictions.

Fuel Summary (For Qualified Vehicles)

Fuel Type	Total miles traveled for all jurisdictions	Total gallons used for all jurisdictions	Average Fleet MPG (2 decimal places)
D-Diesel	118,144	÷ 20,325	= 5.81
UF-Special Fuel User		÷	=
Other:		÷	=
Totals	118,144	20,325

Important things to remember:

For this exercise the total gallons used for all jurisdictions is the sum of all tax-paid gallons purchased from service stations. Total gallons used for all jurisdictions must agree with the total fuel tax-paid gallons on the worksheet. You will learn more about this calculation in exercise two.
Calculate Miles Per Gallon to three (3) decimal places and round the answer to two (2) decimal places. For our example 118,144 divided by 20,325 = 5.813 rounded to two decimal places 5.81 MPG.
When the MPG has been calculated, the remaining columns on the worksheet can be completed. Make sure the MPG calculation is correct. It is the basis for all calculations on the worksheet and the return.

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Step Two

The second step is the calculation of taxable gallons and net taxable gallons for each jurisdiction.

Taxable gallons for each jurisdiction is determined by dividing taxable miles in a jurisdiction by the MPG (5.81). California's taxable gallons is 3,567.

20,725 ÷ 5.81 = 3,567

Once the taxable gallons have been determined for each jurisdiction, the net taxable gallons for each jurisdiction can be calculated. The net taxable gallons for each jurisdiction is determined by subtracting fuel tax-paid gallons from taxable gallons.

The net taxable gallons calculation for California is :

3,567 - 2,385 = 1,182

When all calculations have been completed for each jurisdiction the IFTA Trip Worksheet should look like the following example. The columns on the worksheet correspond to columns a through h in block 5 on the IFTA/Special Fuel User Tax Return, Form TC-922:

IFTA Trip Worksheet
Jurisdiction	Fuel type	Rate	Total miles in jurisdiction	Taxable miles in jurisdiction	Taxable gallons	Fuel tax paid gallons	Net taxable gallons
CA	D	0.295	20,725	20,725	3,567	2,385	1,182
ID	D	0.250	10,235	10,235	1,762		1,762
NV	D	0.270	12,091	12,091	2,081	921	1,160
UT	D	0.245	75,093	75,093	12,925	17,019	(4,094)

Total			118,144	118,144	20,335	20,325	10

Important things to remember:

The total net taxable gallons should be zero, or close to zero (rounding can result in a slight difference). If the total net gallons are greater than zero, there may be problems with the calculations or, one or more of the following three factors may cause the difference. These three factors, will be introduced in exercises two and three and are only mentioned here for your information:

Bulk fuel was used
The fleet had off-highway miles or 96-hour permits
Surcharge gallons apply

For this exercise the total net gallons is 10. Rounding caused a number other than zero. The 10 gallon difference is acceptable. In exercise two and three you will learn how bulk fuel, off-highway miles, and surcharge gallons affect this calculation.

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Step Three

When you have completed the worksheet, the information is transferred directly to section 5, columns a through h on your IFTA/Special Fuel User Tax Return.

Section 5 of the return is where the computation is made for a credit or the tax due for IFTA qualified vehicles. To complete the return, three additional calculations need to be completed: column i (Tax due or (credit ), column j (Interest due), and column k (Total due or (credit)).

5. IFTA Fuel Tax and Utah Special Fuel Tax (round to the nearest whole gallons and miles)
a Jurisdiction	b Fuel type see back	c Tax rate	d Total miles in Juris.	e Taxable miles in Juris.	f Taxable Gallons	g Fuel tax-paid gallons	h Net taxable gallons (f minus g)	i Tax due or (credit)	j Interest due	k Total due or (credit) (i plus j)
CA	D	0.295	20,725	20,725	3,567	2,385	1,182	348.69		348.69
ID	D	0.250	10,235	10,235	1,762		1,762	440.50		440.50
NV	D	0.270	12,091	12,091	2,081	921	1,160	313.20		313.20
UT	D	0.245	75,093	75,093	12,925	17,019	(4,094)	(1,003.03)		(1,003.03)


6. Miles for all other Jurisdictions			0
7. Total all pages (columns d thru k)			118,144	118,144	20,335	20,325	10	99.36		99.36

To calculate tax due or credit for each jurisdiction, multiply the net taxable gallons (column h), by the tax rate (column c).

For example: California tax due is $1,182 x 0.2953 = $348.69

The return is filed and paid timely, so there is no interest. The total due for each jurisdiction (column k) is the same as the tax due or credit.

The IFTA/Special Fuel User Tax Return only has 14 lines. If your fleet travels in more than 14 jurisdictions you will need to use the IFTA and Special Fuel User Tax Return Continued, form TC-922. If you use multiple sheets remember that section 7, Total all pages is the sum of the totals all pages.

Important things to remember:

Column d, section 6. Miles for all other states applies only to miles traveled in Alaska, Mexico, the Yukon, Northwest Territories, the District of Columbia, or Hawaii otherwise enter zero. These jurisdictions have not joined IFTA. The total miles for all pages in column d, must agree with the total miles traveled all jurisdictions in section 4, Fuel Summary (for qualified vehicles).
Column e. Taxable miles is the total miles driven in a jurisdiction. In exercise three you will learn how off-road miles affect this calculation.
Column g. The total tax-paid gallons must equal the total gallons used in section 4, Fuel Summary (for qualified vehicles) on the fuel tax return.

When you finish calculating the information for each jurisdiction (columns d through k), total each column (remember: if you have more than one page of jurisdictions this is the total of all pages). The Total all pages for column k, Total tax due or (credit) is $99.36.

Section 8. If your fleet was inactive for the reporting period, check the box for NO OPERATION. This section may also be used to cancel your IFTA license.

Sections 9 through 12. These sections do not apply for this exercise.

Section 13. The total balance due or credit is also $99.36.

8. __Check box if NO OPERATION this period __ CANCEL IFTA License (Cancel date: ______________) Mail to: Utah State Tax Commission 210 N 1950 W Salt Lake City, Utah 84134		9. Sales tax due or (credit) attach TC-922A
		10. Credit for tax reported on exempt fuel-attach TC-922B
		11. Previous payments (for amended returns only)
		12. Penalty 10% or $50 (see instructions)
		13. Total balance due or (credit)			99	36
I certify under penalties of perjury, that this report is true, correct, and complete to the best of my knowledge.
Signature	Title		date	telephone

Make sure the return is signed and dated.

Click here to see the completed return for exercise 1.

A blank IFTA Trip Worksheet is available for your use.

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Exercise 2

General Information

This exercise builds upon the information from the simulated Utah based company in exercise 1. The following information is summarized from exercise 1:

Jurisdiction	Total Miles in Jurisdiction	Fuel Tax Paid Gallons
CA	20,725	2,385
ID	10,235	0
NV	12,091	921
UT	75,093	17,019

The tax period for this quarterly return is the first quarter of 2005. The quarterly activity for the fleet for exercise two is a combination of data from exercise one that is shown above and these new variables:

Jurisdiction	Total Miles in Jurisdiction	Fuel Tax Paid Gallons	Prior Return Ending Bal Bulk Fuel	Bulk Fuel Purchased	Bulk Fuel Dispensed
AZ	18,075	0
OR	12,875	2,480
IN	13,670	2,353
UT			1,100	2,400	2,875
Fuel invoices excluding state and federal excise taxes totaled $37,867

There were no off-highway miles or PTO units.

The introduction of bulk fuel into this exercise requires the completion of Schedule A, Bulk Fuel Reporting and Sales Tax Due on Undyed Diesel Fuel (form TC-922A).

Fuel purchases need to be separated into Utah and other jurisdiction purchases, then into service station and bulk fuel purchases.

