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Business IFTA Letter

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BUSINESS IFTA LETTER

Date:

Parties and Identifying Information

Recitals

WHEREAS, Carrier Name: is engaged in interstate or international fuel-taxable motor vehicle operations subject to the International Fuel Tax Agreement (IFTA); and

WHEREAS, Carrier seeks to appoint an authorized agent to prepare, file and manage IFTA license applications, decal requests, quarterly fuel tax returns, refunds, and related communications with state/provincial fuel tax authorities; and

WHEREAS, Agent Name: represents that it has the expertise and authority to provide such services pursuant to the terms set forth below.

Appointment and Authorization

Carrier hereby appoints Agent and grants Agent full authority, as Carrier's attorney-in-fact for purposes limited to IFTA matters, to prepare, execute and file IFTA license applications and renewals; to prepare, sign and file quarterly and annual fuel tax returns; to request and receive decals and replacement decals; to receive confidential tax and motor carrier information; to request refunds or credits and to receive notices and correspondence related to Carrier's IFTA account. This authorization shall not permit Agent to amend corporate governance documents or bind Carrier outside the scope expressly set forth in this letter.

Scope of Work

Services shall include, at a minimum: preparation and submission of IFTA license applications and renewals; preparation and filing of quarterly fuel tax returns; reconciliation of fuel purchases and miles traveled by jurisdiction; decal ordering and replacement; responding to inquiries from fuel tax authorities; and maintaining records required by applicable IFTA rules. Any services outside this scope require prior written approval and may incur additional fees.

Payment Terms

Monthly billing Quarterly billing One-time fee

Fees are due within thirty (30) days of invoice date unless otherwise agreed in writing. Overdue balances shall incur the Late Payment Fee indicated above and Carrier shall be responsible for collection costs, including reasonable attorneys' fees, incurred to collect unpaid amounts.

Term and Termination

This Letter shall commence on Start Date: and shall continue until End Date: unless earlier terminated as provided herein.

Either party may terminate this Letter without cause upon written notice delivered at least days prior to the effective termination date. Either party may terminate immediately for material breach if such breach remains uncured for thirty (30) days following written notice of breach.

Confidentiality

For purposes of this Letter, "Confidential Information" means non-public information disclosed by one party to the other in connection with IFTA services, including tax returns, fuel purchase records, mileage logs, rates, pricing, and account numbers. Agent shall maintain Confidential Information in strict confidence and shall not disclose such information to third parties except (a) to perform the services contemplated by this Letter, (b) as required by law, or (c) with Carrier's prior written consent. Agent shall implement reasonable administrative, technical and physical safeguards to protect Confidential Information.

The obligations of confidentiality shall survive termination or expiration of this Letter for a period of three (3) years, except that obligations with respect to information that constitutes trade secrets under applicable law shall survive for as long as such information remains a trade secret.

Insurance and Indemnification

Agent shall maintain commercially reasonable professional liability and cyber liability insurance in connection with the services. Agent agrees to indemnify and hold Carrier harmless from and against any third-party claims, liabilities, losses or expenses arising from Agent's gross negligence, willful misconduct, or material breach of this Letter. Carrier shall indemnify Agent for claims arising from Carrier's misrepresentations or intentional failure to provide accurate records.

Governing Law

This Letter shall be governed by and construed in accordance with the laws of the State of without regard to conflict of laws principles.

Entire Agreement

This Letter, together with any exhibits or written fee schedules expressly incorporated herein, constitutes the entire agreement between the parties with respect to the subject matter and supersedes all prior oral or written agreements and understandings. Any amendment to this Letter must be in writing and signed by authorized representatives of both parties.

Miscellaneous Provisions

Notices required or permitted under this Letter shall be in writing and delivered to the mailing addresses set forth above or to such other address as a party designates in writing. Carrier authorizes Agent to disclose Carrier's IFTA account number and other identifying information to relevant authorities as needed to perform the services.

Client Name:

By:

Date:

Service Provider Name:

By:

Date:

Enter text✕

What a Business IFTA Letter Is and when it’s used

A Business IFTA Letter is a formal, written notice submitted by a motor carrier to its base jurisdiction or other state licensing agencies under the International Fuel Tax Agreement (IFTA). Typical uses include initial license requests, decal applications, changes to fleet ownership or base jurisdiction, requests to transfer or cancel an IFTA account, and explanations accompanying corrected fuel tax returns. The letter documents carrier identity, fleet and vehicle details, report periods affected, and any supporting documentation required for state review and administrative processing.

Why a clear, complete Business IFTA Letter matters

A properly prepared Business IFTA Letter reduces processing delays, supports accurate tax reporting, and creates an auditable record for multi-jurisdiction compliance. Clear letters help avoid fines, expedite decal issuance or account changes, and provide evidence if an audit or inquiry arises under state IFTA administration rules.

Why a clear, complete Business IFTA Letter matters

Who typically prepares and receives a Business IFTA Letter

The letter is usually prepared by a carrier, fleet manager, payroll/tax staff, or an authorized third-party agent and sent to the carrier’s IFTA base jurisdiction or state motor fuel tax office.

  • Motor carriers operating intrastate and interstate fleets who need licensing, decals, or account updates.
  • Fleet managers and operations teams responsible for vehicle records and quarterly fuel reporting.
  • Tax preparers and transportation attorneys acting as authorized agents for filings and correspondence.

Keep an internal copy with your fleet records and note the date sent and method of delivery for audit and retention requirements.

Core components to include in a professional Business IFTA Letter

A concise, standardized structure makes the letter easier for licensing staff to process. Include identifying data, fleet lists, specific request language, supporting attachments, and an authorized signature block to avoid follow-up.

