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IFTA late filing penalty and interest
If you file an IFTA return late, file it without paying, or underpay, your base jurisdiction can charge a penalty of $50 or 10% of the net tax due, whichever is greater. Interest is added on top for every month the tax stays unpaid.
How the penalty is calculated
| Net tax due on the return | 10% of tax due | Penalty charged |
|---|---|---|
| $0 (zero return or credit) | $0 | $50 |
| $300 | $30 | $50 |
| $500 | $50 | $50 |
| $1,200 | $120 | $120 |
| $4,000 | $400 | $400 |
The penalty applies when a return is filed late, when the tax is paid late and when tax is underpaid. Some jurisdictions add their own penalties for repeated or long delays.
How interest works
Interest is charged on tax that is paid late, for each jurisdiction where tax is due. It is counted for every month or part of a month from the due date until the tax is paid. Filing one day late costs a full month of interest.
IFTA sets the interest rate once a year. It is two percentage points above the IRS underpayment rate, and one twelfth of the annual rate is charged each month. Your base jurisdiction publishes the current rate.
What else can happen
- License suspension or revocation. A jurisdiction can suspend or revoke an IFTA license for returns that are not filed or not paid. Running without a valid license means buying trip permits or risking fines at the roadside.
- A bond requirement. Carriers with a history of late filing can be required to post a bond.
- Closer attention in an audit. Jurisdictions can audit the last 4 years, and late or amended returns invite questions.
If you are already late
- File now, even if you can't pay in full. Interest keeps growing every month.
- Pay what you can with the return and ask your base jurisdiction about a payment plan.
- Ask about a waiver. A jurisdiction may waive the penalty for reasonable cause. Interest is not usually waived.
How to avoid it
Late returns are rarely about the math. They happen because fuel and mileage files arrive at the last minute, or because one person holds the whole process in a spreadsheet.
IFTAflow sends data requests when the quarter ends, shows every carrier's status and deadline on one board.
Common questions
Is there a penalty if I owe nothing?
Yes. A late return with no tax due, or with a credit, is still charged the $50 minimum in most jurisdictions.
Is the penalty per state?
No. The $50 or 10% penalty is calculated once, on the net tax due on the whole return, by your base jurisdiction. Interest is calculated for each jurisdiction where tax was underpaid.
When are IFTA returns due in 2027?
February 1, April 30, August 2 and November 1, 2027. See the full list of IFTA due dates for 2027.