In exercise one bulk fuel was not a factor and information from fuel invoices, and driver trip reports was entered directly onto an IFTA trip worksheet. We will still enter data for this exercise on an IFTA Trip Worksheet. However, the Utah Fuel tax-paid gallons must include Utah bulk fuel that was used and must agree with the total undyed fuel dispensed in Utah as shown on Part B, Schedule A, line 7. Consequently, we need to complete a form TC-922A and transfer the amount of undyed fuel dispensed into the Utah fleet..

Enter the 1,100 gallons of bulk fuel inventory from the prior reporting period on line 1.
The 2,400 gallons of new bulk fuel purchases for the reporting period are entered on line 2.
The ending bulk fuel inventory for the period, 625 gallons is entered on line 3.
The total undyed bulk fuel dispensed from inventory in Utah (line 4) is determined by subtracting line 3 from the sum of bulk fuel from lines 1 and 2, which is 2,875 gallons.
The 17,019 total gallons of undyed diesel fuel purchased from Utah service stations are entered on line 5.
The total undyed diesel fuel used by the fleet for the reporting period is the sum of lines 4 and 5 or 19,894 gallons.

The completed Part A of Schedule A for this exercise is shown below.

Part A - Calculate Undyed Diesel Fuel Dispensed	(a) Utah Gallons	(b) Non-Utah Gallons	(c) Total Gallons
1. Beginning undyed bulk fuel inventory	1100		1100
2. Undyed fuel purchased in bulk	2400		2400
3. Ending undyed bulk fuel inventory	625		625
4. Undyed bulk fuel dispensed from inventory (add lines 1 and 2, subtract line 3)	2875		2875
5. Undyed fuel purchased at service stations (non-bulk)	17019	8139	25158
6. Total undyed fuel dispensed (add lines 4 and 5)	19894	8139	28033

Click here to view the entire completed Schedule A.

The 19,894 tax-paid gallons from line 6 will be entered on line 7 Part B - Categorized Undyed Diesel Fuel Dispensed and on the Utah line of the following IFTA Trip Worksheet in the fuel tax-paid gallons column (the worksheet columns are the same as the columns on the fuel tax return).

Part B- Categorized Undyed Diesel Fuel Dispensed	(a) Utah Gallons	(b) Non-Utah Gallons	(c) Total Gallons
7. Total undyed fuel dispensed into Utah IFTA fleet	19,894	8,139	28,033
8. Total undyed fuel dispensed into Utah Special Fuel User Fleet		NA
9. Total undyed fuel dispensed into machinery, reefers, etc.
10. Sales of undyed fuel to third parties and other adjustments (attach explanation)
11. Total undyed fuel dispensed (add lines 7, 8, 9, and 10) - This should equal line 6	19894	8139	28033

The IFTA Trip Worksheet was developed as a training tool for organizing information from driver trip reports and fuel purchase invoices. The organized information is needed to complete the Utah IFTA/Special Fuel User Tax Return, form TC-922. The column headings on the worksheet correspond to the same headings on the actual return. When the worksheet is completed you will transfer the data from each jurisdiction directly to your fuel tax return. A blank copy of the worksheet is available for your use, or you may create one of your own. Please note that we do not show miles traveled in jurisdictions between Utah and Indiana. This is for convenience only; the other jurisdictions would be included in an actual return.

(Items in red are referenced later in this file.)

IFTA Trip Worksheet
Jurisdiction	Fuel type	Rate	Total miles in jurisdiction	Taxable miles in jurisdiction	Taxable gallons	Fuel tax paid gallons	Net gallons
AZ	D	0.260	18,075	18,075
CA	D	0.295	20,725	20,725		2,385
ID	D	0.250	10,235	10,235
IN	D	0.160	13,670	13,670		2,353
IN	SC	0.110		13,670
NV	D	0.270	12,091	12,091		921
OR	D	0.000	12,875	12,875		2,480
UT	D	0.245	75,093	75,093		19,894

Total			162,764	176,434		28,033

Accurate collection and documentation of miles traveled in each jurisdiction and fuel purchased is critical to the successful preparation of your return..

Important things to remember:

Oregon has no tax. However, miles traveled in the jurisdiction and the gallons purchased must be included. If they are not included, the miles per gallon (MPG) calculation will be wrong.
The Utah fuel tax-paid gallons (column g) must include the gallons of bulk fuel dispensed into the tanks of vehicles in the fleet. The 2,875 gallons of bulk fuel that were dispensed in Utah must be added to the 17,019 gallons purchased at Utah service stations.
The total fuel tax paid gallons for Utah (19,894) was obtained from Schedule A, Part B, line 7 total undyed diesel fuel dispensed into Utah IFTA fleet.
Indiana has a surcharge, so an extra line has been added to the worksheet for the surcharge.

When you finish entering the data from the driver trip reports and Schedule A, Parts A and B (form TC-922A), calculate the totals for these three columns:

Total miles in jurisdiction
taxable miles in jurisdiction, and
fuel tax-paid gallons

You are now ready to start the first step in completing the worksheet. This step is the calculation of the average fleet miles per gallon (MPG). The same information is required for Section 4, Fuel Summary on the IFTA return. So use section 4 of your return to do this calculation. This is a very important calculation since the MPG is used to complete the taxable gallons and net taxable gallons columns on the worksheet which directly impact the tax due calculations on the return.

Enter the total miles traveled in all jurisdictions from the worksheet (162,764) on the line for diesel, in column b titled total miles traveled for all jurisdictions.
Next, enter the total fuel tax paid gallons (28,033) on the same line in column c, total gallons used for all jurisdictions.

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Step One

Section 4, Fuel Summary will then appear as shown below:

4. Fuel Summary (for qualified vehicles)

Fuel Type	Total miles traveled for all jurisdictions	Total gallons used for all jurisdictions	Average Fleet MPG (2 decimal places)
D-Diesel	162,764	÷ 28,033	= 5.81
UF-Special Fuel User		÷	=
Other:		÷	=
Totals	162,764	28,033

Important things to remember:

Total gallons used in all jurisdictions are determined by adding total tax-paid gallons for all jurisdictions. For this exercise the amount is 28,033 gallons. Utah bulk fuel is tax-paid gallons and any gallons dispensed into the fleet are included in Utah's fuel tax-paid gallons. The total gallons used for Utah is transferred from line 7, Part B, Schedule A. If bulk fuel is used from another state, the gallons entered into the fuel tank of the fleet must be included in that jurisdiction's tax-paid gallons or the MPG calculation will not be correct. For this example: 0 gallons of bulk fuel + 28,033 tax-paid gallons = 28,033 total gallons.
Calculate miles per gallon to three (3) decimal places, then round to two (2) decimal places. For this exercise the calculation is: 162,764 miles ÷ 28,033 tax-paid gallons = 5.806 or 5.81 MPG

Step Two

The taxable gallons for each jurisdiction can now be calculated (taxable miles in jurisdiction ÷ 5.81 MPG). To calculate taxable gallons for the Indiana surcharge, use the regular taxable gallons (2,353).

Taxable miles 13,670 ÷ 5.81 mpg = 2,353

When you have calculated the taxable gallons for each jurisdiction, you can then calculate the net taxable gallons. Net taxable gallons are calculated by subtracting fuel tax-paid gallons from taxable gallons. The calculation for California would be:

3,567 taxable gallons - 2,385 fuel tax-paid gallons = 1,182 net taxable gallons.