Carrier Identity

Full legal business name, DBA if applicable, US DOT number and state-issued carrier number to confirm account linkage.

Base Jurisdiction

Clear statement of your designated base jurisdiction and, if changing, the effective date and reason for the change.

Fleet Details

List of vehicle numbers, unit identifiers, vehicle weight, and which vehicles the request applies to, matching internal fleet records.

Request Statement

Precise, single-paragraph request (e.g., issue decals, transfer account, cancel account) with the affected reporting periods named.

Supporting Documents

Attach registration records, sale/transfer paperwork, power of attorney, or corrected returns as applicable and label each file.

Authorized Signature

Printed name, title, phone, email, and signature of the authorized company representative plus date of signing.

Essential fields to capture on the letter

Carrier Name: Full legal name
US DOT Number: Numeric DOT ID
IFTA Account Number: State-issued account
Base Jurisdiction: State of account
Contact Information: Phone and email
Authorized Signer: Name and title

Step-by-step: prepare and submit a Business IFTA Letter

Follow these four steps to prepare a clear, auditable letter that state administrators can process without delays.

  • 01
    Gather records: Collect DOT, registration, sale/transfer, and prior IFTA correspondence.
  • 02
    Draft letter: State the request clearly and attach supporting evidence.
  • 03
    Sign and authenticate: Use an authorized signer and capture signature metadata for e-submissions.
  • 04
    Submit and document: Send to the base jurisdiction and note date, method, and confirmation.

Online workflow settings for digital completion and eSubmission

Configure a straightforward digital workflow so signers complete fields, attach documents, and produce an auditable final package.

Field Configuration
Signer Authentication Email plus SMS code for stronger attribution
Required Fields Make Carrier Name and IFTA number mandatory
Attachments Allow PDF/DOCX uploads, limit file size
Audit Trail Capture IP, timestamp, and signer actions

Where to file, and how the submission flows

Routing depends on the request type and your base jurisdiction; use the agency channel specified by that state motor fuel tax office.

  • Base Jurisdiction DOR: Primary recipient for licensing, decals, and account changes
  • State IFTA Office: Some states operate a dedicated IFTA unit or online portal
  • Carrier Records: Retain a signed copy in your fleet compliance file
  • Electronic Portals: Submit via state portal or secure email if the state permits

Digital signing essentials and platform needs

For eSubmission choose a platform that supports PDF/DOCX, strong signer authentication, and a complete audit trail.

  • File formats: PDF or DOCX
  • Integrations: CRM and cloud storage
  • Auth methods: Email, SMS code

Ensure the platform can produce a tamper-evident signed package and that you retain the audit record to satisfy state inspectors or audits.

Typical timing and deadlines to expect

Timing varies by purpose; allow lead time for licensing actions, decal delivery, and any associated vehicle registration updates.

Initial registration:

Processing can take several business days to weeks

Decal issuance:

Allow 2–4 weeks for decals to arrive

Base change effective date:

Specify effective MM/DD/YYYY in the letter

Quarterly reporting:

Quarterly returns file by your jurisdiction's deadline

Recordkeeping:

Retain documentation per retention rules

Key milestones from letter to account update

A typical process includes preparation, submission, administrative review, and final account update or decal distribution.

01

Prepare Letter

Assemble records, compose request, and sign.

02

Submit to Agency

Send via state portal, secure email, or mail.

03

Agency Review

State verifies records and may request clarification.

04

Update Issued

Account change, decals, or cancellation processed.

Common mistakes to avoid when preparing the letter

  • Using a trade name instead of the registered legal name, which can delay account matching and processing.
  • Omitting the IFTA account or USDOT number, forcing the agency to request clarifying information and extending processing time.
  • Failing to attach required supporting documents such as sale paperwork, power of attorney, or corrected returns when requested.
  • Submitting unsigned letters or using initials instead of an authorized signature, which may render the request incomplete.

Consequences of incomplete or incorrect submissions

Late Filing: State fines possible
Incorrect Account: Processing delays
Unsigned Letter: Request rejection
Missing Docs: Agency may assess penalties
Decal Violations: Fines and out-of-service risk
Audit Exposure: Additional assessments

Two common Business IFTA Letter scenarios and outcomes

These examples show why format, attachments, and clear signatures speed resolution.

Fleet Base Change

A regional carrier requested base jurisdiction transfer to reduce administrative overlap

  • Submitted vehicle list and lease agreements
  • Agency processed the change in two weeks after verifying operator identity and receipts; decals issued within three weeks.

Decal Replacement After Sale

An operator reported sold units and requested decal cancellation and replacement

  • Included bill-of-sale and updated vehicle list
  • The state suspended old decals and issued replacements after confirmation, avoiding penalty exposure during audit.

eSignature vendor pricing and capability snapshot for Business IFTA Letters

Compare common plan features and starting prices when selecting an eSignature provider for completing and submitting IFTA correspondence; signNow is listed first per vendor ordering rules.

signNow DocuSign Adobe Sign PandaDoc HelloSign
Starting Price $8/user/mo $15/user/mo $14/user/mo $19/user/mo $15/user/mo
Free Trial 7-day free trial Varies by plan Varies by plan Varies by plan Varies by plan
Bulk Send Yes Yes Yes Yes No
Audit Trail Yes Yes Yes Yes Yes
HIPAA Compliant Yes Yes Yes No No

Frequently asked questions about Business IFTA Letters

Answers to common questions on signatures, notarization, electronic submission, and retention to help avoid processing delays.


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