August 24, 2015
IFTA PENALTIES AND INTEREST
Preparing your IFTA (International Fuel Tax Agreement) tax return and paying the taxes due is extremely important. Taking the time to gather all the documents and filling out all the proper forms can take up a lot of time that you may not have. Unfortunately, if you put it off, it can lead to penalties, which you can easily avoid by using Progressive Reporting to help you file your IFTA return.
One of our main goals at Progressive Reporting is to help you gain awareness about the IFTA and the penalties that you can incur if you make a late payment. Below are some things you may not know about IFTA regulations.
IFTA legislation states that a penalty of $50.00 or 10% of the taxes owed (whichever is greater) will be calculated on late-filed reports, failure to file or for underpayment of tax due. If the net tax liability is zero or a credit, you will owe the late filing penalty.
To avoid penalties for late filings, the tax reports need to be submitted to the correct base jurisdiction no later than midnight on the date indicated. If the last day of the month falls on a legal holiday or a weekend, the next business day will become the deadline date.
Interest is calculated into all taxes due to each state jurisdiction at the rate of .4167% per month. This is applicable for the net refund as well as the interest and will be applied to each jurisdiction for any underpayment of fuel use tax and would continue to pile up until you pay what you owe.
Depending on the state your jurisdiction is in; failing to file your IFTA tax return can affect your IFTA license status. Your jurisdiction will have a limit on how many times you can file late before your license is revoked. During the renewal time, if you are not current on any quarter, you will not be able to renew your IFTA license. Ask your base jurisdiction about your IFTA penalties.
Rather than incurring the possible penalties with interest, try our experts at Progressive Reporting. We will file your IFTA taxes on time without errors, leaving you with virtually nothing to do. To learn more about IFTA check out the Free Tips section of our website. Avoid those penalties and get ahold of us today at 1-866-736-6507.