When you have completed both of these calculations for each jurisdiction, the worksheet will look like this:

IFTA Trip Worksheet
Jurisdiction	Rate	Total Miles In Jurisdiction	Taxable miles	Taxable Gallons	Fuel Tax Paid Gallons	Net Gallons
AZ	0.260	18,075	18,075	3,111		3,111
CA	0.295	20,725	20,725	3,567	2,385	1,182
ID	0.250	10,235	10,235	1,762		1,762
IN	0.160	13,670	13,670	2,353	2,353	0
IN	0.110		13,670	2,353		2,353
NV	0.270	12,091	12,091	2,081	921	1,160
OR	0.000	12,875	12,875	2,216	2,480	(264)
UT	0.245	75,093	75,093	12,925	19,894	(6,969)

Total		162,764	176,434	30,368	28,033	2,335

Important things to remember:

In this exercise the total net gallons total is neither zero, nor close to zero, it is 2,335 (you may have a slightly different answer due to rounding). This is not an error, because surcharge gallons were used. The net gallons should equal the sum of any surcharge gallons, off-highway gallons, and untaxed bulk fuel from another jurisdiction. Off-highway gallons are included in exercise 3.
If total net gallons are not exact, but within a few gallons, it is acceptable. Rounding usually accounts for the difference. For this exercise the calculation is: 2,353 (surcharge gallons) + 0 off-highway miles + 0 bulk gallons = 2,353 net gallons. The difference between 2,353 surcharge gallons and the 2,335 total net gallons is 18 gallons, which is acceptable.
The surcharge for Indiana is calculated using the state's taxable gallons in column e.
For this exercise, the 19,984 Utah fuel Tax Paid Gallons must agree with the amount on Schedule A, Part B, line 7.
If you have PTO or off-highway gallons they are tax-paid gallons and are exempt from fuel taxs, you will need to complete Schedule B - Credit for Tax-Paid on Exempt Fuel for Utah -Based Carriers. They would appear in Part C on lines 12, 13, or 14 depending upon your individual circumstances. PTO and off-highway gallons will be introduced in exercise 3.

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Step Three

With the completed worksheet, we can now transfer the data to section 5 of the return. The information is transferred into columns a through h. To complete section 5, calculate the Tax due or (Credit) column i and Total due or (credit) column k.

Section 5 is the IFTA Fuel Tax and Utah Special Fuel Tax Computation for Qualified Vehicles.

5. IFTA Fuel Tax and Utah Special Fuel Tax (round to the nearest whole gallons and miles)
a Juris- diction	b Fuel type	c Tax rate	d Total miles in juris.	e Taxable miles in jurisdiction.	f Taxable gallons	g Fuel tax-paid gallons	h Net taxable gallons (f minus g)	i Tax due or (credit)	j Interest due	k Total due or (credit)
AZ	D	0.260	18,075	18,075	3,111		3,111	808.86		808.86
CA	D	0.295	20,725	20,725	3,567	2,385	1,182	348.69		348.69
ID	D	0.250	10,235	10,235	1,762		1,762	440.50		440.50
IN	D	0.160	13,670	13,670	2,353	2,353	0	0.00		0.00
IN	S	0.110		13,670	2,353		2,353	258.83		258.83
NV	D	0.270	12,091	12,091	2,081	921	1,160	313.20		313.20
OR	D	0.000	12,875	12,875	2,216	2,480	(264)	0.00		0.00
UT	D	0.245	75,093	75,093	12,925	19,894	(6,969)	(1,707.41)		(1,707.41)


6. Miles for all other jurisdictions			0				Non-IFTA jurisdictions are only Washington DC, Hawaii, Alaska, Yukon, Northwest Territories, Mexico. List Oregon in section 5 above
7. Total all pages (columns d thru k)			162,764	176,434	30,368	28,033	2,335	462.67		462.67

Important things to remember:

Tax due or (credit) is determined by multiplying the Net taxable gallons (column h) by the Tax rate (column c).
Since there is no interest, the total due or (credit) is the same as the Tax due (column i)
The return only has 14 individual lines. If your fleet travels in more than 14 jurisdictions the additional jurisdictions would entered on an IFTA and Special Fuel User Tax Return Continued, form TC-922. The total all pages for column k (total tax or [credit]) is entered on line 7 of the return. This amount is $462.67.
Miles for all other states will normally be zero. The only time you enter miles in this block is when vehicles from the fleet travel in a non-IFTA jurisdiction which are: the District of Columbia, Mexico, Hawaii, Alaska, Yukon, or Northwest Territories.

The following section of the return cannot be completed until parts B and C, of Schedule A, form TC-922A are completed.

8. __ Check box if NO OPERATION this period __ CANCEL IFTA License (Cancel date: ______________) Mail to: Utah State Tax Commission 210 N 1950 W Salt Lake City, Utah 84134		9. Sales tax due or (credit) attach TC-922A
		10. Credit for tax reported on exempt fuel-attach TC-922B
		11. Previous payments (for amended returns only)
		12. Penalty 10% or $50 (see instructions)
		13. Total balance due or (credit)
I certify under penalties of perjury, that this report is true, correct, and complete to the best of my knowledge.
Signature	Title		date	telephone

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Schedule A, Bulk Fuel Reporting and Sales Tax Due on Undyed Diesel Fuel

Bulk fuel was introduced in this exercise. Schedule A ( form TC-922A) must be filed if the fleet is Utah based, and you purchase or use bulk fuel. You must account for all bulk fuel purchased and consumed, regardless of how it is used. Tax is paid on bulk fuel, so the 2,875 gallons must be included in the gallons used by the fleet in Utah tax-paid gallons. This is done by entering the amount from Part B, line 7, on the Utah line, in the fuel tax paid gallons block (column g) on the IFTA/Special Fuel User Tax Return (form TC-922).

You need to keep invoices for purchases of bulk fuel. Also, a record of bulk fuel dispensed into fleet vehicles must be maintained to substantiate calculations on your return. An invoice containing the following information would be filed in the exercise company's office records and retained for three years:

The 2,400 gallons of bulk diesel fuel were purchased on one invoice. The price per gallon was $1.95, excluding federal excise tax (F.E.T.).

In addition, the company's office records will have logs showing the number of bulk fuel gallons entered into the fuel tanks of the vehicles in the fleet. Remember to keep these invoices and logs on file, so the information can substantiated if your company is audited.

The completion of Schedule A, Bulk Fuel Reporting and Sales Tax Due on Undyed Diesel Fuel (Form TC-922A), Parts B, C and D is the final step. When schedule A is completed, any amount from line 21, Part D will be entered on line 9 of the IFTA/Special Fuel User Tax Return.

The TC-922A has four parts, and each part is shown and discussed separately.

Remember bulk fuel includes fuel entered into or dispensed from a tank in the bed of a small truck (if fuel is entered into a tank that does not supply the engine of a vehicle it is bulk fuel). Fuel entered into the tank of a vehicle from one of these tanks must be included in the bulk fuel usage in Part A.

Part A - Calculate Undyed Diesel Fuel Dispensed	(a) Utah Gallons	(b) Non-Utah Gallons	(c) Total Gallons
1. Beginning undyed bulk fuel inventory	1100		1100
2. Undyed fuel purchased in bulk	2400		2400
3. Ending undyed bulk fuel inventory	625		625
4. Undyed bulk fuel dispensed from inventory (add lines 1 and 2, subtract line 3)	2875		2875
5. undyed fuel purchased at service stations (non-bulk)	17019	8139	25158
6. Total undyed fuel dispensed (add lines 4 and 5)	19894	8139	28033

Important things to remember:

This schedule is for Utah purchased fuel only.
The beginning bulk fuel inventory line 1a should be the same as line 3a of the previous reporting period.
Bulk fuel purchases on line 2 must equal the total number of gallons shown on all purchase invoices for the reporting period.
Line 3. Bulk fuel remaining in the storage tanks should be measured with a measuring stick, and the number of gallons should agree with the ending bulk fuel inventory reported on this line. If the ending bulk fuel inventory from the previous period plus new purchases minus the total gallons dispensed do not agree with the measured fuel then you need to determine why.
Part A includes all undyed fuel regardless of how it was used. Thus, the figures will include fuel used in non-IFTA qualified vehicles. Part B and C will account for the tax category of fuel usage such as fuel used in machinery, PTO and off-highway.
Accurate record keeping is very important. If your records do not substantiate your calculations you could owe penalty and interest.

