Revised August 31, 2007

Utah State Tax Commission

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

 

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:

  1. 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.
  2. 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:

  1. 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.
  2. 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:

  1. 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.
  2. 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.
  3. 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:

  1. Bulk fuel was used
  2. The fleet had off-highway miles or 96-hour permits
  3. 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:

  1. 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).
  2. 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.
  3. 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
Taxable miles in jurisdiction
Taxable
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:

  1. 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.
  2. 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.
  3. 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.
  4. 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:

  1. Total miles in jurisdiction
  2. taxable miles in jurisdiction, and
  3. 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.

  1. 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.
  2. 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:

  1. 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.
  2. 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:

  1. 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.
  2. 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.
  3. The surcharge for Indiana is calculated using the state's taxable gallons in column e.
  4. For this exercise, the 19,984 Utah fuel Tax Paid Gallons must agree with the amount on Schedule A, Part B, line 7.
  5. 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:

  1. Tax due or (credit) is determined by multiplying the Net taxable gallons (column h) by the Tax rate (column c).
  2. Since there is no interest, the total due or (credit) is the same as the Tax due (column i)
  3. 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.
  4. 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:

  1. This schedule is for Utah purchased fuel only.
  2. The beginning bulk fuel inventory line 1a should be the same as line 3a of the previous reporting period.
  3. Bulk fuel purchases on line 2 must equal the total number of gallons shown on all purchase invoices for the reporting period.
  4. 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.
  5. 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.
  6. 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

  1. When purchasing fuel, make sure the invoice breaks out the amount of excise and sales tax
  2. 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.
  3. 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
  4. 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.
  5. 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.
  6. 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

  1. 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

  2. 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 (co