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Understanding the consequences of late filing, underpayment, and non-compliance can save you significant money and protect your operating authority.
IFTA violations can result in more than just fines. Your IFTA license can be revoked, preventing you from legally operating in IFTA member jurisdictions. This can effectively shut down your business.
| Violation | Penalty |
|---|---|
Late Filing Applied when you file after the quarterly deadline | $50 minimum or 10% of tax due |
Late Payment Interest accrues from the due date until payment | Interest at 1% per month |
Underpayment When the amount paid is less than what was owed | 10% of underpaid amount |
Non-Filing Failure to file for multiple quarters | License revocation |
Interest on unpaid IFTA taxes typically accrues at a rate of 1% per month (12% annually) from the original due date. Interest is calculated on:
The total tax liability
Any unpaid penalties
Previously accrued interest (compounds monthly)
Operating without valid IFTA credentials can result in additional penalties during roadside inspections:
$50-$500
Per-state fines for operating without credentials
Trip permits
May be required to purchase temporary permits at the roadside
Vehicle hold
Vehicle may be detained until compliance is verified
File on time, every time
Set reminders and file at least a week before the deadline
Keep accurate records
Maintain detailed trip logs and fuel receipts throughout the quarter
Double-check calculations
Use our calculator to verify your numbers before filing
File zero returns
Always file even if you had no activity that quarter
In some cases, you may be able to request penalty abatement if you have reasonable cause for late filing or underpayment. Contact your base jurisdiction's IFTA office to discuss your options.
Use our free calculator to get your IFTA taxes right.