Part B - Categorized Undyed Diesel Fuel Dispensed	(a) Utah Gallons	(b) Non-Utah Gallons	(c) Total Gallons
7. Total undyed fuel dispensed into Utah IFTA fleet	19894	8139	28033
8. Total undyed fuel dispensed into Utah Special Fuel User fleet	0	NA	0
9. Total undyed fuel dispensed into machinery, equipment, reefers, etc.	0		0
10. Sales of undyed fuel to third parties and other adjustments (attach explanation)	0		0
11. Total undyed fuel dispensed (add lines 7, 8, 9, & 10) - This should equal line 6	19894	8139	28033

Note: All fuel purchased or dispensed in Utah went into the tanks of IFTA qualified vehicles, so lines 9 and 10 do not apply to this exercise. . Exercise three will introduce fuel dispensed into Utah Special Fuel User vehicles, PTO and off-highway gallons which will require completion of these lines. However, please note lines 7 and 11 are the same as the total gallons on line 6 of part A

Part C - Categorized Utah Undyed Diesel Fuel Consumed for Non-Highway purposes	(a) Subject to Utah Sales & Use Tax	(b) Exempt from Utah Sales & Use Tax	(c) Total Gallons
12. Gallons consumed in Utah off-highway travel, computed from the Utah line of the IFTA return (taxable Utah miles subtracted from Utah total miles, divided by MPG)
13. Utah PTO gallons from Schedule B, line 31
14. Utah non-highway gallons from Schedule B, line 30 (undyed fuel dispensed into machinery, equipment, reefers, etc.)
15. Total gallons (add lines 12, 13, & 14)

Note: Part C does not apply to this exercise because there were no off-highway miles, PTO gallons, or gallons used in machinery, equipment or reefers.

We can now complete Part D of Schedule A. This part is used to calculate the sales and use tax that is due on the Utah off-highway and PTO gallons in part C. This exercise did not include non-highway activities so no sales and use tax is due.

Part D - calculate Utah Sales and Use Tax Due	(a) Utah Only	23. Statement of Exemption I certify that the fuel claimed on line 15b, above: ___ Was used in a qualified manufacturing process ___ Other (please explain)
16. Undyed diesel fuel purchased in Utah (add 2a and 5a)	$ 19,419
17. Amount paid,, excluding state and federal excise tax, for undyed diesel fuel purchased in Utah (for gallons shown on line 16)	$ 37,867
18. Average price per gallons (line 16 divided by line 17)	$1.95
19. Amount paid for fuel subject to sales and use tax in Utah (multiply line 15a by 18)	$ 0
20. Sales tax rate - see instructions	6.260 %
21. Sales & use tax (multiply line 19 by line 20) enter this amount on line 9 of form TC-922, OR report amount on your sales & use tax return and complete line 22	$ 0
22. If reporting sales & use tax due on your Sales & Use Tax Return, include the amount from line 19 on your Sales & Use Tax Return. Enter your sales & use tax account number here.	Account number	Authorized Signature

Notes

When purchasing fuel, make sure the invoice breaks out the amount of excise and sales tax
Line 16 is the total of all fuel purchased in Utah during the reporting period. Organizing and sorting your fuel receipts and invoices into Utah and non-Utah purchases makes this easy to determine.
The sales tax rate may change. Do not assume the rate is the same as the previous reporting period. If you are not sure call one of the numbers in the instructions on the back of the form or you may verify the rate through the Internet at www.tax.utah.gov/sales/rates.html
Line 3. Bulk fuel remaining in the storage tanks should be measured with a measuring stick, and the number of gallons should agree with the ending bulk fuel inventory reported on this line. If the ending bulk fuel inventory from the previous period plus new purchases minus the total gallons dispensed do not agree with the measured fuel then you need to determine why.
Part A includes all undyed fuel regardless of how it was used. Thus, the figures will include fuel used in non-IFTA qualified vehicles. Part B and C will account for the tax category of fuel usage such as fuel used in machinery, PTO and off-highway.
Accurate record keeping is very important. If your records do not substantiate your calculations you could owe penalty and interest.

Click here to view the completed TC-922A, Schedule A.

When Schedule A has been completed and any amount on line 21, part D has been entered on the IFTA/Special Fuel User Return, line 9, the return is ready to be completed. The final actions are to sum the amounts from lines 7, column k; lines 9 through 12 and enter the answer on line 13. this is the total balance due or (Credit). For this exercise the amount due is $462.67.

8. __Check box if NO OPERATION this period __ CANCEL IFTA License (Cancel date: ______________) Mail to: Utah State Tax Commission 210 N 1950 W Salt Lake City, Utah 84134		9. Sales tax due or (credit) attach TC-922A			0	00
		10. Credit for tax reported on exempt fuel-attach TC-922B
		11. Previous payments (for amended returns only)
		12. Penalty 10% or $50 (see instructions)
		13. Total balance due or (credit)			462	67
I certify under penalties of perjury, that this report is true, correct, and complete to the best of my knowledge.
Signature	Title		date	telephone

Note: Line 13 includes the total amount from line 7, column k through line 12. Remember to sign and mail the return by the due date pre-printed in section two of the return.

Click here to view the completed TC-922 return for exercise 2.

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Exercise Three

This exercise builds on the information from the simulated Utah based company presented in exercises 1 and 2. Up to this point, the company has qualified IFTA vehicles (diesel only, with no off-highway miles or PTO units).

A summary of the data from the first two exercises is shown in the following chart:

Jurisdiction	Total Miles in State	Tax Paid Gallons
AZ	18,075	0
CA	20,725	2,385
ID	10,235	0
IN	13,670	2,353
NV	12,091	921
OR	12,875	2,480
UT	75,093	19,894

Please note that the jurisdictions between Utah and Indiana are not included in this exercise. This is for convenience only. The other jurisdictions would be included in an actual return.

2,400 gallons of bulk fuel were purchased in Utah. The ending bulk fuel inventory from the previous reporting period was 1,100 gallons. The fleet used 2,875 gallons of bulk fuel (included in the 19,894 tax paid gallons).
There were no off-highway miles.
Fuel invoices showed total purchases of $37,867 excluding taxes.

Exercise 3 adds these additional factors to the parameters listed above:

A small fleet of special fuel user vehicles (diesel) traveled 12,225 miles in Utah. These vehicles used 1,485 gallons of fuel, of which 1,085 were tax paid gallons (paid at the pump $1.95 per gallon without taxes) and 400 gallons of tax paid bulk fuel. The fleet is based out of St. George, Utah.
The bulk fuel gallons inventory, from the previous period, is the same as exercise 2 (1,100 gallons). An additional 4,400 gallons of bulk fuel were purchased during the reporting period, bringing the total to 6,800 gallons for the period (4,400 gallons + 2,400 gallons from exercise 2). The bulk fuel was purchased on three invoices. The price per gallon does not include federal excise tax:

Invoice Date	Gallons Purchase	Price Per Gallon
From exercise 2	2,400	1.96
January 12, 2005	3,400	1.95
February 16, 2005	1,000	1.95

Bulk fuel includes fuel entered into a tank in the bed of a small pick truck (if fuel is entered into a tank that does not supply the engine of a vehicle it is bulk fuel)

The ending bulk fuel inventory for the reporting period is 400 gallons.
A fleet of 10 cement mixers used an additional 4,225 gallons of bulk diesel fuel.
The fleet of cement mixers traveled 17,495 miles.
- 1,200 miles were traveled in Nevada, and
- 1,275 miles were Utah, off-highway miles.
Note: Credit for power take-off units is claimed on Schedule B, Credit for Tax Paid on Exempt Fuel for Utah-based Carriers.
The return was due on April 30, 2005. However, it will not be filed and paid until June 2, 2005. Service station purchases totaled $25,589 excluding excise taxes.
The St. George sales and use tax rate is 6.260%.

Start this exercise by updating an IFTA Trip Worksheet. The worksheet was created as a training tool for organizing essential information needed to complete the Utah State Tax Commission's Fuel Tax Return, Form TC-922.

