ExpressIFTA Blog

Tuesday, August 5, 2014

IFTA Things To Know: Late/No Filing Penalties

Filing your IFTA return on time is very important and is dedicated to helping you file your IFTA the easiest way available. Getting any type of paperwork done on time isn't always the easiest goal to accomplish, but for IFTA if you don't file on time you incur penalties. IFTA penalties are the ultimate dark cloud on any parade, so to best avoid them you need to know what they are.

The Penalties
According to IFTA legislation, A penalty of $50.00 or 10% of the net tax liability (the taxes owed), whichever is greater, will be assessed on late-filed reports, failure to file, or for underpayment of tax due. If the net tax liability is zero, or a credit, the late fling penalty will still be $50.00. To avoid penalties for late filing, the tax reports must be postmarked no later than midnight on the date indicated. If the last day of the month falls on a Saturday, Sunday or legal holiday, the next business day will be considered the deadline date.

So basically you will be looking at a $50.00 late fee in addition to the taxes owed on your IFTA return; as long as 10% of the net tax liability is less than the $50.00 late fee.

Interest On The Tax Due
Interest is computed on all delinquent taxes due to each state jurisdiction at a rate of .4167% per month. Even if you have a net refund, interest still applies to each jurisdiction for any underpayment of fuels use tax to that jurisdiction and is calculated beginning the day after the due date of the return for each month, or fraction of a month, until paid. It's like IFTA regulation doesn't believe in the period. 

Your IFTA License 
Filing late can have an effect on your IFTA License status. It all depends on your state, so you need to contact your base jurisdictions for how many times you can file late before your license is revoked. Now at renewal time, if you are not current on ANY quarters, you will not be able to renew your IFTA license.

If you have any questions about IFTA penalties, definitely contact your base jurisdiction for more information. When IFTA filing is just a major hassle you don't want to handle anymore, we have an amazing sister company, TSNAmerica, that can file IFTA on your behalf. All you would do is send in your mileage, and they take care of the rest. You can visit their website,, or better yet, give them a call at 803-386-0320 and they will be able to answer all your questions. They also take care of every permit under the sun, IRP, authorities, Form 2290, everything you would ever need to operate.

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