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Compliance
6 min read
Penalties, interest, and audits.
What late filing, underpayment, and non-compliance actually cost. Plus what triggers a roadside hold.
Why this matters
IFTA violations escalate quickly. The first miss is a $50 penalty. The third miss can revoke your license. A revoked license means you can legally drive in your home state and no other IFTA jurisdiction. For most carriers, that is the end of the business.
The standard penalty schedule
Late filing
Filed after the quarterly deadline.
$50 min or 10% of tax due
Late payment
Accrues from the original due date.
1% per month interest
Underpayment
When the amount paid is less than what was owed.
10% of underpaid amount
Non-filing (multiple quarters)
Effectively shuts you down across IFTA states.
License revocation
How interest is calculated
Interest typically accrues at 1% per month (12% annualized) from the original due date. It compounds monthly and applies to:
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The total tax liability.
+
Any unpaid penalties.
+
Previously accrued interest (yes, on top of itself).
Roadside risk
Operating without valid credentials can mean more than a desk-issued fine. At a roadside inspection you may face:
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$50 to $500 per state for operating without IFTA decals or license.
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Trip permits required to leave, purchased on the spot.
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Vehicle hold until compliance is verified.
How to avoid all of this
01
File on time, every time
02
Keep accurate records
03
Double-check calculations
04
File zero returns
Penalty abatement, when available
If you have reasonable cause, late filing or underpayment penalties can sometimes be reduced or waived. Contact your base jurisdiction's IFTA office before the deadline if you know you will be late; their response is more forgiving than after the fact.