The only new IFTA qualified vehicles introduced in this exercise are the cement mixers, which traveled 18,695 miles (17,495 were Utah miles and 1,200 were Nevada miles). The additional mileage taken from the driver's trip reports brings the miles in jurisdiction figures for Utah and Nevada up to the following totals:

Utah	92,588
Nevada	13,291

Add the additional IFTA traveled miles to the trip worksheet.

Important Things to Remember:

Bulk fuel gallons are tax-paid gallons and must be included in Utah fuel tax-paid gallons.
IFTA qualified Fuel tax paid gallons are 32,089. Do not include the 1,485 gallons used in the non-IFTA qualified vehicles in your totals in section 7. They are entered on a separate line for Utah Special Fuel Tax (non-IFTA Qualified Vehicles) identified with a fuel type of UF.
Power take-off unit (PTO) gallons are claimed on Schedule B, Form TC-922, not the IFTA/Special Fuel User Tax Return. If you need to review the definition of PTO, click here.
Utah Taxable Miles. The 1,275 off-road miles are exempt from the $0.245 special fuel tax. These miles are included in the total miles in jurisdiction column and are part of the MPG calculation. However, these miles are subtracted from the Utah Total Miles in Jurisdiction to obtain the Taxable Miles in Jurisdiction (92,588 - 1,275 = 91,313).
Oregon has no tax. However, miles traveled in the jurisdiction and the gallons purchased must be included. If they are not included, the miles per gallon (MPG) calculation will be wrong.
Indiana has a surcharge, so an extra line has been included for Indiana. The surcharge must be included in the calculations.

Bulk fuel requires the completion of Schedule A, Bulk Fuel Reporting and Sales Tax Due on Undyed Diesel Fuel (Form TC-922A). Start this exercise by completing Parts A and B of this form.

You will need to sort fuel purchases into two groups. Utah purchases in one group and purchases in all other jurisdictions in the second group. Then sort the Utah purchases into bulk fuel and service station purchases. This information is then entered on Part A of Schedule A, Form TC-922A. Part A is shown below:

Part A - Calculate Undyed Diesel Fuel Dispensed	(a) Utah Gallons	(b) Non-Utah Gallons	(c) Total Gallons
1. Beginning undyed bulk fuel inventory	1100		1100
2. Undyed fuel purchased in bulk	6800		6800
3. Ending undyed bulk fuel inventory	400		400
4. Undyed bulk fuel dispensed from inventory (add lines 1 and 2, subtract line 3)	7500		7500
5. Undyed fuel purchased in service stations (non-bulk)	17450	8139	25589
6. Total undyed fuel dispensed (add lines 4 and 5)	24950	8139	33089

Notes

The 24,950 Utah gallons on line 6 includes 23,950 IFTA gallons and 1,000 non-IFTA gallons. The IFTA and non-IFTA gallons are separated in part B.
- The 23,950 Utah IFTA qualified gallons are entered on line 7, part B
- The 1,000 Utah special fuel user gallons are entered on line 8, part B

Part B, of Schedule A:

Part B - Categorized Undyed Diesel Fuel Dispensed	(a) Utah Gallons	(b) Non-Utah Gallons	(c) Total Gallons
7. Total undyed fuel dispensed into Utah IFTA fleet	23950	8139	32089
8. Total undyed fuel dispensed into Utah Special Fuel User Fleet	1000	NA	1000
9.Total undyed fuel dispensed into machinery, equipment, reefers, etc.	0		0
10. Sales of undyed fuel to third parties and other adjustments (attach explanation)	0		0
11. Total undyed fuel dispensed (add lines 7, 8, 9, & 10) - This should equal line 6	24950	8139	33089

Notes

The 23,950 Utah gallons on line 7 are tax-paid gallons and are entered on the Utah line on the trip report worksheet or section 5 on the IFTA return, form TC-922
The 32,089 total gallons line 7 column c should agree with the Total Fuel tax-paid gallons on the worksheet (worksheet simulates section 5 on the IFTA/Special Fuel User Tax Return).

When Schedule A, parts A and B are completed, the IFTA Trip Worksheet can now be completed. The following information on the worksheet is taken from the driver trip reports and fuel receipts and Schedule A (Form 922A):

IFTA Trip Worksheet
Jurisdiction	Rate	Total Miles In Jurisdiction	Taxable Miles in Jurisdiction	Taxable Gallons	Fuel Tax Paid Gallons	Net Gallons
AZ	0.260	18,075	18,075
CA	0.295	20,725	20,725		2,385
ID	0.250	10,235	10,235
IN	0.160	13,670	13,670		2,353
IN	0.110
NV	0.270	13,291	13,291		921
OR	0.000	12,875	12,875		2,480
UT	0.245	92,588	91,313		23,950

Total		181,459	180,184	0	32,089	0

Important Things to Remember:

Two of the most critical areas of the worksheet are the total miles traveled in each jurisdiction and the fuel tax paid gallons. These figures come from driver trip logs and documentation. Keep all invoices and document actual miles driven in each jurisdiction, do not use road map miles.
The 23,950 Utah fuel tax paid gallons, highlighted in green on the worksheet, are taken from Schedule A, Bulk Fuel Reporting and Sales Tax Due on Undyed Diesel Fuel, Part A, line 7.
Utah IFTA qualified taxable miles: The 1,275 off-road miles are exempt from the special fuel tax. These miles are included in the total miles in jurisdiction column, but must be subtracted from the total miles in jurisdiction to obtain the taxable miles in jurisdiction (92,588 - 1,275 = 91,313).
The 1,485 gallons dispensed into special fuel user vehicles are not included in our documentation at this time. Do not include them on the worksheet. They will be entered on a separate line of the return for Utah Special Fuel Tax (non-IFTA Qualified Vehicles).

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Step One

When total miles in jurisdiction and total gallons used in all jurisdictions have been entered, and each column totaled, you then need to calculate the MPG in section 5 on the IFTA return form TC-922. This section has been duplicated in the table below:

5. Fuel Summary (For Qualified IFTA Vehicles)

Fuel Type	Total Miles Traveled All Jurisdictions	Total Gallons Used All Jurisdictions	Average Fleet MPG (2 decimal places)
D-Diesel	181,459	÷ 32,089	= 5.65
UF-Special Fuel User	12,225	÷ 1,485	= 8.23
Other:
Total Miles	193,684	33,574

Total gallons used is determined by adding total tax paid gallons from service stations and bulk fuel tax paid gallons used. For this example, we have bulk fuel gallons used by the interstate fleet and cement mixers (3,275 plus 4,225) for a total of 7,500 bulk fuel gallons, plus 25,589 service station gallons = 32,089 total gallons used. The total gallons used must agree with the total gallons on Schedule A, line 7.

Do not include the non-qualified IFTA fleet gallons in the IFTA fleet MPG calculation. They are accounted for separately.

Calculate Miles Per Gallon to three (3) decimal places, then round to two (2). For our exercise the calculation is:

181,459 divided by 32,089 = 5.654 rounded to 5.65 MPG.

The Average Fleet MPG is used to complete the IFTA Trip Worksheet.

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Step Two

The Fleet MPG is used to calculate the taxable gallons for each jurisdiction (taxable miles ÷ 5.65 MPG). Note: If a jurisdiction has a surcharge, the surcharge taxable gallons are the same as the regular taxable gallons.

The calculation for Indiana's taxable gallons is: 13,670 ÷ 5.65 = 2,419 taxable gallons

The computed taxable gallons are used to calculate the net gallons for each jurisdiction (taxable gallons - tax paid gallons = net gallons).

The calculation for Indiana's net taxable gallons is: 2,419 - 2,353 = 66 net taxable gallons
The net taxable gallons calculation for Indiana's surchage is 2,419 - 0 = 2,419 net taxable gallons

When you have completed these calculations for each jurisdiction the worksheet should have the amounts as shown.

