How to Register for IFTA and IRP: Trucking Tax Guide

If you’re starting a trucking business, International Fuel Tax Agreement (IFTA) registration and International Registration Plan (IRP) trucking registration are two things you need to get right from day one. Without them, your truck could be grounded, fined, or even impounded.

IFTA makes sure you’re paying fuel taxes correctly across multiple states, while IRP ensures your trucks are legally registered for interstate travel. Think of them as two sides of the same coin – both are mandatory for long-haul truckers.

The stakes are high: 72.6 percent of America’s freight moves by truck, generating over $940 billion in revenue, according to Trucking.org. If you want your piece of the pie, let’s break down the IFTA and IRP registration processes so you can stay compliant and keep rolling.

What is IFTA and Who Needs It?

If you're hauling commercial loads across multiple states and buying fuel on the road, you need IFTA registration. IFTA is a system that simplifies fuel tax reporting for truckers who operate in multiple jurisdictions.

How IFTA Simplifies Fuel Tax Reporting

Before IFTA, truckers had to file separate fuel tax reports for every state they traveled through. This was a massive headache. Now, under IFTA, you:

• Register once in your base state
• Report total fuel purchases and miles driven each quarter
• Pay fuel taxes based on where you actually operate, not just where you buy fuel

This prevents truckers from skipping fuel tax payments by only filling up in low-tax states and ensures every state gets its fair share.

States That Participate in IFTA

IFTA includes 48 U.S. states and 10 Canadian provinces. The only exceptions are Alaska and Hawaii.

What is IRP and How Does it Work?

Just like IFTA helps simplify fuel taxes, the IRP makes it easier for truckers to register their vehicles for multi-state operations. Instead of getting separate license plates for each state where you operate, IRP allows you to register once and pay apportioned fees based on your miles traveled.

IRP Fee Structure Explained

Your IRP fees depend on:

• Where you drive (states/provinces where your truck operates)
• How many miles you run in each state
• Your truck’s weight (higher weight = higher fees)

You only pay for the mileage you operate in each jurisdiction, instead of paying the full registration fee separately in every state.

How to Calculate Your IRP Costs

IRP payments are based on the percentage of miles you drive in each participating area. So, if 50 percent of your miles are in Texas, you pay 50 percent of Texas’s IRP fee for your truck. Every state has different rates, so costs will vary based on your routes and truck weight.

Step-by-Step Guide to Registering for IFTA

Are you ready to register for IFTA? Here’s what you need to know. 

Required Documents for IFTA Registration

To complete your IFTA registration process, you’ll need:

• USDOT Number
• Business EIN or SSN
• Vehicle registration for each truck
• A record of estimated miles in each state

Once registered, your IFTA license and decals must be displayed on each truck. Without them, you can expect hefty fines and potential impoundment.

How to File Your IFTA Quarterly Reports

A major part of staying compliant is filing IFTA reports every quarter. These reports calculate:

• Total fuel purchased in each state
• Total miles driven in each state
• How much fuel tax you’ve already paid vs. what’s still owed

IFTA filing mistakes, like forgetting to submit fuel receipts or misreporting miles, can lead to costly audits.

Step-by-Step Guide to Applying for IRP

Applying for IRP can be simple. Here’s how to go about it seamlessly.

IRP Application Process Overview

The IRP application process varies by state but generally includes:

• Registering your trucking business and getting an EIN
• Applying for a USDOT number
• Gathering vehicle titles, insurance, and lease agreements (if applicable)
• Calculating your estimated mileage across states
• Submitting your IRP application through your base state

Once approved, you’ll receive apportioned plates and a cab card listing all approved states for travel.

How to Renew Your IRP Plates

IRP registrations must be renewed annually. Missing IRP renewal deadlines can result in penalties, late fees, or even being put out of service.

Common Mistakes to Avoid When Filing for IFTA and IRP

Failing IFTA or IRP compliance can be costly. Here’s how to stay on track.

Late Filing Penalties and How to Avoid Them

Miss an IFTA filing deadline? Expect:

• Late fees that grow every day past the deadline
• Possible license suspensions
• Audits or additional fines

Similarly, filing your IRP application late could mean loss of registration and significant IRP trucking fees to reinstate it.

Remember to set calendar deadlines to avoid unnecessary penalties.

Keeping Accurate Fuel and Mileage Records

Bad bookkeeping is one of the biggest IRP compliance errors.

• Incorrect mileage reporting = Miscalculated IRP payments
• Missing fuel receipts = IFTA fuel tax discrepancies

The best practice is to use an electronic logging device (ELD) or trucking tax software to automatically track fuel purchases and mileage.

Need help getting your IFTA and IRP registration sorted? Choose Authority Express! Our Complete Trucking Authority Packages are your go-to for convenient compliance. Explore our CDL Complete package, which includes both IFTA and IRP registration for maximum peace of mind. Contact us now for details.