IFTA vs. IRP: Why You Cannot Have One Without the Other
Confused by the alphabet soup? We break down the critical differences between fuel tax (IFTA) and registration (IRP) and why your mileage records must match both.
Two Sides of the Same Coin
New owner-operators often confuse IFTA (International Fuel Tax Agreement) with IRP (International Registration Plan). While they are separate requirements, they are deeply interconnected. Failing to keep them synchronized is a recipe for an audit.
Definitions: What's the Difference?
- IFTA (Fuel Tax): This is about fuel. It ensures that fuel taxes are distributed to states based on where you drove, not just where you bought diesel. You file this quarterly.
- IRP (Registration): This is about access. It distributes your registration fees to states based on the percentage of miles you drive in each. You renew this annually (usually for "Apportioned Plates").
The Audit Trap: Mileage Synchronization
Here is where drivers get caught. When you file your IFTA returns quarterly, you are reporting your total miles. When you renew your IRP plates annually, you also report your total miles.
These numbers must match.
Auditors frequently cross-reference IFTA and IRP filings. If you reported 100,000 miles for IFTA but only 90,000 for IRP to save on registration fees, you have flagged yourself for a comprehensive audit of both.
Different Fiscal Years
Be careful with dates.
- IFTA follows the standard calendar year (Jan-Dec).
- IRP often follows a fiscal year (e.g., July-June) or a staggered renewal schedule depending on your state.
You need a system that can slice your mileage data by any date range.
One Source of Truth: FastIFTA acts as your central mileage database. You can generate reports for your quarterly IFTA filings and custom date ranges for your IRP renewal, ensuring your data is always consistent across government forms.