IFTA Trip Worksheet
Jurisdiction	Rate	Total Miles In Jurisdiction	Taxable Miles in Jurisdiction	Taxable Gallons	Fuel Tax Paid Gallons	Net Gallons
AZ	0.260	18,075	18,075	3,199		3,199
CA	0.295	20,725	20,725	3,668	2,385	1,283
ID	0.250	10,235	10,235	1,812		1,812
IN	0.160	13,670	13,670	2,419	2,353	66
IN	0.110			2,419		2,419
NV	0.270	13,291	13,291	2,353	921	1,431
OR	0.000	12,875	12,875	2,279	2,480	(201)
UT	0.245	92,588	91,313	16,162	23,950	(7,788)

Total		181,459	193,854	34,310	32,089	2,221

Notes

The 2,221 total net gallons should equal the surcharge gallons minus off-highway gallons

Surcharge gallons	2,419
Off-highway gallons	(226)	1,275 miles divided by 5.65 MPG
Total gallons	2,193

The calculation is off by 28 gallons which is acceptable (rounding can affect this calculation).

The next step in completing the return is to transfer the worksheet data to section 5 on the IFTA/Special Fuel User Tax Return, Form TC-922.

When we transfer the data from the worksheet to the return, columns a through h on the return will be completed. You are now ready to finish section 5 by calculating the tax due column i, interest due column j, and total due or credit column k.

Tax Due for each jurisdiction is computed by multiplying the jurisdictions net taxable gallons by the jurisdictions tax rate.

The calculation for Arizona is 3,199 net taxable gallons x 0.260 tax rate = $831.74

Interest Due is calculated by IFTA Agreement at a rate of 12% per annum and is assessed at one percent each month until the tax due is paid. Remember, if you gone one day into the next month, interest is assessed for the entire month. If a return is late for one month the rate is 1%. If it is late two months the rate is 2%. Each additional month adds another one percent. For this exercise, the return is due April 30, 2005 but is not filed and paid until June 2, 2005. The return is two months late so interest is calculated using 2 percent.

The interest due for Arizona is $831.74 x .02 = $16.63

Total Due or (Credit) for each jurisdiction is the sum of the tax due or (Credit) and interest due.

the total due for Arizona is $831.74 + $16.63 = $848.37 total due

When we have completed each of these calculations for each jurisdiction Section 5, IFTA Fuel Tax and Special Fuel Tax will look our example below.

5. IFTA Fuel Tax and Utah Special Fuel Tax (round to the nearest whole gallons and miles)
a Juris- diction	b Fuel type (D,G,GH, P,N, S)	c Tax Rate	d Total Miles in Juris.	e Taxable Miles in Juris.	f Taxable Gallons (e/Ave MPG)	g Fuel Tax-Paid Gallons	h Net Taxable Gallons (f minus g)	i Tax Due or (Credit)	j Interest Due	k Total Due or (Credit)
AZ	D	0.260	18,075	18,075	3,199		3,199	831.74	16.63	848.37
CA	D	0.2953	20,725	20,725	3,668	2,385	1,283	378.49	7.57	386.06
ID	D	0.250	10,235	10,235	1,812		1,812	453.00	9.06	462.06
IN	D	0.160	13,670	13,670	2,419	2,353	66	10.56	0.21	10.77
IN	SC	0.110		13,670	2,419		2,419	266.09	5.32	271.41
NV	D	0.270	13,291	13,291	2,352	921	1,431	386.37	7.73	394.10
OR	D	0.000	12,875	12,875	2,279	2,480	(201)			0.00
UT	D	0.245	92,588	91,313	16,162	23,950	(7,788)	(1,908.06)		(1,908.06)
UT	UF	0.245	12,225	12,225	1,485	1,485	0

Miles For All Non-IFTA Jurisdictions			0
Total All Pages (columns d through k)			181,459	193,854	34,310	32,089	2,221	418.19	46.52	464.71

Notes

Interest is calculated on the tax due. By the IFTA Agreement, interest is calculated at 12% per annum. Interest is assessed at one percent each month until the tax is paid. Remember, if you go one day into the next month, interest is assessed for the entire month.
Do not calculate interest for jurisdictions with a credit in column i, Tax Due or (Credit). Interest is only calculated when a tax is due.
Miles for All Non-IFTA Jurisdictions. Only enter miles traveled in non-IFTA jurisdictions. The only non-IFTA jurisdictions are: Alaska, Hawaii, the District of Columbia, the Yukon and Northwest Territories.. DO NOT ENTER MILES IN THIS AREA UNLESS YOU ACTUALLY TRAVELED IN ONE OF THESE JURISDICTIONS.
The Special Fuel User data has been entered on a separate Utah line identified with the tax type of UF. Do not add the special fuel user data to your totals. They are only reported for information purposes.
The Utah tax paid gallons and the total fuel tax paid gallons must be the same amounts as the Utah gallons 23,950 (column a) and the total gallons 32,089 (column c) on line 7, Part B, Schedule A. Schedule A must be completed before you start the return.

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Step Three

This exercise introduced non-qualified IFTA vehicles, vehicles with power take-off units (PTO), and off-road miles. This requires that both of the following schedules must be completed before we can finish the last portion of the return:

Schedule A, Bulk Fuel Reporting and Sales Tax Due On Undyed Diesel Fuel
Schedule B, Credit For Tax-Paid on Exempt Fuel for Utah-Based Carriers.

8. __ Check box if NO OPERATION this period __ CANCEL IFTA License (Cancel date: ______________) Mail to: Utah State Tax Commission 210 N 1950 W Salt Lake City, Utah 84134		9. Sales tax due or (credit) attach TC-922A
		10. Credit for tax reported on exempt fuel-attach TC-922B
		11. Previous payments (for amended returns only)
		12. Penalty 10% or $50 (see instructions)
		13. Total balance due or (credit)
I certify under penalties of perjury, that this report is true, correct, and complete to the best of my knowledge.
Signature	Title		date	telephone

Documentation of Bulk fuel purchases and use, and credit for power take-off units require the completion of Schedule A, Form TC-922A, Bulk Fuel Reporting and Sales Tax Due on Undyed Diesel Fuel, and Form TC-922B, Credit for Tax-Paid on Exempt Fuel for Utah-Based Carriers. These two forms need to be completed and information from some lines entered on the IFTA/Special Fuel User Tax Return, form TC-922.

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Step Four

Schedule A, Form TC-922A, Bulk Fuel Reporting and Sales Tax due on Undyed Diesel Fuel must be completed to document bulk fuel purchases and usage, and to determine if sales tax is due. Only Utah-based companies complete this form.

The first entry on schedule TC-922A is the beginning undyed bulk diesel fuel inventory. This is the same as the ending undyed bulk fuel inventory from line 3 of the return for the previous reporting period. There were 1,100 gallons in the ending inventory. Enter this amount on line 1.

Bulk fuel purchased during the reporting period is entered on line 2.

The ending bulk fuel inventory is entered on line 3.

Bulk fuel includes fuel entered into a tank in the bed of a small pick truck (if fuel is entered into a tank that does not supply the engine of a vehicle, it is bulk fuel)

Part A - Calculate Undyed Diesel Fuel Dispensed	(a) Utah Gallons	(b) Non-Utah Gallons	(c) Total Gallons
1. Beginning undyed bulk fuel inventory	1100		1100
2. Undyed fuel purchased in bulk	6800		6800
3. Ending undyed bulk fuel inventory	400		400
4. Undyed bulk fuel dispensed from inventory (add lines 1 and 2, subtract line 3)	7500		7500
5. Undyed fuel purchased at service stations (non-bulk)	17450	8139	25589
6. Total undyed fuel dispensed (add lines 4 and 5)	24950	8139	33089

Notes

The ending inventory should be checked. This may be accomplished by measuring the amount of fuel remaining in the storage tank with a fuel measuring stick.
Part A includes all undyed fuel regardless of how it was used or where it was purchased. Thus, the figures will include the non-IFTA fleet. Parts B and C of the form breaks out the fuel into tax category by usage,, e.g. PTO or off-highway.
Accurate record keeping is very important. If your records do not substantiate your calculations, you could lose credits and owe additional tax, penalty. or interest.
Total fuel dispensed is the available gallons minus ending inventory. This should agree with your records of fuel consumed (used) during the reporting period.

