Tuesday, July 15, 2014

Common IFTA Mistakes

Truck Services of North America receives many questions about the requirements of IFTA.  Here are a couple common mistakes that can be quite costly for IFTA license holders.

I do not have to file a quarterly return since I did not operate.
Many IFTA license holders assume that if they do not have any mies to report, that they do not have to file a quarterly IFTA return. This is not the case, if you hold a valid IFTA license, you are required to file a quarterly return by the deadline, even if no miles were traveled.  In the instance of no operations, you would simply file a zero return and no tax will be owed.  However, if you fail to file the zero return by the quarterly deadline, you will be responsible for the late filing penalty fee.

If I do not renew my IFTA license at the end of the year, my IFTA account will automatically be closed and I will not be required to continue to file quarterly returns.
This is not always true and depends on your state.  The process to close your IFTA account varies from state to state.  Some states revoke and close IFTA accounts as soon as you fail to file for one or two quarters.  Others close the account at renewal time, while others allow the account to remain open and each quarter that is late, is subject to the late filing penalties and interest for any tax due. You want to check with your state to find out what is required to close your IFTA account if you are going out of business or easing operations for any reason.  We have had customers who have been required to file over 4 years of outstanding IFTA returns, because they failed to close their account with the state.

TSNAmerica works very closely with state IFTA offices and can assist you in setting up, maintaining and closing your IFTA account.  We keep you informed of deadlines, file your quarterly returns and notify you of changes in rules and regulations, should they occur.

No comments:

Post a Comment