Recently, we took you through the most common IFTA mistakes, and this week we’re going to cover the late penalties and fees for those that don’t file their returns on time. If you were thinking about pushing off filing a little bit longer, hopefully this will convince you to do the opposite. We all give enough money to the IRS already, and after all, you do like money, right? Well then keep reading so we can tell you how to keep that hard-earned money in your pocket!
Late Filing Penalty:
If for some reason you do pay late, you can expect a penalty of $50, or 10% of the net tax liability, to be assessed on reports that are not filed, filed late, or that do not pay the entirety of the tax amount owed. If you don’t owe any taxes, the late-filing penalty will be $50.00.
To avoid getting these penalties, the reports must be postmarked no later than midnight on the last day of the quarterly deadline. Although, if the last day of the deadline is on a weekend or legal holiday, the next business day will act as the deadline.
Late Tax Payment Penalty:
In addition to the late filing penalty, a penalty is also due to each base jurisdiction you traveled in and owe taxes to.
For each jurisdiction, an interest rate of .4167% will be added to the tax amount owed every month until it is paid. If you have a net refund, this interest rate still applies and is calculated for all states beginning the day following the due date of the return.
IFTA License Revoked:
Yes, that’s right, many states will actually revoke an IFTA license if a quarterly return isn’t filed or if multiple returns are filed late. While it doesn’t happen often, it can, and you wouldn’t want to be the one to test that would you? So be sure you are filing and doing it on time!
Not only can your filings or lack thereof have an effect on your current IFTA license, but they can also keep you from getting your license renewed in the future. If, at renewal time, you are not current on any past quarters, you’ll have to pay the total tax amount owed before getting your new license.
If you have any questions about IFTA penalties or IFTA in general, give Truck Services of North America a call at 803.386.0320. Not only are they IFTA experts, but they also can file your IFTA return for you! Just send them the mileage and fuel information, and they’ll take care of the rest. They also help with tons of other trucking services like IRP Registration, BOC-3 Authority, HVUT filing (Form 2290), and just about anything else you need to operate a truck.
If you have any questions about using our program you can give us a call at 704.234.6005 or email us at email@example.com.
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