Part B - Categorized Undyed Diesel Fuel Dispensed	(a) Utah Gallons	(b) Non-Utah Gallons	(c) Total Gallons
7. Total undyed fuel dispensed into Utah IFTA fleet	23950	8139	32089
8. Total undyed fuel dispensed into Utah Special Fuel User fleet	1000	NA	1000
9. Total undyed fuel dispensed into machinery, equipment, reefers, etc.	0		0
10. Sales of undyed fuel to third parties and other adjustments (attach explanation)	0		0
11. Total undyed fuel dispensed (add lines 7, 8, 9, & 10) - This should equal line 6	24950	8139	33089

Notes

The 24,950 Utah gallons from line 6 is the total fuel dispensed into all vehicles. We break the fuel into its use on lines 7 and 8. The 23,950 gallons dispensed into the IFTA vehicles is entered on line 7 and the 1,000 special fuel user gallons on line 8.
The 23,950 Utah gallons dispensed into the Utah IFTA fleet on line 7 is transferred to the Utah line on the worksheet or in section 5 of the return in the fuel tax-paid gallons.
The 32,089 total gallons on line 7 should agree with the total fuel tax-paid gallons on the worksheet or section 7 on the return.

Part C - Categorized Utah Undyed Diesel Fuel Consumed for Non-Highway purposes	(a) Subject to Utah Sales & Use Tax	(b) Exempt from Utah Sales & Use Tax	(c) Total Gallons
12. Gallons consumed in Utah off-highway travel, computed from the Utah line of the IFTA return (taxable Utah miles subtracted from Utah total miles, divided by MPG)	226		226
13. Utah PTO gallons from Schedule B, line 31		472	472
14. Utah non-highway gallons from Schedule B, line 30 (undyed fuel dispensed into machinery, equipment, reefers, etc.)
15. Total gallons (add lines 12, 13, & 14)	226	472	698

Notes

Line 12 is your off-highway gallons. You may also calculate off-highway gallons by dividing the off-highway miles by the MPG (1,275 ÷ 5.65 = 226 gallons)
Line 13 is transferred from line 31 Part B on Schedule B, Credit for Tax-Paid on Exempt Fuel for Utah-Based Carriers. The exempt fuel was consumed in the cement mixers, which are considered manufacturing. Fuel used in the manufacturing process is exempt from sales and use tax.

We can now complete Part D of Schedule A. This part is used to calculate the sales and use tax that is due on the Utah off-highway and PTO gallons in part C.

Part D - calculate Utah Sales and Use Tax Due	(a) Utah Only	23. Statement of Exemption I certify that the fuel claimed on line 15b, above: ___ Was used in a qualified manufacturing process ___ Other (please explain)
16. Undyed diesel fuel purchased in Utah (add 2a and 5a)	$ 24,950
17. Amount paid,, excluding state and federal excise tax, for undyed diesel fuel purchased in Utah (for gallons shown on line 16)	$ 48,653
18. Average price per gallons (line 16 divided by line 17)	$1.95.88
19. Amount paid for fuel subject to sales and use tax in Utah (multiply line 15a by 18)	$ 440.70
20. Sales tax rate - see instructions	6.260 %
21. Sales & use tax (multiply line 19 by line 20) enter this amount on line 9 of form TC-922, OR report amount on your sales & use tax return and complete line 22	$ 27.59
22. If reporting sales & use tax due on your Sales & Use Tax Return, include the amount from line 19 on your Sales & Use Tax Return. Enter your sales & use tax account number here.	Account number	Authorized Signature

Note: When purchasing fuel make sure the invoice breaks out the amount for excise tax and sales tax.

Click here to see the completed Schedule A, form TC-922A.

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Step Five

This part of our training is the completion of Schedule B, form TC-922B, Credit for Tax Paid on Exempt Fuel for Utah-Based Carriers. Only Utah-based companies complete this form.

This schedule is used to claim credit for PTO gallons used to operate the fleets' cement mixers. You start by entering the 4,225 gallons that were dispersed into the fuel tanks of the cement mixers on line 1.

Part A: From Utah PTO Gallons Consumed (see instructions)
1. Enter gallons disbursed into cement trucks	1 4,225
2. Cement truck exemption gallons (multiply line 1 by .20)		2 845
3. Enter gallons disbursed into trash compaction vehicles	3
4. Trash compaction vehicle exempt gallons (multiply line 3 by .20)		4
5. Enter the number of pounds of dry product loaded or off loaded	5
6. Divide line 5 by 6,000	6
7. Enter PTO gallons consumed per 6,000 pounds loaded/off loaded (see instructions)	7
8. Dry product loaded/off loaded PTO exempt gallons (multiply line 6 by line 7)		8
9. Enter the number of gallons of liquid product loaded or off loaded	9
10. Divide line 9 by 1,000	10
11. Enter PTO gallons consumed per 1,000 gallons loaded/off loaded (see instructions)	11
12. Enter liquid product loaded/off loaded PTO exempt gallons (multiply line 10 by line 11)		12
13. Other PTO gallons claimed (attach schedule of explanation if claiming an amount other than that allowed above		13
14. Total PTO gallons (add line 2, 4, 8, 12, and 13)		14 845
If you are operating ONLY IN UTAH and ARE NOT CLAIMING OFF-HIGHWAY TRAVEL on the IFTA return, GO TO Part C

Part B of the schedule requires the following information from the IFTA return and Part A:

On line 1, enter the total miles driven from column d of the return.	181,459
On line 2 enter the total tax paid gallons consumed from column g of the return.	32,089
On line 3 enter the total from Part A line 14, Total Utah PTO gallons.	845
On line 8 enter the Utah taxable miles from column e of the return	91,313

Part B: MPG Excluding PTO Activities and Refundable PTO Gallons
15. Enter total miles reported on the IFTA return (section 7, column d)	15 181,459
16. Enter total fuel consumed shown on the IFTA return (section 7, column f)	16 32,089
17. Utah PTO gallons consumed (from Part A, line 14)	17 845
18. PTO gallons consumed from operations in other states (see instructions).	18 42
19. Total PTO gallons consumed (add lines 17 and 18)	19 887
20. Ono-PTO gallons consumed (subtract line 19 rom line 16)	20 31,202
21. Miles per gallon (MPG) exclusive of PTOs (divide line 15 by line 20)	21 5.82
22. Taxable Utah miles per the IFTA tax return (section 5, column e)	22 91,313
23. Taxable Utah fuel (divide line 8 by line 7)	23 15,690
24. Total Utah fuel (divide line 22 by line 21)	24 16,535
25. Utah taxable gallons reported on the IFTA tax return (section 5, column f)	25 16,162
26. Subtract line 25 from line 24 (enter zero if result in negative)	26 373
27. Refundable PTO gallons consumed (subtract line 26 from line 17)		27 472

Schedule B, Part C does not apply to this exercise.

The refundable PTO gallons consumed (421) is entered on Part D, line 1.

Part C: Undyed Fuel Used Other Than In Motor Vehicle Engines In Utah
28. Undyed diesel fuel purchased in Utah and dispensed into secondary fuel tank of the vehicle when the fuel is used to operate a secondary device and is not used to propel the vehicle	28 0
29. Undyed diesel fuel purchased in Utah and dispensed into machinery and equipment not registered and not required to be registered for highway use	29 0
30. Refundable non-highway gallons (add lines 28 and 29 and enter here and on line 32)		30 0
Part D:
31. Total exempt PTO gallons subject to refund. (enter the gallons from line 27. If you did not complete Part B, enter the gallons from line 14. If you did not complete Parts A or B, enter ZERO)	31 472
32. Enter qualifying exempt gallons from line 30	32 0
33. Total refundable exempt gallons (add lines 31 and 32)	33 472
34. Total refundable (multiply line 33 by the Utah fuel tax rate) Enter here and on IFTA return , line 10		34 115.64

Enter the refundable amount from line 34 ($115.64) to line 10 on the IFTA return.

Click here to see the completed Credit for Tax Paid on Exempt Fuel, form TC-922B.

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Step Six

The last portion of the IFTA tax return can be finished, when schedules TC-922A and TC-922B have been completed and the appropriate amounts from these schedules are entered on lines 9 and 10 of the return,

Penalty is calculated on the amount of the tax due. It is 10 percent of the total tax due or $50 whichever is greater. To calculate the penalty we must determine the net tax due. The net tax due is calculated by adding the total tax due on line 7 column i and any tax or credit from lines 9 and 10. . The penalty calculation is $464.71 + 27.59 - 115.64 = $376.66 net tax due. Penalty is:

$376.66 (net tax due) x 10% = $37.67

Since 10% of the net tax due is less than $50 the penalty is the greater amount or $50.

8. __Check box if NO OPERATION this period __ CANCEL IFTA License (Cancel date: ______________) Mail to: Utah State Tax Commission 210 N 1950 W Salt Lake City, Utah 84134		9. Sales tax due or (credit) attach TC-922A			27	59
		10. Credit for tax reported on exempt fuel-attach TC-922B			(115	64)
		11. Previous payments (for amended returns only)
		12. Penalty 10% or $50 (see instructions)			50	00
		13. Total balance due or (credit)			657	94
I certify under penalties of perjury, that this report is true, correct, and complete to the best of my knowledge.
Signature	Title		date	telephone

The balance due is the sum of lines 7 (column k), 9, 10,11,and 12.

$464.71	total due or (credit), line 7 column k
27.59	sales tax due, line 9
(115.64)	credit on exempt fuel, line 10
50.00	penalty
$657.94	balance due

Click here to see the completed IFTA Fuel Tax Return, form TC-922.

Exercise four is a review and allows you to apply some of the concepts you have learned in the other exercises. If you would like to test these skills click here.

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Review

This exercise has been developed to reinforce the concepts you have acquired from this training. You will complete a Fuel Tax Return form TC-922 for a Utah-based fleet.

Note: To begin, print out this section so you can follow along with the calculations required. You will also need to print out a Form TC-922.

Here is the information you need complete the exercise:

The fleet is IFTA-qualified and is based in Utah. The fleet traveled in three jurisdictions: Utah, Wyoming, and Colorado. Undyed diesel fuel was purchased at service stations in Utah and Colorado. There were no bulk fuel, PTO, or off-highway miles. The following table shows the information from the driver's trip reports and fuel records.

Jurisdiction	Miles Traveled in Jurisdiction	Gallons Purchased
UT	55,000	22,000
WY	40,000
CO	25,000	1,000

The tax rate for each jurisdiction is:

UT	.245
WY	.140
CO	.205

Use this Worksheet to compile your information:

IFTA Trip Worksheet
Jurisdiction	Fuel Type	Rate	Total Miles In Jurisdiction	Taxable miles in Jurisdiction	Taxable Gallons	Fuel Tax Paid Gallons	Net Gallon	Tax



Total

Miles Per Gallon Calculation:

Total Miles Traveled All Jurisdictions divided by / Total Gallons Used all Jurisdictions:

_______ ÷ ________ = _____ Miles Per Gallon

Remember to calculate the Miles Per Gallon to three decimal places and round to two (for example, 5.336 = 5.34).

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Reference Chart for Transfer of Data Between Schedules and IFTA Return

This IFTA Return Data Transfer Chart has been developed to assist you in completing your Fuel Tax Return TC-922. If you work with bulk fuel, off-highway miles, or PTO gallons the chart gives a step-by-step reference to guide you through the completion of Schedules TC-922A and TC-922B, and the return.

For further instructions regarding PTO, or any other specifications, refer to the complete instructions for Schedule A and Schedule B, and the IFTA Return.

Sequence for completion of forms

FIRST Complete Schedule A, (TC-922A) to declare any sales tax paid or that may be due to Utah. Follow the instructions for Part A, Part B, and Part C. This schedule accounts for Utah activity only.

SECOND Complete Schedule B, (TC-922B) to declare any exempt fuel tax you need to receive a credit or refund for as identified in Parts A, B, C and D. Note: Part B of this schedule is only required if you have traveled outside of Utah.

THIRD Complete the Fuel Tax Return, International Fuel Tax Agreement (IFTA) and Special Fuel User Tax (TC-922).

Data Transfer Chart

Use the following chart to guide you through the transfer of data from Schedule A, Schedule B, and the IFTA return. Read the chart from the left hand column to the right. the data from the form identified in the left column will be transferred to the form identified in the right hand column.

Schedule A (TC-922A)	Schedule B (TC-922B)	IFTA Return (TC-922)
STEP 1 - Part b, line 1. Carry the "total undyed diesel used in motor vehicles - exempt from sales and use tax" amount over to the IFTA return.		STEP 1 - Bring the total from Schedule A Part B, Line 1 to the IFTA return block 8, "Fuel Tax-Paid Gallons" column "g" for the Utah jurisdiction. If you used any fuel in non-IFTA qualified vehicles, subtract the gallons used in these vehicles and enter the amount in block 9, column "g".
STEP 2 - Part B, Lines 3 and 4 totaled should equal Schedule B, Part D, line 2 which is the qualifying exempt gallons.	STEP e - Bring the total from Schedule A, Part B, Lines 3 and 4 to Schedule B, Part D, Line 2 "Qualifying exempt Gallons from Part C, line 2" (Part C of this schedule must be completed to receive this credit).
STEP 3- Part C, Line 6. Carry the calculated sales tax due on non-highway usage of special fuel to the IFTA return, box 11 (amount arrived at by multiplying line 4 by line 5).		STEP 3 - Bring the amount over from Schedule A, Part C, line 6 to box 11 on the IFTA return (TC-922). If you have reported the sales and use tax on your sales tax return DO NOT include this amount on the IFTA return.
	STEP 4 - Part D, line 4. Carry the "total Refund" amount over to box 12 on your IFTA return (TC-922).	STEP 4 - Bring the amount over from Schedule B, Part D, line 4 to line 12 on the IFTA return (TC-922), "Credit for tax paid on exempt fuel".
STEPS 5 and 6 are done on the IFTA Return
STEP 5 - Find column d "Total Miles in Jurisdiction" on the IFTA return, block 8. Add all miles traveled in the IFTA jurisdictions which are identified on the back of the IFTA return. Be sure to account for all pages of the IFTA return when stating these miles and do not include miles duplicated as surcharge miles. Account for "miles for all other jurisdictions" by entering the miles driven in the row titled "miles for all other jurisdictions" column d (This is usually a ZERO. Only enter miles traveled in Alaska, Mexico, The District of Columbia and Northwest Territories). Add the total miles traveled in other jurisdictions to the total miles traveled in IFTA jurisdictions . Enter this total on the front page of your IFTA return in the box labeled "Total all pages (column d thru k)". This total is then entered in block 5 of the IFTA return on the line titled "Total miles traveled all jurisdictions".
STEP 6 - Find Column g "Fuel Tax-Paid Gallons" on the IFTA return, block 8. Add all "Fuel Tax-Paid Gallons" together, enter the total in the row titled "Total all pages" in column "g". Bring this total to the top of the IFTA form block 5 and enter the amount on the line titled "Total Gallons Used All Jurisdictions". Then divide the "Total Miles Traveled All Jurisdictions" by the "Total Gallons Used All Jurisdictions" to get your "Average Fleet Miles Per Gallon" (calculate the answer to three decimals and round to two). Note: The total "fuel Tax-Paid Gallons" is fuel put into the tanks of qualified vehicles. DO NOT include reefer (refrigeration unit) fuel.

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